OCEAN CITY, Md. — Hotel and short-term rental occupancy rates in Ocean City declined in March 2025 compared to the same month last year, according to the town’s latest tourism report.
Ocean City Tourism and Business Development Director Tom Perlozzo pointed to the weather as a likely cause for the decline. “Some months, they fluctuate, up or down depending on, obviously, Mother Nature,” Perlozzo said.
Hotel occupancy dropped 10 percent compared to March 2024, while short-term rental occupancy saw a 5 percent decrease, the report showed.
Keith Whisenant, general manager at the Residence Inn in Ocean City, said he’s not worried about the downturn. “Our financials are done, and April’s much better,” Whisenant said. Whisenant also reported a surge in bookings during the Boardwalk Rock event, and expects strong numbers throughout the summer.
Despite the decline, short-term rentals continued to outperform hotels, with an occupancy rate of 38% in March 2025. Hotel occupancy trailed at 34.4% for the month. One realtor believes that trend is driving the town’s push to implement a five-night minimum stay in residential areas and mobile homes — a measure now headed for a public referendum.
Perlozzo, however, isn’t convinced that trend is significantly impacting hotel performance. “It’s kind of split up. I haven’t seen a huge fluctuation in that at all,” he said.
Despite slower months in February and March, Perlozzo and Whisenant are optimistic. With strong spring numbers and summer bookings already rolling in, Ocean City is expecting a rebound just in time for the busiest part of the year.