US Hotels Adapt as International Visitor Numbers Decline

Industry experts discuss the challenges facing the US hotel market and the strategies hotels are employing to pivot towards domestic travelers.

Jan. 29, 2026 at 11:15pm

Got story updates? Submit your updates here. ›

The US hotel industry has faced declining occupancy and revenue per available room (RevPAR) in recent months, largely due to a drop in international visitors. Factors like new travel fees, increased scrutiny of foreign tourists, and global advisories against travel to the US have contributed to the decline. In response, hotels are focusing more on catering to domestic travelers through discounts, localized offers, and drive-friendly rewards programs. While the upcoming World Cup and US 250th anniversary events may provide a temporary boost in international demand, experts predict the domestic leisure travel segment will be the key opportunity for hotels to fill the gap left by fewer overseas visitors.

Why it matters

The decline in international visitors to the US has had a significant impact on the hotel industry, particularly in major gateway cities and resort destinations that have historically relied on overseas travelers. As hotels pivot to target domestic travelers, it could provide opportunities for US consumers to find more discounted hotel rates and packages, but also raises questions about the long-term viability of the hotel industry if international travel to the US remains depressed.

The details

Hotel analytics firm STR data shows that US hotel occupancy declined for the ninth consecutive month in November 2025, dropping 2.8% year-over-year to 57.9%. RevPAR also declined 2.3% to $88.97, while the only metric that increased was Average Daily Rate (ADR), which rose 0.6%. These declines come as more countries issue travel advisories against visiting the US, including Germany's recent heightened guidance in response to unrest in Minneapolis. New visitor fees like the $250 'visa integrity fee' and increased national park surcharges for non-US residents are also dampening international demand.

  • Hotel occupancy declined for the ninth consecutive month in November 2025.
  • The World Cup events taking place in the US will likely drive a temporary increase in international visitors later in 2026.
  • The US 250th anniversary in 2026 is expected to bring added attention and demand to the Northeast region of the country.

The players

Rod Clough

President of the Americas for HVS, a global consulting and valuation services organization focused on the leisure and hospitality industry.

Paul Whitten

Founder of Nashville Adventures, a tour company that partners closely with hotels and relies on hotel relationships for one-quarter of its revenue.

Tim Hentschel

Co-founder and co-CEO of the booking platform HotelPlanner.

Tim Devlin

Executive vice president of the hospitality industry marketing firm Veridian.

Got photos? Submit your photos here. ›

What they’re saying

“The U.S. did lose a segment of international travel last year, beginning largely in February through March. We don't foresee a significant part of this lost demand returning this year – although the World Cup may shore up some of the loss by the end of the year.”

— Rod Clough, President of the Americas, HVS (TravelPulse)

“International travel is probably going to be low for the majority of the Trump Administration and it could last even longer.”

— Paul Whitten, Founder, Nashville Adventures (TravelPulse)

“The U.S. has seen a 6 percent drop in international visitors in 2025, and this trend looks set to continue. That doesn't mean the desire to travel has disappeared. Instead, it makes total sense for American hotels to focus on catering to the domestic market.”

— Tim Hentschel, Co-founder and co-CEO, HotelPlanner (TravelPulse)

What’s next

The upcoming World Cup events taking place in the United States will likely entice international visitors back to this market, providing a temporary boost in demand. Additionally, the US 250th anniversary in 2026 is expected to bring added attention and demand to the Northeast region of the country.

The takeaway

As the US hotel industry faces a decline in international visitors, hotels are pivoting to focus more on catering to domestic travelers through discounts, localized offers, and drive-friendly rewards programs. While temporary events like the World Cup may provide a boost, experts predict the domestic leisure travel segment will be the key opportunity for hotels to fill the gap left by fewer overseas visitors in the coming years.