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Puerto Rico Lodging Demand Rose Sharply in August

Thursday, September 25, 2025 Research

Lodging demand skyrockets in August, up 17%

August total lodging demand, as tracked by STR (Smith Travel Research) and AirDNA, showed growth of 16.5%compared to last year. Hotel room blocks secured a solid group base from visitors attending the Bad Bunny concert series, but data suggests that plenty of visitors chose rental accommodations as well, with the Island’s demand share of the rental market reaching 49%.

In August, hotel demand surpassed 367,000 room nights, reflecting a 9.4% year-over-year increase and positioning the month as the third highest in room nights sold, following March and July. Overall occupancy reached 74%, up 8% compared to the previous year. Notably, luxury and upper upscale hotels in San Juan led performance, achieving an average occupancy of 81%, a 20% rise year-over-year, and a RevPAR of $228, marking a30% increase.

Mirroring the growth in the hotel sector, Puerto Rico’s short-term rental market recorded approximately 346,500booked nights in August, up 25% year-over-year, making it the third strongest month in 2025. In the San Juan Metro area alone, over 100,000 rental nights were booked, representing a 48% increase, and generating more than $22 million in revenue, a 57% surge compared to the same period last year

Year-to-date total lodging demand has reached a record 5.6 million room nights, an 8% increase from last year, with hotels slightly up (1.1%) and rentals increasing 16%.

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August lodging revenue up 22%, a new record

August lodging revenues climbed to $173 million, up 22%, setting a new monthly record. Hotels averagedrates of $264, contributing $97 million in revenue, a 16% year-over-year increase and the strongest hotelrevenue performance since April. The rental market also saw notable growth, generating $76 million, a 31%rise from last year, with average rates increasing 5% to $220.

Group or event-driven travel patterns were evident in August, with 30% of rental listing nights bookedlocated in San Juan—a five-point increase over last year. The average booking lead time was 61 days beforearrival, 28 days earlier than last year, and 12 days ahead of the Puerto Rico average of 48 days

Year-to-date lodging revenues approach $1.5 billion, reflecting a 10% increase over last year, fueled by astrong first quarter and a late-summer boost. Hotel revenues rose 3% to $893 million, while rentals saw an18% year-over-year surge, generating $602 million.

While higher hotel rates continue to dominate the lodging segment’s revenue share, the rental market issteadily gaining ground—now accounting for 40% of the trackable market, a significant rise from 26% in2019.

San Juan properties lead August

Hotel Occupancy Performance by segment highlights notable differences in occupancy rates and year-over-year changes across hotel segments in Puerto Rico. Driven by strong group demand, the San Juan Area Luxury & Upper Upscale hotels led the market with an impressive 81% occupancy rate and a 20.4% increase compared to last year, indicating strong demand in the high-end urban segment. San Juan Area Upscale & Upper followed closely with 78% occupancy, though it saw as light decline of 1.5%.

Regional segments outside San Juan performed more modestly: Puerto Rico Regional Upscale &Upper Mid reached 67% occupancy, down 2.2%, and Regional Luxury & Upper Upscale had the lowest occupancy, at 59%, down 1.8%.

When examining average daily hotel rates (ADR) and their year-over-year changes across hotel segments, the Puerto Rico Regional Luxury & Upper Upscale segment recorded the highest ADR at $345, despite experiencing a 4.9% decline compared to last year. In contrast, the San Juan AreaUpscale & Upper segment showed the most significant growth, with an 11.9% increase in ADR, reaching $216. The San Juan Area Luxury & Upper Upscale segment also performed well, with a 7.7%increase and an ADR of $283. Meanwhile, the Puerto Rico overall average stood at $264, reflecting a 5.9% increase, and the Regional Upscale & Upper Mid segment had the lowest ADR at $161, with a modest 2.2% growth.

Positive outlook for hotels and rentals in the coming months

In looking at the next six months, hotel and rental reservation activity remains very optimistic. As of September 7th, Amadeus Hospitality reports September hotel occupancy at 51%, which is 20% higher than the same time last year. October is showing even stronger performance, pacing 21% ahead year-over-year with 38% more group reservations than last year.

The third quarter is currently pacing at 70.3% hotel occupancy, an 11% increase over last year. The fourth quarter also shows promising trends, with a 14% rise in reservation pace. December, after several months pacing behind last year, picked up reservations post Labor Day Weekend and is now pacing almost 7%ahead of last year, with leisure business pacing 15% ahead.

Short-term rental activity continues to show robust growth. According to AirDNA, as of September 8th, every upcoming month is seeing an increase in booked listing nights. November and December stand out, with34% and 32% more rental room nights booked so far, respectively, compared to the same time last year.

Furthermore, the first quarter of next year is looking promising with overall hotel occupancy pacing 19.4%ahead of last year, including 32% more leisure nights and 17% more group room nights booked than at the same time last year.