Hotels in New Orleans and Vegas Are Running Surprisingly Empty

New CoStar data published October 4 shows some of America’s best-known leisure destinations having a rough late summer. New Orleans posted 43.3 percent occupancy for August, down 7.7 percent from a year earlier and the lowest among the top 25 US markets, with revenue per available room at $51.63, down 9 percent.

Las Vegas fared worse in one week. For August 16 to 22, occupancy there was 60.0 percent, down 17.4 percent year over year, and revenue per available room fell 20 percent to $95.15. That was the steepest occupancy decline among major markets that week.

The national picture was calmer: August occupancy averaged 66.4 percent, 0.5 percent above August 2025. San Francisco was the standout, at 79.3 percent occupancy, up 6.6 percent, with revenue per available room up 15.8 percent to $171.84.

The report points to a seasonal drop after July’s peak, Louisiana’s heat and humidity, event-timing gaps that distorted New Orleans comparisons, and destination-specific demand swings. For travelers, softer demand can mean better rates: if you’re flexible, Vegas and New Orleans hotels may be offering deals this fall.

Sources: Travel And Tour World