U.S. hotel industry sees strongest RevPAR growth in three years

The U.S. hotel industry recorded its strongest quarterly revenue per available room (RevPAR) growth since the first quarter of 2023. According to a Cushman and Wakefield report, RevPAR rose 7.1 percent to $114.04 in the third quarter. This growth was driven by a 2.7 percent increase in occupancy and a 4.3 percent rise in average daily rates (ADR), which reached $168.50.

Demand for room nights increased by 3.1 percent, while the supply of available rooms grew by only 0.4 percent. Luxury hotels led the sector with an 11.9 percent RevPAR increase. Major urban markets saw significant gains, with Washington, D.C. and Philadelphia recording RevPAR growth of 17.8 percent and 17.5 percent, respectively.

In the corporate sector, Hilton reported adding 23,000 net rooms in the third quarter, representing a 6 percent unit growth. This expansion rate outpaced competitors Marriott, Hyatt, and IHG. While Hilton led in room additions, Hyatt and Marriott saw higher comparable system-wide RevPAR growth rates.