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Las Vegas hotels face decline under cloudy industry performance forecast.If you’ve ever doubted that a city of slot machines and sequins could take a tumble, CoStar’s latest hotel data for the week ending 14 June 2025 is a reminder that even Las Vegas can’t bluff its way past the odds forever.

In a broadly lukewarm showing across the U.S. hotel sector, the entertainment capital of the world posted some rather sobering numbers—sobering enough to make you want to skip the minibar altogether. According to CoStar, the U.S. hotel industry reported a 2.4% year-over-year dip in occupancy, settling at 68.6%. Meanwhile, revenue per available room (RevPAR) slipped by 1.8% to US$112.11, despite a faint pulse in the form of a 0.6% rise in average daily rate (ADR), now nudging up to US$163.43.

But let’s not all throw in the hotel towel just yet.

While Vegas folded with a dramatic drop in all three performance metrics—occupancy down 20.6% to 66.2%, ADR falling 9.1% to US$180.40, and RevPAR plunging 27.8% to US$119.51—some plucky outliers were holding the industry’s cocktail glass high.

San Diego, where sun and seafood rarely fail to charm, emerged as the week’s top high roller. The coastal Californian city led the charge with a robust 10.4% leap in ADR (to US$244.60) and a sizzling 13.1% gain in RevPAR, topping out at US$205.12. It seems the surf, sand, and premium stays are luring in travellers who still have a taste for top-shelf getaways.

And then there’s St. Louis—yes, the home of the Gateway Arch and, it would appear, gateway hotel bookings. The Missouri metropolis pulled a surprise win with a 7.1% occupancy boost, taking its rate to a healthy 73.2%. Travellers are rediscovering the charms of middle America—baseball, blues, and brisket, anyone?

Not all cities fared quite so well. Houston, Phoenix, and Philadelphia joined Las Vegas in the dreaded double-digit decline in RevPAR. Houston dropped 14.3% to a modest US$74.86, Phoenix followed with an 11.1% fall to US$69.30, and Philly—perhaps still riding the post-Super Bowl blues—slid 10.2% to US$117.00.

These figures come courtesy of CoStar, the authority on real estate data analytics in the U.S. hospitality space. Their weekly reports are the closest thing the industry has to a crystal ball, minus the smoke and mirrors.

For hoteliers looking for silver linings, San Diego and St. Louis offer valuable lessons in regional resilience, while Vegas’s slip might serve as a cautionary tale: even glitter can lose its sparkle when the numbers aren’t stacking up.

As always in this fickle business, location remains the ace in the pack—and for now, it’s the cities playing the long game with steady demand and event calendars that are cashing in.

For deeper data dives and more hospitality insights, visit CoStar Group. And if you’re heading to Vegas, maybe hold off on betting the house… at least until the RevPAR recovers.

By Sandra Jones

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