According to the STR report, U.S. hotel occupancy continued its decline in May, extending a five-month downward trend. While the drop is less than 1%, it’s still notable, as occupancy has been steadily slipping throughout 2025. Meanwhile, the average daily rate (ADR) rose modestly—again, by under 1%.

Looking at upscale and luxury hotels specifically, occupancy dipped slightly by just over 1% but their ADR surged by more than 4%. This pricing boost helped drive revenue per available room (RevPAR) up by over 1%.

Looking ahead, occupancy is expected to remain flat or continue falling for the rest of the year. To help reverse this trend and boost your hotel’s performance, consider the following strategies:

1. Track daily rates for your property and your competitors. Try and adjust pricing to stay ahead of competition on special events and weekends.
2. Boost online visibility by monitoring your listings on OTAs and leverage their promotional tools. Enhance hotel visibility by using performance enhancers from major sites like Expedia, Booking.com, Priceline, Hotels.com, Agoda, Trip.com, AirBNB, VRBO etc.
3. Ensure hotel is connected to all major OTA sites and stay competitive
4. Manage your online reputation, actively monitor reviews and respond promptly to feedback.
5. Encourage multiple night customers by offering better rates through packages and perks for multi-night bookings.
6. Offer compelling packages and create special deals that set you apart.

One powerful tool to help implement these strategies is the KeyinReservation.com system. It offers:

• Dynamic revenue management that automatically adjusts rates according to market demand and upcoming events.
• Connects with all the OTA’s. Increase your occupancy by having online visibility throughout the entire market. Keyinreservation.com system connects through more than 1,000 major OTA and GDS sites.
• Advanced pick-up tracking, showing room bookings one, two, three, and seven days out-segmented by guest category and compared to the same period in prior years. Unlike most RMS software, it also includes expected stayovers and regular bookings in its calculations.
• Customizable segmentation, for example, an airport hotel can be segmented by airport traffic, another by group bookings or proximity to industrial zones. Hotel franchises can guide segment setup to suit individual property needs.
• Detailed trend reporting, enabling district managers or owners to view monthly performance, identify revenue shortfalls, and take corrective action.

By using the KeyinReservation system, you gain precise forecasting, smarter pricing, and better insights, all of which can help stabilize and grow your hotel’s occupancy and revenue.