U.S. hotel performance strengthens in March

Rising rates and occupancy signal sustained demand momentum across key markets

U.S. hotels recorded solid year-over-year growth in March, with increases in average daily rate (ADR), occupancy, and revenue per available room (RevPAR), according to CoStar’s STR data. The results continue a positive trend from February and represent some of the strongest gains since 2024. Growth was driven by both higher pricing and improved occupancy levels, indicating resilient travel demand. Key markets such as San Francisco and Las Vegas significantly outperformed the national average, supported by major events and conferences.

Key takeaways

• RevPAR growth: Revenue per available room rose 5.9% year over year to $108.99, reflecting overall strengthening hotel performance.
• Rate-driven gains: ADR increased 3.8% to $168.06, showing that hotels continue to push pricing without dampening demand.
• Occupancy improvement: Occupancy grew by 2% to 64.9%, indicating steady recovery and consistent travel activity.
• Top market performance: San Francisco led growth with double-digit increases across ADR, occupancy, and RevPAR, driven by conference demand.
• Las Vegas momentum: Las Vegas posted strong gains in both ADR and RevPAR, reinforcing its position as a high-demand events and leisure destination.
• Broad-based uplift: RevPAR increased in 19 of the top 25 U.S. markets, suggesting that growth is widespread rather than limited to a few cities.

Source: CoStar

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