Hotel Market Insights Q3 2025: Downtown Tourism Driving U.S. Travel Growth

Downtown districts remain the heartbeat of U.S. tourism, capturing a surge of travelers who want proximity to culture, events, dining, and nightlife. According to data (Aug 2025), U.S. hotel occupancy averaged 66.2% in Q3 2025, with major downtown markets consistently outperforming suburban and highway hotels. Domestic travelers, concerts, conventions, and sports events have all fueled this steady demand (STR, 2025).