Key Findings
- Hotel occupancy in the United States is expected to reach 63.38% in 2025.
- The average daily rate (ADR) for U.S. hotels is expected to reach a new high of $162.16 in 2025.
- Revenue per available room (RevPAR) is projected to increase to $102.78 in 2025.
- Guest spending across the U.S. hotel industry is projected to reach a record high of $777.25 billion in 2025.
- U.S. hotels are expected to employ over 2.17 million people in 2025.
- Total wages and salaries paid by U.S. hotels are projected to exceed $128.47 billion in 2025.
- Hotels nationwide are projected to generate $55.46 billion in state and local taxes and $30.14 billion in federal taxes in 2025.
2025 is shaping up to be a big year for the U.S. hotel industry, with significant growth and changes underway. While the full impact of the pandemic and recent economic shifts is still being felt, we’ll explore the key U.S. hotel industry statistics that tell the story of this evolving sector.
Occupancy Rates and Revenue Generation
The projected occupancy rate for U.S. hotels in 2025 stands at 63.38%. While this falls slightly short of the pre-pandemic high of 65.80% (achieved in 2019), it represents a substantial rebound from the pandemic low of 43.89% in 2020 and demonstrates steady progress.
This moderate occupancy increase, combined with a projected rise in average daily rate (ADR) to $162.16, is driving significant growth in revenue per available room (RevPAR), projected to reach $102.78. This upward trend is particularly notable when considering the relatively flat performance in both ADR and RevPAR in 2024.
Guest Spending and Economic Impact
Beyond the revenue generated directly by hotels, the industry exerts a considerable positive influence on the broader economy. In 2025, guest spending is predicted to surpass $777.25 billion — a new record — demonstrating the vital role of the hospitality sector in stimulating local economies.
This robust guest spending translates into substantial tax revenue generation, with hotels anticipated to contribute over $55.46 billion in state and local taxes and an additional $30.14 billion in federal taxes. The increase in lodging taxes alone is projected to reach $26.82 billion, reflecting the industry’s growing economic significance.
See also: Must-Attend Hospitality Conferences and Events for 2025
Workforce Dynamics and Challenges
The hotel industry’s recovery is intrinsically linked to its workforce. While the sector has regained a substantial portion of the jobs lost during the pandemic, surpassing 2.15 million in 2024, challenges persist.
With 64.9% of hotels still struggling to fill positions as of December 2024, the industry urgently needs a more strategic approach to human resource management. Hotels are actively adapting to these challenges by implementing initiatives such as competitive wage increases, more flexible work arrangements and improved benefits packages.
The projected increase in employment to over 2.17 million in 2025 and a 2.13% rise in total wages and salaries to $128.47 billion reflects the industry’s commitment to addressing these crucial workforce needs.
Evolving Travel Trends and the Modern Traveler
The profile of the modern traveler is evolving. While traditional travel patterns persist, there’s a notable rise in solo travelers, especially among older women (18% in 2022 vs. 4% in 2019).
Younger generations, including Gen Z and millennials, prioritize unique travel experiences. They seek adventures that are both sustainable and culturally immersive, reflecting their values.
These shifts demand that hotels adapt their offerings to provide personalized and flexible accommodations, catering to diverse travel styles and preferences. While comprehensive 2025 data is still emerging, early indicators suggest these trends will continue to shape the industry throughout the year.
Mega-Events and Their Economic Impact
The hospitality industry’s growth in 2025 is further propelled by the economic impact of mega-events. The Taylor Swift Eras Tour serves as a prime example of the potential for entertainment events to drive substantial revenue and employment opportunities.
Spanning 51 cities and generating $2.2 billion in ticket sales, this tour not only revitalized the entertainment industry but also significantly boosted local economies. Pittsburgh, for example, saw record hotel occupancy and $46 million in visitor spending.
Looking ahead, major sporting events will significantly impact the hospitality sector. The 2026 FIFA World Cup alone is projected to generate over $5 billion in economic activity. The 2028 Los Angeles Olympics are expected to generate an even larger $11 billion.
Technology’s Transformative Role
Technology is rapidly reshaping the hospitality landscape. The implementation of artificial intelligence (AI) is impacting various aspects of the industry, including personalized customer service, optimized operations and enhanced security measures.
AI-powered chatbots, dynamic pricing models and personalized travel itineraries are transforming the guest experience. However, ethical considerations and transparency regarding data privacy are crucial for building and maintaining customer trust.
While the full impact of AI on 2025 industry performance is yet to be seen, early adoption suggests it will play a significant role in shaping future trends.
Challenges and Opportunities
Despite positive growth projections, the hotel industry faces ongoing challenges in 2025. Increased operational costs and intense competition are significant challenges for the hotel industry. Stringent short-term rental regulations, especially in cities such as New York, add another layer of difficulty.
Long-term success in 2025 requires the hotel industry to adopt innovative strategies. This includes cost control, exploring diverse revenue sources and fostering collaboration to ensure sustainability and profitability.
See also: US Restaurant Industry Statistics for 2025
Methodology
The data and projections presented in this article on U.S. hotel industry statistics for 2025 are derived from the American Hotel & Lodging Association’s (AHLA) “2025 State of the Industry Report.”
This report provides comprehensive insights into the current state and future outlook of the U.S. hotel industry, drawing upon data from various sources including Oxford Economics and STR/CoStar Group.
All statistics and projections included in this article are sourced from the AHLA report. Note that certain figures represent projections and should be interpreted as such.
Written by Sasha Vidakovic
Sasha is an experienced writer and editor with over eight years in the industry. Holding a master’s degree in English and Russian, she brings both linguistic expertise and creativity to her role at OysterLink. When she’s not working, she enjoys exploring new destinations, with travel being a key part of both her personal and professional growth.
Reviewed by Marcy Miniano
Marcy is an editor and writer with a background in public relations and brand marketing. Throughout her nearly decade-long career, she has honed her skills in crafting content and helping build brands across various industries — including restaurant and hospitality, travel, tech, fashion and entertainment.
