New data has revealed a significant downturn in the US hospitality sector, with hotel bookings across the country declining by 9.43 per cent in 2025 compared to the previous year. This sharp drop follows what industry experts describe as a 'volatile year for business,' marked by economic instability and political disruptions.
International Bookings Also Suffer
International bookings to the United States decreased by 7.56 per cent during the same period, compounding the challenges faced by the hotel industry. The year 2025 was particularly tumultuous for the US, characterized by fluctuating tariffs, a weaker dollar, and the longest government shutdown in the nation's history, which lasted from October 1 to November 12, 2025.
Contrasting Trends in North America
In contrast to the US decline, Canada experienced a positive shift, with total hotel booking volumes increasing by 6.14 per cent. This growth occurred despite a notable plummet in bookings from US travelers, suggesting a diversification in Canada's tourism sources.
Research indicates that the US hotel market was highly inconsistent throughout 2025, fluctuating significantly from month to month. December proved especially challenging, with international bookings dropping by 17.44 per cent compared to December 2024.
Mixed Results from Key Markets
Among major markets traveling to the US in 2025, only two countries recorded increased bookings at American hotels. Bookings from India rose by 8.71 per cent by year's end, while those from Australia grew by an impressive 12.15 per cent.
Conversely, Scandinavian countries were hit particularly hard. Volumes from Finland fell by 12.88 per cent, Denmark saw a decline of 19.45 per cent, and bookings from Sweden dropped sharply by 23.34 per cent.
Domestic Bookings and Pricing Trends
According to hotel booking specialist HotelHub, US domestic bookings took a substantial hit in 2025, decreasing by 9.73 per cent. Despite the drop in occupancy, the study found a rise in overall hotel rates. Average nightly rates increased by 6.3 per cent to $198 (£144) in the fourth quarter of the year.
For the entirety of 2025, rates went up by 3.13 per cent year-on-year, reaching an average of $189 (£138) per night. Additionally, there was a 1.65 per cent decrease in the average length of stay, from 2.47 days in 2024 to 2.43 days in 2025.
Booking Patterns Shift
The data also revealed a 2.08 per cent increase in average booking lead times, rising from 16.13 days in 2024 to 16.46 days in 2025. This suggests that travelers are planning their trips further in advance, possibly in response to economic uncertainties.
Marriott Bonvoy emerged as the most popular hotel chain for HotelHub users in 2025, accounting for nearly 21 per cent of all bookings. This top spot highlights consumer preferences amid the challenging market conditions.
Expert Analysis and Future Outlook
Paul Raymond, HotelHub's chief commercial officer, commented on the findings: 'The full dataset for 2025 reflects a volatile year for business dominated by inconsistent US policies – and this new status quo looks unlikely to change given the events of the first few weeks of the year.'
He added, 'However, 2026 has already seen moves by the UK, Canada, and the EU to forge new trade partnerships with countries like China and India. So it will be interesting to see if these efforts have any stabilising effect in the coming months and what it will mean for business travel around the world.'
The overall picture indicates a complex landscape for the US hotel industry, with declining bookings but rising rates, pointing to potential shifts in travel behavior and economic pressures affecting both domestic and international visitors.
