Home » Latest Travel News » New York Joins Texas, Louisiana, California, Nevada, Massachusetts, Florida, and Others in Significant Hotel Booking Decline with Record Drop In Occupancy Across US in 2025: Everything You Need To Know
Published on
October 26, 2025
New York saw a 0.5% decline in hotel occupancy in 2025, joining Texas, Louisiana, California, Nevada, Massachusetts, Florida, and other states in experiencing a downturn. This drop, while relatively small, was driven by broader economic uncertainty and a decrease in major events, which traditionally fuel demand for hotel stays. Like many other states, New York’s tourism industry faced several challenges, including reduced international visitors and changing travel behaviors. The impact was felt most acutely in key tourist areas, where the absence of large-scale conventions and international tourists significantly affected hotel bookings and occupancy levels.
In Texas and Louisiana, the situation was more severe, with occupancy rates plummeting by double digits, reflecting both economic struggles and the lingering effects of extreme weather events that disrupted travel. States like California and Nevada saw similar declines, influenced by factors such as political instability, a slow recovery in international tourism, and a shift in consumer preferences. Massachusetts, with its reliance on academic events and cultural tourism, also witnessed fewer visitors, contributing to the overall decline in hotel performance.
The decline in hotel occupancy and bookings across these states highlights the vulnerability of the hospitality industry in the face of economic shifts, changing travel patterns, and the ongoing impact of global events. This trend is not isolated, as it reflects a larger national challenge, with the U.S. hotel industry navigating an uncertain landscape in 2025. The ripple effect of these declines is being felt not just by hotel owners but also by local economies that depend on tourism revenue to drive growth and support jobs.
New York City, New York: Minor Dip in Hotel Occupancy Amid Global Uncertainty
New York City experienced a marginal decline of 0.5% in hotel occupancy, falling to 86.6% in October 2025. The ADR remained steady at $162.69, but RevPAR showed a slight dip of 2.1%, reaching $103.19. Although NYC remains a global tourism hub, the city faced several headwinds, including global economic uncertainty, geopolitical tensions, and a decrease in international travel. The absence of major international events, along with rising hotel prices and safety concerns, contributed to the decline in hotel bookings across the city, affecting occupancy rates and overall tourism performance.
Las Vegas, Nevada: Hotel Occupancy Plummets Amid Economic Struggles
In October 2025, Las Vegas saw a sharp 21.3% drop in hotel occupancy, falling to 63.5%, signaling a troubling trend for the city’s tourism-dependent economy. Alongside the occupancy decline, the average daily rate (ADR) decreased by 5.2%, landing at $178.82, while revenue per available room (RevPAR) also dropped by 21.3%. These declines are largely attributed to a reduction in international visitors, particularly from Europe and Asia, compounded by economic challenges affecting travel spending. Despite large-scale conventions drawing in crowds, the overall recovery in bookings has been slower than expected, highlighting ongoing struggles for Nevada’s tourism sector.
New Orleans, Louisiana: Hotel Bookings Slide Amid Economic Challenges
New Orleans faced an 18.7% drop in hotel occupancy, falling to 48.5% in October 2025. The ADR dropped by 3.2% to $229.34, while RevPAR fell by the same percentage, settling at $120.47. The city’s tourism industry, traditionally bolstered by its vibrant cultural scene, faced several hurdles, including economic uncertainty, reduced international travel, and the lasting effects of severe weather events that disrupted travel patterns. These factors led to a noticeable dip in visitor numbers, especially during the off-peak season, causing a slowdown in hotel bookings across the city.
Houston, Texas: Business Travel and Sector Slowdown Impact Hotel Industry
Houston’s hotel market experienced a 5.6% drop in occupancy, down to 55.6% in October 2025, reflecting broader challenges for the city’s tourism sector. The ADR fell by 2.3% to $162.69, and RevPAR decreased by 2.1%, reaching $103.19. The downturn in hotel bookings is largely attributed to a slowdown in business travel, particularly in the energy sector, which is a major driver of tourism to Houston. Additionally, the aftermath of Hurricane Beryl in 2024 displaced travel demand, further exacerbating the city’s challenges in recovery. These factors combined to create a significant dip in hotel bookings for the month.
