U.S. hotel growth holds up as summer gains begin to cool

U.S. hotels continued to generate more revenue in August than a year earlier, but the pace of growth eased from the stronger gains recorded in June and July.

HVS, an industry hospitality consultancy, reported Aug. 27 that national revenue per available room, or RevPAR, rose 6.8% in the trailing 28-day period ending Aug. 15. That compared with an 8.2% increase in July. HVS said weekly RevPAR gains averaged about 8% in June and early July before cooling to roughly 6% to 7% in August.

The figures do not show a national hotel downturn. They show a lodging market that is still expanding, but with performance becoming more uneven by hotel category, timing and source of demand.

Demand is contributing more to recent gains

CoStar, reporting STR data, said U.S. hotel RevPAR increased 6.2% year over year during the week of Aug. 9-15. The result marked the industry’s 19th consecutive week of RevPAR growth.

Average daily rate, or ADR, rose 3.5%, while occupancy increased 1.7 percentage points and demand grew 3%. CoStar said demand had increased by more than 3% for three consecutive weeks, the first such run since 2023.

ADR remained the primary driver in the latest weekly results, but the occupancy and demand figures indicate that more rooms were being sold as well. That makes the recent growth less dependent on price increases alone, even though rates remain an important part of the revenue gains.

Growth was concentrated on weekdays. Sunday-through-Thursday demand accounted for roughly 80% of the week’s total demand increase, supported by group and transient travel. Group demand at luxury and upper-upscale hotels rose 3.1%, extending a five-week growth streak that CoStar linked to continued convention and large-conference activity.

CoStar said transient demand was the larger contributor to weekday gains, suggesting that business travel is improving across many markets. Vacation demand, major events and market-specific activity also remain part of the national picture.

Luxury properties are outperforming economy hotels

HVS said the strongest RevPAR growth has been concentrated in luxury and upper-upscale hotels, with gains weighted heavily toward higher room rates. Growth has been more modest in upscale and upper-midscale properties, while RevPAR in the economy segment has been essentially flat.

CBRE‘s second-quarter report offered a similar national backdrop. Hotel occupancy increased 0.8% year over year as demand rose 1.7% and supply grew 0.4%. ADR increased 4.4%, driving a 5.7% RevPAR gain. CBRE also reported that job openings per hotel declined to 14 in May, down 13% from a year earlier and 8% from 2019 levels.

Those figures are a reminder that stronger hotel revenue does not automatically translate into higher wages, easier hiring or better working conditions. Revenue performance and labor conditions are related business questions, but they are not the same measure.

Why the summer pace is cooling

HVS identified several overlapping sources of growth, including conventions, business travel, vacation demand, group bookings, major events and World Cup-related activity. The consultancy said World Cup events and heightened vacation travel benefited June through mid-August, while CoStar said recent gains have broadened beyond the tournament to include business travel, conferences and other events.

HVS expects the second half of August to be quieter as families shift their focus to the start of the school year. It also expects the one-time World Cup effect to fade. A busy fall convention calendar, however, could support demand from September through November.

HVS forecasts 4.5% U.S. RevPAR growth for all of 2026. That is a forecast, not a final result.

What it means for travelers, operators and workers

For travelers, the national picture suggests that room-rate pressure may continue, especially around conventions, group events and major travel markets. A moderating national growth rate does not guarantee lower prices on specific dates or in specific destinations.

World Cup-related demand has also been uneven. Earlier Associated Press reporting found that hotel bookings in several U.S. host markets were running behind typical seasonal levels, while operators in other markets reported flat or modestly higher demand. That context supports treating the tournament as one contributor to hotel performance, not the sole explanation for the national summer increase.

For hotel operators, the next test is whether fall conventions and business travel can offset the normal late-summer slowdown and the fading World Cup effect. Host Hotels & Resorts, in an Aug. 5 filing with the Securities and Exchange Commission, reported 7% comparable RevPAR growth in the second quarter and raised its full-year 2026 comparable hotel RevPAR growth guidance to 4.75% to 5.25%.

Host’s results cover its own portfolio rather than every U.S. hotel, but they provide an operator-level cross-check on the broader trend: lodging demand and revenue remain positive, while the fastest summer gains are beginning to moderate.

Sources

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