This fifteenth annual Lodging Tax Study presents data on city, state, and special district lodging and sales taxes imposed on lodging sales.
We provide historical data on tax rates and collection and distribution of revenue from lodging taxes levied in all 50 States and the 150 largest US cities.
Our analysis of 25 major U.S. hotel markets shows room revenue growth slowing through 2024 and leveling off through the first eight months of 2025, reflecting weakening travel demand across key markets.
Lodging Industry Overview
Since room sales generate lodging tax revenues, an overview of hotel market trends provides insight into the industry’s current and future fiscal impacts. As documented in our 2024 HVS Lodging Tax Study, the national lodging market has experienced recent growth in average daily room rates and revenue per available room. However, occupancy levels have remained relatively flat.
The Average Daily Room Rate (“ADR”) represents the average revenue earned for each room rented in a hotel. Revenue per available room (“RevPAR”), the product of ADR and occupancy rate, is a standard industry metric that combines the effects of occupancy and room rates on overall revenue performance.
ADR and RevPAR increased in 2024 but has seen slower growth through the first eight months of 2025 compared to the same period in 2024. The figure below compares year-over-year growth in the national lodging market from 2023 through August 2025.
National Lodging Market Figures From 2023-2025
Source: STR Global
Occupancy levels have declined in early 2025 compared to the same period in 2024, with ADR growth also slowing due to reduced leisure travel and greater consumer price sensitivity. Preliminary 2025 data through August suggests minimal RevPAR growth, reflecting weaker travel sentiment across many markets, particularly among international travelers, despite modest gains in ADR. The figure below illustrates year-over-year RevPAR trends for the top 25 major U.S. markets.
Top 25 US Lodging Markets Year-Over-Year Growth of RevPAR
Source: STR Global
The strength of RevPAR growth varies widely across major U.S. markets. Since 2023, most markets have experienced gains, although Las Vegas and Houston saw notable declines in early 2025 compared to the same period in 2024. In contrast, San Francisco, Orlando, and Tampa recorded some of the strongest growth in early 2025, driven by warm-weather demand and a steady calendar of large-scale events.
Markets such as Washington, D.C., New York, and Chicago—each supported by strong convention business and diverse visitation drivers—posted some of the most robust growth in 2024. Convention and group demand have remained resilient, with many destinations reporting solid attendance and healthy booking activity through 2025.
Overall, however, year-to-date data indicate that national RevPAR growth is slowing significantly and may stagnate in 2025.
Read the full report here
Thomas Hazinski leads the HVS Convention, Sports & Entertainment Facilities Consulting practice (HVS CSE), which he founded in 2001. Tom advises state and local governments and private entities on the development of convention centers, sports facilities, performing arts centers, and many other types of public assembly facilities. HVS CSE provides feasibility studies, operational analysis, economic and fiscal impact analyses, and tax projections that support the issuance of public debt. Tom earned an advanced degree in Public Policy from the University of Chicago, where he has recently served as an adjunct professor, teaching a graduate level course in state and local finance. With seven years of governmental experience and over 25 years of consulting experience, he is a widely published industry leader. Tom has work on over 600 studies of public assembly facilities and mixed-use developments in nearly every state in the US. His extensive international experience includes hospitality and mixed-use projects in Europe, Asia, Africa, and the Middle East. Tom is also a leading expert on public/private partnerships in hotel development. Contact Tom at thazinski@hvs.com
Henry Detmer is an Associate at HVS Convention, Sports & Entertainment. He provides support to senior staff for market, feasibility, tax, and impact studies for various types of hospitality-related developments. Henry graduated from Carleton College with a Bachelor of Arts in Economics.
Max Leeds is an Associate at HVS Convention, Sport, & Entertainment Facilities Consulting. He holds a Bachelor of Arts in Sport Management with a focus in Sports Real Estate Development from the University of Michigan.