Miami, Florida: Decline in Hotel Bookings Following High-Demand 2024 Events
Miami saw a dramatic drop in hotel performance in October 2025, with ADR plummeting by 27.2% to $178.62 and RevPAR decreasing by 32.7% to $120.96. This decline is primarily due to a tough comparison to 2024’s high-demand events, such as Art Basel and the Winter Music Conference, which set a high benchmark for hotel bookings. With fewer international visitors, especially from Canada and Europe, and a decrease in major events, Miami’s hotel industry struggled to maintain the same level of occupancy and revenue. This drop highlights the challenges facing cities that rely heavily on international tourism and large events to drive hotel demand.
Los Angeles, California: Wildfires and Political Unrest Hurt Hotel Occupancy
Los Angeles saw a major 50% decline in hotel occupancy in key districts like Hollywood in October 2025, signaling a significant downturn for the city’s hotel industry. The ADR and RevPAR also faced slight declines, with several factors contributing to the downturn. A spike in wildfires and political unrest in the region discouraged tourists, while a 30% drop in Canadian visitors during the summer months further compounded the situation. Despite remaining a popular destination for international tourists, these challenges led to decreased hotel bookings and overall lower occupancy compared to previous years, affecting the city’s tourism sector.
Boston, Massachusetts: Event Slowdown Contributes to Hotel Declines
In October 2025, Boston experienced a 7% drop in hotel occupancy compared to the previous year, signaling a slowdown for the city’s hotel sector. The ADR slightly decreased, and RevPAR showed a notable drop, reflecting the challenges facing the city’s tourism industry. Economic uncertainty, coupled with a decrease in international travel from Europe and Asia, has negatively impacted Boston’s tourism. The city, which heavily relies on conventions and academic events, saw fewer large-scale events in 2025, contributing to lower hotel demand. This downturn reflects broader regional trends of lower occupancy and ADR across the country.
Hotel Industry Urges Congress to End Government Shutdown Amid $650 Million in Losses
Impact of Government Shutdown on Hotel Industry
The ongoing U.S. government shutdown has led to a $650 million loss in hotel business. More than 30 industry associations are urging Congress to act quickly, as the shutdown costs the economy $31 million daily in lost hotel activity, especially affecting the holiday travel season.
Economic Consequences and Consumer Confidence
Hotel leaders emphasize the devastating impact of the shutdown on the travel and hospitality sectors. With booking cancellations and postponed trips, economic uncertainty is eroding consumer confidence. This situation is particularly concerning as the peak holiday season approaches, leading to potential long-term damage for the industry.
Call for Action to Restore Stability
The hotel industry, supporting 2.1 million direct jobs and $894 billion in GDP, demands urgent congressional action to reopen the government. Industry leaders stress the importance of the sector’s contributions to the economy and urge lawmakers to act swiftly to protect jobs and restore stability for millions of workers.
New York saw a 0.5% decline in hotel occupancy in 2025, joining Texas, Louisiana, California, Nevada, Massachusetts, Florida, and others in a significant drop in hotel bookings. This downturn is driven by economic uncertainty, reduced international travel, and fewer large events, all contributing to the record decline in occupancy across the U.S.
Conclusion
New York joined Texas, Louisiana, California, Nevada, Massachusetts, and other states in a significant hotel booking decline and record drop in occupancy across the U.S. in 2025. This widespread downturn was largely driven by economic uncertainty, which led to fewer international visitors, reduced business travel, and a lack of major events that typically boost tourism. While the decline was most pronounced in states like Nevada and Louisiana, the ripple effects were felt nationwide, with a noticeable impact on local economies and the broader hospitality sector. As these states grapple with the ongoing challenges, the road to recovery for the U.S. hotel industry remains uncertain, with continued shifts in travel behavior and global factors shaping the future of the industry.
