Overview
- CoStar and Tourism Economics formally upgraded their 2026–27 outlook at the industry conference, forecasting 2026 demand growth of 1.7% versus 0.4% supply growth, occupancy of 63.1%, ADR up 3.1% and RevPAR up 4.4%.
- STR said the industry sold a record number of room nights in the first half of the year, with room nights up 11.4 million versus 2025 and room revenue up more than $5.4 billion, a key driver of the forecast revisions.
- CoStar weekly performance data show national hotel occupancy, rates and RevPAR rising year over year with occupancy at 71.3%, ADR about $169 and RevPAR about $120, while market results vary sharply between strong gains in Philadelphia and St. Louis and steep declines in Las Vegas.
- Nominal gross operating profit per available room (GOPPAR) is now above its 2019 benchmark and is projected to rise roughly 4% in 2026 and 1% in 2027, yet inflation‑adjusted GOPPAR remains below pre‑pandemic levels as operating expenses are expected to rise faster than inflation.
- Tourism Economics says a stable labor market, recent wealth gains and easing inflation should support continued travel growth, though prolonged U.S.–Canada trade tensions and tough year‑over‑year comparisons in mid‑2027 could slow international and group demand and constrain further rate and profit gains.