Hotel Industry: Market Statistics and Occupancy Trends

October 22, 2025

This article was written by our expert who is surveying the hotel industry and constantly updating the business plan for a hotel.

Below is a clear, data-driven FAQ that explains hotel market statistics and occupancy trends as of October 2025.

It summarizes the last 12 months, highlights what is moving now, and gives a simple outlook for the next year so you can make decisions with confidence.

If you want to dig deeper and learn more, you can download our business plan for a hotel. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our hotel financial plan.

Summary

Global hotel performance improved modestly over the last year, with strong regional differences and a rate-driven RevPAR mix. Urban markets and selected leisure destinations led the gains, while a few Asia ex-Japan markets felt pressure from new supply and softer demand.

Price (ADR) held firm in most regions, occupancy edged up slightly, and forecasts point to slow, steady growth through the next 12 months—assuming stable macro conditions.

Topic	What’s happening now (Oct 2025)	Why it matters for new hotel owners
Global occupancy	Europe ~73% in mid-2024 (+1 pp YoY); U.S. ~63.4% projected for 2025 (flat to +0.4 pp); APAC mixed with Japan/Korea leading; Middle East strong.	Baseline demand is resilient; plan staffing and pricing for slightly higher volumes in 2026.
ADR & RevPAR	U.S. ADR ~$161.9 in Jul-2025 (flat YoY); U.S. RevPAR −1.1% YoY that month; Europe rate/RevPAR eased early-2025; APAC +3% RevPAR in 2025, rate-led.	Rates are doing more work than occupancy; yield management remains the key margin lever.
Leaders & laggards	Growth: Houston, NYC, Chicago; Japan, Dubai, Southern Europe. Softer: parts of China/SE Asia.	Pick locations/themes aligned with current demand corridors; avoid oversupplied nodes.
Segments	Luxury/upscale steady in global gateways; midscale stable; budget pressured where new supply is heavy.	Choose segment positioning based on local demand elasticity and pipeline risk.
Seasonality	Q2–Q3 strongest; Q1 and late-Q4 weakest, except sun and event markets.	Build cash buffers for shoulder season; shift marketing to fill weak weeks.
Booking behavior	OTAs strong for leisure/international; direct gaining with loyalty; lead times normalizing; cancellations above 2019 but lower than 2021–22.	Invest in direct channels and flexible policies without eroding rate integrity.
Outlook (12 mo.)	Moderate increases in occupancy/ADR/RevPAR; U.S. RevPAR ~+2% 2025; APAC ~+3% 2025; downside risks from macro and supply.	Budget for modest growth; scenario-plan for rate softness or event-driven spikes.

Who wrote this content?

The Dojo Business Team

A team of financial experts, consultants, and writers

We're a team of finance experts, consultants, market analysts, and specialized writers dedicated to helping new hotel entrepreneurs launch and grow. We help you avoid costly mistakes by providing detailed business plans, accurate market studies, and reliable financial forecasts to maximize your chances of success from day one—especially in the hotel market.

How we created this content 🔎📝

At Dojo Business, we know the hotel market inside out—we track trends and market dynamics every single day. But we don't just rely on reports and analysis. We talk daily with local experts—owners, operators, investors, and key industry players. These direct conversations give us real insights into what's actually happening in the market.
To create this content, we started with our own conversations and observations. But we didn't stop there. To make sure our numbers and data are rock-solid, we also dug into reputable, recognized sources that you'll find listed at the bottom of this article.
You'll also see plain-English breakdowns that make complex information simple and actionable. We hope you find them helpful! All other illustrations were created in-house and added by hand.
If you think we missed something or could have gone deeper on certain points, let us know—we'll get back to you within 24 hours.

What is the current hotel occupancy by region, and how did it change in the last 12 months?

