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Asheville tourism revenue increases as hotel demand slips

Asheville tourism revenue increases as hotel demand slips

A hotel in Asheville’s River Arts District is seen on a fall morning. Buncombe County lodging sales rose nearly 11% in July, even as hotel demand and occupancy dipped from a year earlier. Photo: Associated Press, Clipart.com, Contributed, Metro Services, Saga Communications/Dee Pridgen


ASHEVILLE, N.C. (828newsNOW) — Buncombe County lodging brought in more money in July than it did a year ago, but the latest numbers show Asheville’s tourism recovery remains uneven as the region heads into its important fall travel season.

Lodging sales reached $54.9 million in July, up 10.8% from $49.5 million in July 2025, according to figures presented Wednesday to the Buncombe County Tourism Development Authority.

But the increase in revenue did not come with an increase in the number of hotel rooms sold.

Hotel demand, which measures rooms sold, fell 1.9% from July 2025. Occupancy also edged down, from 70.8% last July to 69.9% this year.

Room rates, meanwhile, went up.

The average daily hotel rate climbed 10.2%, from $158 last July to $175 this July. Revenue per available room, an industry measure known as RevPAR, rose 8.7% to $122.

Explore Asheville President and CEO Vic Isley described the tourism recovery as uneven, with some businesses still feeling the effects of Tropical Storm Helene two years after the storm disrupted one of Western North Carolina’s biggest industries.

The gains come as Asheville’s tourism industry continues working its way back from the steep drop in visitation and hospitality employment that followed Helene.

Vacation rentals post gains

Vacation rentals had a stronger July by several measures.

Occupancy increased from 63.5% in July 2025 to 66.8% this year, while demand rose 3.2%.

Travelers also paid more. The average daily vacation-rental rate rose from $223 to $253.

The July figures show different performance between the two lodging sectors. Hotels generated more revenue despite selling fewer rooms, while vacation rentals posted gains in both occupancy and demand.

Last year wasn’t a typical year

Comparisons with 2025 come with an important caveat.

Some of last year’s lodging demand came from FEMA personnel, contractors and others working on Helene recovery rather than traditional leisure travelers. Displaced residents also relied on temporary lodging after the storm.

That makes last year’s numbers an unusual benchmark for measuring the return of tourists.

Tourism officials also said booking windows remain shorter than before Helene, although there are signs travelers are beginning to book farther in advance. Group business has improved as well.

The next couple months could provide a clearer picture.

Fall is traditionally one of Western North Carolina’s busiest tourism seasons, bringing visitors to the mountains for changing leaves, outdoor recreation and other attractions. That makes the season especially important for hotels, vacation rentals, restaurants, shops and attractions still working their way back from Helene.

For now, the latest numbers show more money flowing into Buncombe County lodging, but not all parts of the tourism industry are moving at the same pace.

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