CoStar, Tourism Economics downgrade U.S. hotel forecast

ARLINGTON, Va. – 12 November 2025 – CoStar and Tourism Economics further downgraded performance projections in the final U.S. hotel forecast revision of 2025. 

For 2025, occupancy was lowered 0.2 percentage points to 62.3%, while average daily rate (ADR) was maintained at +0.8% for the year. Revenue per available room (RevPAR) was downgraded 0.3 ppts to -0.4%. The last total-year RevPAR declines in the U.S. occurred in 2020 and 2009.  

Similar adjustments were made for 2026: occupancy (-0.3 ppts), ADR (-0.1 ppts) and RevPAR (-0.3 ppts). 

“We expect little change in the macroeconomic environment as unemployment and prices continue to rise,” said Amanda Hite, STR president. “As a result, our hotel performance outlook for the remainder of this year and next were lowered once again. ADR is growing well below the rate of inflation, which in turn will put more pressure on margins.”

"Job market softening, policy uncertainty, and tariff costs remain near-term drags for consumers. However, heading into 2026, we expect the U.S. travel economy to firm up moderately," said Aran Ryan, director of industry studies with Tourism Economics. "Household income growth will continue, accompanied by tax cut benefits, resumed hiring, and less policy instability. Expanding global long-haul travel and World Cup interest will bring improved international visitation."

“GOPPAR projections have been lowered from our previous forecast, with the decrease in 2025 being mainly due to higher expenses, especially in the F&B department, as well as increased costs in other operated departments, marketing, and utilities,” said Hite. “Labor costs will be slightly higher in 2025, likely due to the increase in the aforementioned F&B department, which is traditionally more labor-intensive.”

For more information about the company and its products and services, please visit costargroup.com. 

News Media Contacts

Haley Luther
Senior Communications Manager 
(216) 278-0627
hluther@str.com 

Aran Ryan
Director, Lodging Analytics
aran.ryan@oxfordeconomics.com
+1 610 995 9600

About CoStar Group 
CoStar Group (NASDAQ: CSGP) is a global leader in commercial real estate information, analytics, online marketplaces and 3D digital twin technology. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights and connections that improve their businesses and lives.

CoStar Group’s major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; and Homes.com, the fastest-growing residential real estate marketplace. CoStar Group’s industry-leading brands also include Matterport, a leading spatial data company whose platform turns buildings into data to make every space more valuable and accessible, STR, a global leader in hospitality data and benchmarking, Ten-X, an online platform for commercial real estate auctions and negotiated bids and OnTheMarket, a leading residential property portal in the United Kingdom.

CoStar Group’s websites attracted an average of 143 million unique monthly visitors in the third quarter of 2025, serving clients worldwide. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website as a channel of distribution for material company information. For more information, visit CoStarGroup.com.

This news release includes "forward-looking statements" including, without limitation, statements regarding CoStar's expectations or beliefs regarding the future. These statements are based upon current beliefs and are subject to many risks and uncertainties that could cause actual results to differ materially from these statements. The following factors, among others, could cause or contribute to such differences: the risk that expected suppressed consumer spending from general macroeconomic conditions like inflation do not result in forecasted decreases across occupancy, ADR and RevPAR in the remainder of 2025 and into the first quarter of 2026, and the risk that those same general macroeconomic conditions do not ease for U.S. travel in the first quarter of 2026 as contemplated . More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar’s filings from time to time with the Securities and Exchange Commission, including in CoStar’s Annual Report on Form 10-K for the year ended December 31, 2023 and Forms 10-Q for the quarterly periods ended March 31, 2024, June 30, 2024, and September 30, 2023, each of which is filed with the SEC, including in the “Risk Factors” section of those filings, as well as CoStar’s other filings with the SEC available at the SEC’s website (www.sec.gov). All forward-looking statements are based on information available to CoStar on the date hereof, and CoStar assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Tourism Economics
Tourism Economics, an Oxford Economics company, focuses on the intersection of the economy and travel sector, providing actionable insights to our clients. We provide our worldwide client base with direct access to the most comprehensive set of historic and forecast travel data available. And our team of specialist economists develops custom economic impact studies, policy analysis, and forecast models.