How US Hotels Are Pivoting Amid Decline in International Visitors

The U.S. hotel industry has been on a bumpy ride since January 2025, largely due to declining international visitor numbers. 

The most recent data from hotel analytics firm STR shows that hotel occupancy declined for the ninth consecutive month in November 2025, dropping 2.8 percent year over year to 57.9 percent. 

During the same timeframe, Revenue Per Available Room (RevPAR) has been on a largely downward trajectory. STR data on this front shows a 2.3 percent decline to $88.97. Only one hotel industry metric ticked upward in November, the Average Daily Rate (ADR), which increased 0.6 percent.

These figures are declining at a time when more and more countries are issuing advisories surrounding travel to the United States. That includes Canada and several European nations.

Most recently, Germany issued new, heightened guidance for its citizens regarding travel to the United States. The update comes in response to the violence taking place in Minneapolis, where Immigration and Customs Enforcement (ICE) officials continue to occupy the city.

New visitor fees rolled out by the Trump Administration, such as the $250 ‘visa integrity fee’ introduced in 2025 and this year’s increased $100 surcharge at national parks for non-U.S. residents, are not helping matters. Similarly, plans for increased scrutiny of foreign tourists, including a proposal to look at five years of visitors’ social media history, may be dampening enthusiasm among international source markets.


None of this has been good news for the hotel industry, particularly in major gateway cities and resort destinations that have historically relied on overseas visitors.

“The U.S. did lose a segment of international travel last year, beginning largely in February through March,” says Rod Clough, president of the Americas for HVS, a global consulting and valuation services organization focused on the leisure and hospitality industry.

“We don’t foresee a significant part of that lost demand returning this year – although the World Cup may shore up some of the loss by the end of the year,” adds Clough.

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, offers a similarly somber outlook.

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

In response to the fraught landscape that some are predicting will likely continue for at least the next two years, hotels are employing a variety of tactics to recoup their losses.

How the hotel industry is pivoting

One of the most consistent trends being witnessed right now in the hotel industry is a pivot to greater reliance on domestic travelers. (Which may be good news for U.S. consumers who are booking hotel rooms in the coming months.)

"The U.S. has seen a 6 percent drop in international visitors in 2025, and this trend looks set to continue,” says Tim Hentschel, co-founder and co-CEO of the booking platform HotelPlanner. “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.”

The industry's efforts to court American travelers have included offering discounted hotel prices for local travelers, says Hentschel, who also recommends that hotels seeking to capitalize on the shift to local tourists increase their inventory in the nation's top domestic markets. That includes such locations as Hawaii, Las Vegas, New York City, Key West, and New Orleans, as well as areas surrounding America's iconic national parks.

That's exactly what's taking place at Virgin Hotels in New York City, where General Manager Denise Luna says the Midtown Manhattan property has adjusted inventory to better match how domestic travelers are actually booking. "That means more flexibility around short stays, stronger availability around long weekends, and fewer restrictions that don’t reflect current demand," Luna told TravelPulse.

"We’re also aligning room inventory with on-property programming, whether that’s wellness, dining, or cultural events, so a one- or two-night stay still feels intentional and worth the trip," Luna adds. "It’s less reallocating and more redirecting."

Tim Devlin, executive vice president of the hospitality industry marketing firm Veridian, has also witnessed the pivot taking place, telling TravelPulse that hotels have been busy localizing offers for domestic travelers and protecting room rates with value‑adds, along with adding drive-friendly benefits to reward programs. 

U.S. enters 'new frontier' of domestic leisure travel

All of these efforts on the part of the hotel indusry reflect what Whitten suggests is a new frontier of domestic leisure for the United States. It's a development he predicts will also be characterized by an abundance of domestic weekend getaways, reunion travel, bachelorette parties, corporate offsite gatherings and senior travel.

“What was once the small revenue stream is emerging as the major opportunity for filling in the losses from the huge decrease in international travel,” says Whitten.

“I'm seeing hotels all around Nashville, from big networks like Marriott to the lone operators, pivot to the folks in their backyard,” he adds.

Going one step further, Whitten predicts that the hotels that will survive the current choppy waters are those that actively embrace the domestic leisure revenue stream. And the hotels that are likely to thrive are those located in markets and cities that are not dependent on international travelers. 

He's not alone in this outlook. "Cities with strong cultural pull and year-round relevance are performing best," says Luna. "New York continues to benefit from domestic travelers who want a full experience without leaving the country. We’re seeing consistent demand from the Northeast corridor, the Southeast, and key Midwest markets, particularly from travelers choosing shorter, more frequent trips instead of long international vacations."

Bright spots for the U.S. hotel industry

Though the hotel industry is indeed facing challenges in some markets at the moment, there are also a few noteworthy bright spots, say experts. For instance, the upcoming World Cup events taking place in the United States will likely entice international visitors back to the U.S.

"The World Cup will drive a bubble of demand, led by some international visitors, within cities and surrounding suburbs, especially if local destination marketing organizations can drive excitement even for individuals without tickets," says Devlin. "America’s 250th will bring added, and needed, attention to the Northeast, with the greatest impacts for Boston, New York, New Jersey, Philadelphia, and Washington, D.C.. Here again ,DMO support and programming will be key to drive interest. 

Leisure group business (such as weddings and corporate bookings), is another successful revenue stream for hotels at the moment, adds Hentschel. Group bookings are up 12 percent year-over-year in general, he says, a reality that's holding rates steady from 2025's historic highs into 2026. What's more, these types of bookings are filling rooms 30 days or more in advance. 

Virgin Hotels New York City once again is a living example of this reality. "Group business has become a meaningful driver, especially meetings, brand events, and social gatherings tied to the city’s broader event calendar," says Luna. "These bookings don’t just fill rooms. They drive food and beverage revenue and create energy in the hotel, which is especially important in an urban market."

And one last reason for optimism: Summer is just around the corner, and hotel bookings from international travelers are already coming in strong. "We expect international demand to grow if the U.S. dollar remains weak," says Hentschel.

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