Overview
- Q1 2026 showed clear momentum with average daily rate up about 6% to $202.63, RevPAR up 8.7% to $129.46, TrevPAR up 9.4% to $174.83, occupancy up 1.5 percentage points, and GOP margin rising four points to 41.8%.
- Operators have turned cautious for Q2–Q4, forecasting only a modest ADR rise of 1.6% while expecting RevPAR to fall about 1.3% and TrevPAR to drop roughly 2.6% versus the same period in 2025.
- Those forward forecasts sit below operators’ 2026 budgets, with ADR about $5.11, RevPAR about $5.89, and TrevPAR about $12.02 under budget, signaling pressure on planned revenue targets.
- Independent weekly performance data through mid-May show ongoing short-term gains but wide market dispersion, with strong results in Orlando and San Francisco and notable weakness in San Diego and Detroit.
- The gap between chain scales is widening: luxury and upper-upscale properties led gains while economy hotels lagged, which makes growing ancillary revenue such as food and beverage, resort fees, and parking—captured in TrevPAR—central to preserving profits and staffing levels.