What's Happening?
Lodging Analytics Research & Consulting (LARC) has released its 2Q-2026 Hotel Industry Outlook and Market Intelligence Reports, projecting a 3.4% increase in U.S. Revenue Per Available Room (RevPAR) to $103.48. This growth is driven by a similar 3.4% rise
in Average Daily Rate (ADR) to $166.05, while occupancy rates are expected to remain steady at 62.3%. Additionally, LARC forecasts a 5.4% increase in U.S. Hotel Earnings Before Tax, Depreciation, and Amortization (EBTDA), with a 50 basis points margin expansion. Hotel values are anticipated to rise by 3% in 2026, with a cumulative increase of 9% over the next five years. The report includes granular data-driven annual RevPAR forecasts for over 19,000 unique geographies across the U.S.
Why It's Important?
The projected increase in RevPAR and hotel values indicates a positive outlook for the U.S. hospitality industry, suggesting a recovery and growth phase post-pandemic. This growth can benefit hotel operators, investors, and related service industries by increasing profitability and investment returns. The stable occupancy rates alongside rising ADR suggest a strong demand for hotel accommodations, which could lead to increased employment opportunities and economic activity in the hospitality sector. The detailed geographic forecasts provide valuable insights for stakeholders to make informed decisions about market entry and expansion strategies.
What's Next?
LARC will host a webinar on June 11, 2026, to discuss the current U.S. hotel industry outlook and provide key takeaways from their market forecasts. This event will offer stakeholders an opportunity to engage with LARC experts and gain deeper insights into the factors driving the projected growth. The continued monitoring of market trends and economic indicators will be crucial for stakeholders to adapt their strategies and capitalize on emerging opportunities in the hospitality sector.
