CoStar, the parent company of hotel analytics firm STR, and travel data company Tourism Economics held their forecast for U.S. hotel performance basically steady amid a "more supportive" economic backdrop, the companies announced Monday.
The companies increased their projected 2026 U.S. occupancy, average daily rate and revenue per available room by 0.1 percentage point each from their previous forecast, issued in November. They now project occupancy of 62.1 percent, ADR to increase 1 percent year over year, and RevPAR to increase 0.6 percent.
"We expect top-line performance to strengthen in the second half of the year, although growth will remain moderate and concentrated among higher-tier hotels," STR president Amanda Hite said in a statement, adding that the FIFA World Cup would boost performance in host cities.
Tourism Economics director of industry studies Aran Ryan in a statement cited "a more supportive backdrop for U.S. travel in 2026," including the prospect of real wage gains, as a positive factor.
"Business investment will broaden beyond AI as borrowing costs ease and tax incentives support new projects," according to Ryan. "International travel faces near-term headwinds but will likely see a gradual rebound as global demand strengthens and the World Cup boosts summer arrivals."
The companies also offered their first public projection of 2027 U.S. hotel performance, including increases in ADR and RevPAR of 1.3 percent and 1.4 percent, respectively. Occupancy is forecast to increase 0.1 percentage point to 62.2. percent.
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