Region	Current occupancy level	12-month change and context
Europe	~73% (mid-2024), broadly stable at a high base	~+1 percentage point YoY; Southern Europe (Spain, Italy) outperformed on sustained leisure travel and events.
United States	~63.4% projected for 2025 (vs. ~63.0% in 2024)	Marginal improvement but still below 2019 peaks; demand normalization after the post-pandemic surge.
Asia Pacific	Mixed: Japan/Taiwan/Korea strong; China/Singapore/Thailand softer	Net positive direction, with rate doing more work than occupancy; intra-regional travel patterns evolving.
Middle East	Strong in Dubai/Abu Dhabi	Major events and robust inbound leisure kept occupancies elevated despite growing supply.
Latin America	Generally steady in key capitals	Selective event/holiday spikes; currency and economic factors shape rate strategy market by market.
Africa	Stable to improving in gateway cities	Tourism corridors and conferences drove incremental gains; supply limited in many sub-markets.
Global view	Slightly higher than a year ago	Recovery matured; mix shifted toward price strength more than volume gains in many markets.

What are ADR and RevPAR trends across hotel market segments?

Segment	ADR trend (last 12 months)	RevPAR trend and read-through
Luxury	High rates in global gateways; mild softening in some mature EU cities	RevPAR stable to slightly lower where occupancy plateaued; strong where events/cross-border demand persisted.
Upper Upscale / Upscale	Firm pricing in top U.S./EU/ME cities	RevPAR broadly steady; group and international travel helped urban cores.
Upper Midscale	Stable rates with disciplined discounting	RevPAR resilient; less volatility than luxury/budget.
Midscale	Stable to modest gains	RevPAR steady; occupancy dependable in business-friendly corridors.
Economy / Budget	Rate pressure where new supply is heavy	RevPAR challenged in oversupplied nodes; better in drive-to markets.
Resort	Seasonal rate peaks maintained	RevPAR led by ADR; occupancy capped by capacity and seasonality.
Extended Stay	Stable pricing; corporate/project demand supportive	RevPAR steady with higher length of stay; rate integrity crucial.

You’ll find detailed market insights in our hotel business plan, updated every quarter.

Which cities or regions show the fastest occupancy growth, and which are declining?

Leaders: Houston, New York City, and Chicago posted notable 2024 gains on events, group recovery, and infrastructure cycles.
International leaders: Japan’s key cities (seasonal peaks, strong inbound), Dubai, and Southern Europe delivered solid growth.
Softer spots: Parts of China and Southeast Asia reported weaker occupancy/ADR due to macro headwinds and supply additions.
Watch list: Markets with rapid new openings often see temporary absorption pressure before stabilizing.
Action: Align your sales mix with corridors that show durable demand catalysts (airlift, events, business clusters).

How do occupancy and revenue trends differ by hotel class (luxury, midscale, budget)?

Luxury and upscale properties held strong rates, with some softness in mature European destinations.

Midscale stayed steady with disciplined discounting and dependable corporate/transient demand in balanced markets.

Budget/economy faced the most pressure where new supply surged and price sensitivity is high; secondary and drive-to markets were more resilient.

These differences reflect each segment’s elasticity and exposure to events, groups, and international arrivals.

Choose positioning based on local demand durability and the incoming pipeline.

What are the seasonal occupancy patterns, and which months are strongest and weakest?

Season	Occupancy pattern	Operational takeaway
Q1 (Jan–Mar)	Weakest weeks post-holiday; exceptions for winter-sun and major events	Lean schedules, targeted promotions, group push to fill midweeks.
Q2 (Apr–Jun)	Strength builds with spring travel and events	Maximize rates; protect shoulder nights with length-of-stay rules.
Q3 (Jul–Sep)	Peak leisure in Northern Hemisphere	Focus on rate optimization and ancillary capture.
Q4 (Oct–Dec)	Mixed: early-Q4 softer, late-Q4 holidays can spike resorts	Use segmented offers; manage blackout dates carefully.
Event spikes	Fairs, concerts, sports, conferences drive short surges	Deploy event calendars and dynamic restrictions early.
Resort anomalies	Local climate patterns can flip typical seasonality	Tie pricing to airlift and school calendars, not just history.
Urban anomalies	Conventions and new route launches reshape demand	Coordinate with CVBs and airline updates to forecast pace.

How did business travel and leisure travel each contribute to occupancy over the past year?

Leisure remained the primary driver of global demand growth.

Business travel recovered further in major cities, with groups and conferences improving urban RevPAR.

Corporate transient stays were slightly shorter, while group lengths stabilized around event calendars.

