- Luxury hotels led the U.S. market in H1.
- Economy hotels saw declines.
- RevPAR fell in 2025 before rebound.
LUXURY AND UPPER-UPSCALE hotel brands led U.S. hospitality performance in the first half of 2026, outpacing economy properties, according to Colliers. The market regained momentum after RevPAR fell 0.2 percent and occupancy fell 1.2 percent in 2025.
The study, “U.S. Hospitality Brand Performance Comparison Report,” found trailing 12-month RevPAR rose 1.8 percent by midyear, its highest level since May 2025. June RevPAR rose 8.4 percent, driven by a 6.7 percent increase in ADR and a 1.6 percent gain in occupancy.
Luxury hotels posted 13.3 percent year-over-year RevPAR growth, while economy hotels declined across occupancy, ADR and RevPAR, the report said. Across Hilton Worldwide Holdings, Hyatt Hotels Corp., Marriott International and IHG Hotels & Resorts, luxury and experience-led brands recorded double-digit RevPAR growth, led by LXR Hotels & Resorts, The Unbound Collection by Hyatt, Kimpton, W Hotels and Atwell Suites.
FIFA World Cup demand drove about 13 percent RevPAR growth across the U.S. host-city markets. Midscale and upper-midscale hotels also showed signs of stabilization as supply pressures eased.
Hilton's RevPAR rose 4.7 percent. System-wide, RevPAR rose 3.9 percent, with occupancy up 1.3 percent and ADR up 2.0 percent. LXR Hotels & Resorts posted 12.9 percent growth, driven by a 4 percent occupancy increase and 5.9 percent ADR growth to $506.30. Waldorf Astoria's ADR reached $492.15, though RevPAR declined 0.1 percent, while Conrad Hotels & Resorts grew 1.2 percent. Tapestry Collection by Hilton rose 8 percent, Graduate by Hilton 6.7 percent, Home2 Suites by Hilton 5.6 percent and Tru by Hilton 4.5 percent.
Hyatt reported 5.7 percent system-wide RevPAR growth, led by its lifestyle and leisure brands, the study said. The Unbound Collection by Hyatt rose 12 percent, with occupancy up 4.8 percent. Park Hyatt grew 9.5 percent, with an ADR of $481.36, while Grand Hyatt and JdV by Hyatt gained 8.1 percent and 9.1 percent, respectively. Hyatt Place and Hyatt House posted occupancy of 70.3 percent and 74.5 percent.
IHG's Americas fee business posted 4.8 percent RevPAR growth, led by Atwell Suites at 22.7 percent, the report said. Kimpton rose 15.0 percent on 8.7 percent ADR growth, while InterContinental grew 10.2 percent and Hotel Indigo 6.9 percent. IHG's midscale brands also stabilized: Candlewood Suites posted 4 percent RevPAR growth, and Holiday Inn Express rose 3.5 percent, with occupancy steadying across both brands and Holiday Inn as supply pressures eased.
Marriott reported 4.6 percent RevPAR growth across its U.S. and Canada system. The Ritz-Carlton rose 7.8 percent, with ADR up 5.8 percent to $609.82. W Hotels grew 10.8 percent, with ADR up 8.5 percent to $422.64, while JW Marriott rose 5.7 percent, Courtyard 4.0 percent and Fairfield 3.5 percent.
Across all brand scales, first-half occupancy was 69.6 percent, ADR was $173.76 and RevPAR was $120.97. Luxury hotels posted 72.5 percent occupancy, $419.39 ADR and $290.42 RevPAR, compared with 58.3 percent occupancy, $82.18 ADR and $47.94 RevPAR for economy hotels.
Colliers recorded 138,887 rooms under construction and 69,172 delivered over the past 12 months. It said mid-market segments faced limited pricing power, softer demand from budget-conscious travelers and continued supply growth, with economy and upper-midscale deliveries peaking in mid-2025 and midscale deliveries in early 2026.
A Future Partners report found that U.S. travelers are more concerned about a recession, while travel activity remains above year-earlier levels. More travelers are taking spontaneous trips and using AI and social media to research and plan travel.
