Nantucket tops nationwide hotel price index with average rate of $621 per night as luxury coastal destinations retain pricing power
According to a new nationwide hotel pricing survey conducted by Cheaphotels.org and released on August 4, 2025, Nantucket and Martha’s Vineyard—two exclusive island getaways off the coast of Massachusetts—have emerged as the most expensive summer destinations in the United States. The report, which evaluated average nightly hotel rates for August 2025, underscores the persistent demand for luxury travel experiences despite broader signs of moderation in post-pandemic leisure spending.
Why are Nantucket and Martha’s Vineyard the costliest summer getaways in 2025?
The Cheaphotels.org survey ranked destinations based on the average rate of the cheapest available double room at hotels rated three stars and above. Only properties near beaches or city centers were considered. Nantucket claimed the top spot with an average nightly rate of $621, followed by Martha’s Vineyard at $532. The survey window spanned the entire month of August and included all taxes and fees in the pricing calculations.
These figures reflect the continued premium tourists are willing to pay for secluded, scenic destinations that limit supply through zoning, preservation regulations, and ferry access constraints. In Nantucket’s case, a strict cap on hotel development, historic preservation ordinances, and an elite brand image have kept average rates well above national benchmarks, even amid a broader price softening in luxury travel segments.
Montauk, New York—another upscale coastal enclave—ranked third with a $512 nightly average, cementing the Northeast’s dominance in the U.S. summer travel luxury tier. Further inland, Saratoga Springs (NY) and Burlington (VT) rounded out the top five along with Kennebunkport (ME), all surpassing $380 per night.
How do these 2025 prices compare to previous years?
When compared to the previous edition of the same survey in 2023, the average hotel rate among the top 20 most expensive summer destinations has decreased by roughly 7%. This suggests a mild correction in the market following several years of post-pandemic travel surges and inflation-driven rate hikes across the leisure hospitality sector.
However, some locations bucked this trend. Notably, Laguna Beach and Santa Barbara in California have seen double-digit price growth since 2023, with rates jumping nearly 20%. This localized inflation may be attributed to new luxury property openings, limited room supply, and resilient demand in the Southern California coastal market. By contrast, destinations such as Poipu (Hawaii) and Avalon (California) saw their hotel rates plummet by over 30%, reflecting broader demand volatility in island travel markets following high fuel prices and shifting traveler preferences.
What does this indicate about U.S. leisure travel demand?
The pricing trends captured in the August 2025 survey suggest a bifurcation in the domestic tourism economy. On one end, traditionally high-cost luxury destinations such as Nantucket, Martha’s Vineyard, and Montauk continue to command premium rates, signaling ongoing strength in upper-income travel demand despite some signs of macroeconomic cooling. On the other end, destinations that once saw COVID-era travel booms, including certain parts of Hawaii and California, may now be experiencing normalization—or even saturation—leading to aggressive discounting by hotel operators.
The report also highlights regional disparities. The Northeast is disproportionately represented in the top ten, with Massachusetts and Maine contributing a combined five destinations—Nantucket, Martha’s Vineyard, Provincetown, Bar Harbor, and Kennebunkport. This suggests that seasonal coastal travel in New England remains highly resilient, supported by drive-to traffic from major urban centers like Boston, New York, and Philadelphia.
California, by contrast, has just one representative in the top ten—Huntington Beach, which came in at number nine with an average of $351 per night. Portland (ME) completes the list in tenth place at $346, reinforcing the Northeast’s dominance in summer travel pricing.
Has luxury travel stabilized or shifted post-pandemic?
Hospitality industry analysts view the 2025 figures as a sign of stabilization in the luxury coastal segment. While pandemic-induced revenge travel fueled record occupancy rates and price surges from 2021 through 2023, the market now appears to be finding a new equilibrium. Short-term rental competition, increased international travel options, and evolving consumer behavior are all contributing to this recalibration.
Travel intelligence firm STR reported earlier this summer that average daily rates (ADR) across U.S. upscale hotels fell by 2.6% year-over-year in Q2 2025, while occupancy rates remained steady at around 71.4%. The combination of flat occupancy and declining rates suggests that hotels are now more actively competing for a more price-conscious, experience-driven traveler.
Meanwhile, luxury hoteliers in locations like Nantucket and Martha’s Vineyard may remain insulated from these pressures. With limited inventory, seasonal exclusivity, and high repeat visitation rates, these island markets may maintain high barriers to entry for budget-conscious tourists, ensuring that per-room revenue remains high even amid broader softness.
What can travelers expect in upcoming seasons?
Looking ahead to fall and winter travel, analysts expect price compression in secondary destinations and further price rationalization in urban markets. However, top-tier summer destinations are likely to retain their premium standing. Industry experts forecast that Northeast coastal towns will continue to dominate peak-season pricing due to climate preferences, exclusivity, and generational wealth dynamics that insulate them from short-term economic fluctuations.
Real estate data also supports the pricing power of these destinations. According to Zillow, the median home price in Nantucket crossed $3.5 million in July 2025, while Martha’s Vineyard posted a median above $2.2 million. These figures reinforce the supply-demand imbalance that defines both short-term rentals and hotel operations on these islands.
From a hospitality investment standpoint, the continued pricing strength in legacy destinations may encourage reinvestment in property upgrades and elevated service offerings. However, the barriers to large-scale development in these coastal zones mean most new supply will be incremental, keeping prices elevated over the medium term.
Industry signals and investor takeaways
Although Cheaphotels.org’s survey is consumer-facing, the results offer valuable indicators for hospitality investors, REITs, and travel tech firms. The resilience of luxury travel pricing in legacy Northeast markets provides confidence in regional ADR stability, particularly for boutique chains and branded soft-collection hotels.
The decline in prices across some previously hot markets also signals potential value opportunities for opportunistic buyers or hotel managers looking to reposition assets. Meanwhile, operators in destinations with softening demand may need to adopt more dynamic pricing models and focus on off-season experiences to stabilize revenue.
On the tech front, companies like Expedia Group (NASDAQ: EXPE), Booking Holdings (NASDAQ: BKNG), and Airbnb (NASDAQ: ABNB) could see seasonal user shifts reflected in platform engagement data, particularly if travelers shift from traditional hotels to alternative lodging options in high-cost destinations.
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