This mix explains why rates held up even where occupancies were flat.

Plan for hybrid demand: weekend leisure strength plus midweek group/corporate blocks.

This is one of the strategies explained in our hotel business plan.

What role do OTAs vs. direct bookings play today?

OTAs remain strong for leisure and international guests who comparison-shop across brands.
Major hotel brands report incremental gains in direct share thanks to loyalty perks and better digital funnels.
OTA share is higher in budget and midscale where brand loyalty is weaker.
Direct bookings convert best with member-only rates, value-adds, and simple mobile UX.
Combine OTA visibility with confident direct price parity and clear membership benefits.

What is the average length of stay by traveler type, and how is it shifting?

Leisure trips kept longer average stays than pre-pandemic, particularly in resorts and destination cities.

Corporate transient stays shortened slightly as travel policies tightened, while group/conference stays normalized with event calendars.

Extended-stay and project-based demand supported steadier LHS (length-of-stay) in select corridors.

Design packages that reward longer stays without discounting core peak nights.

Use minimum-stay and shoulder-night incentives to shape pace.

How are new openings and supply growth affecting occupancy in key markets?

Supply growth in places like Singapore, Auckland, and parts of Australia created absorption headwinds in 2024–2025.
Many U.S. and core EU markets stayed more balanced, limiting occupancy erosion.
Where supply ramps quickly, RevPAR can flatten or dip until demand catches up.
Pipeline timing versus event calendars determines how quickly new keys are absorbed.
Track local permitting and brand conversion activity to anticipate pricing pressure.

What are current cancellation rates and booking lead times?

Metric	Status vs. pre-pandemic	Implications
Cancellation rate	Lower than 2021–2022 peaks; still above 2019	Protect with deposit rules and tiered cancellation windows.
Leisure lead time	Normalizing but somewhat compressed	Push early-bird offers and LOS rules around peaks.
Business/group lead time	Closer to historical norms	Forecast blocks earlier; coordinate with venues and organizers.
OTA bookings	Shorter average lead times	Hold inventory fences; avoid last-minute deep discounting.
Direct bookings	Longer lead times among loyalty members	Use member rates and add-ons to pull demand forward.
No-show risk	Higher for short-lead transient	Use pre-auths and flexible but firm terms to reduce leakage.
Group rebooking	More predictable vs. 2022	Codify attrition clauses; partner on re-dates early.

How do urban, resort, and suburban hotel trends compare?

Location type	Occupancy/RevPAR trend	Owner/operator playbook
Urban	Strongest momentum on business/group return and inbound tourism	Prioritize corporate accounts, meetings, and international channels.
Resort	Leisure pricing remains the main RevPAR driver	Focus on premium packaging, F&B, and experiences.
Suburban	Normalized near pre-2019 levels	Lean cost structure, local corporate and drive-to strategies.
Airport	Recovery tied to airlift and crew contracts	Negotiate airline/crew and event-week allotments early.
University/Medical	Steady base demand	Own the calendar of commencements, appointments, and conferences.
High-event cities	Sharp but brief spikes	Use stay-through and advance purchase to capture peak value.
Secondary cities	Varies with local projects and logistics	Prospect project-based business and government contracts.

We cover this exact topic in the hotel business plan.

What are experts forecasting for occupancy, ADR, and RevPAR over the next 12 months?

Metric / Region	12-month outlook	Key risks and sensitivities
Global Occupancy	Low single-digit gains from a stable base	Macro slowdown, geopolitics, and airlift could trim gains.
U.S. RevPAR	~+2% for 2025 (rate-led)	Event pacing, corporate budgets, and new supply corridor-by-corridor.
APAC RevPAR	~+3% for 2025 (mostly ADR)	China demand recovery pace and regional currency moves.
Europe	Stable occupancy; some rate normalization after peaks	Event calendar concentration and exchange rates.
Middle East	Above-trend performance in event hubs	Supply catch-up and demand seasonality.
Leisure	Strong but normalizing	Household budgets and airfare costs.
Group/Business	Gradual improvement in urban cores	Corporate travel policies and conference cycle.

Get expert guidance and actionable steps inside our hotel business plan.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

Want to keep building your hotel strategy?

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