**U.S. Hotel RevPAR, ADR Rise Year Over Year Amid Sector Recovery**
Colliers has reported improving financial conditions for U.S. hospitality assets, with notable strength in the Northeast and Central regions. This recovery is being fueled by continued leisure travel and the resurgence of conferences and events.
From April 2024 to March 2025, U.S. hotels experienced a 2.4% increase in revenue per available room (RevPAR), a 1.9% rise in average daily rate (ADR), and slight growth in occupancy rates. While some areas are still working to match pre-pandemic performance levels, others have recovered to prior cyclical highs.
“We’re seeing performance diverge by region and asset type, which is creating targeted opportunities for investors who understand how to navigate today’s complexity and capitalize on long-term fundamentals,” said Mark Owens, Vice Chair, Capital Markets at Colliers.
Despite positive trends, the report did note a modest decline in consumer travel spending. Year-over-year, lodging expenditures dropped 2.5%, and airfare spending fell 6%. Short-term challenges—particularly in global gateway markets—may affect international travel due to broader economic conditions. Nonetheless, robust domestic demand, driven by both leisure and group travel, continues to support overall sector performance.
