- RevPAR rose in 24 of 25 markets.
- World Cup added $680 million in room revenue.
- CBRE sees RevPAR growth slowing in 2027.
U.S. HOTELS ARE recovering in 2026, but event-driven gains may make next year a tougher test, according to HVS. Economic uncertainty and a thinner event calendar cloud the outlook for 2027.
The 2026 HVS Lodging Tax Report – USA, released Oct. 26, found room revenue across 25 markets ranked by city population rose 7.8 percent to about $37.3 billion through August. RevPAR rose in 24 of them.
Nationally, occupancy rose 1.4 percent year over year, ADR increased 3.4 percent and RevPAR climbed nearly 5 percent. The rebound follows a softer 2025, when lower occupancy and slower ADR growth produced a slight national RevPAR decline.
In 2025, 10 of the 25 markets recorded room revenue growth, Philadelphia was flat and 14 declined. San Francisco led with a 14.5 percent increase, followed by New York at 6.8 percent, Oklahoma City at 6.4 percent and Columbus at 5.8 percent. Las Vegas fell 10.4 percent, Houston 8.7 percent and El Paso 7.3 percent.
Growth remains concentrated
Room revenue remains concentrated, with New York and Las Vegas leading 25 markets.Photo credit: HVS
The 25 markets generated about $54 billion in room revenue in 2025, with more than 40 percent from New York and Las Vegas, HVS study said. New York alone generated more than four times Chicago’s room revenue, while nine markets below $1 billion together accounted for about 10 percent.
New York and Boston exceeded $200 in RevPAR, about four times Oklahoma City’s level. Boston ranked second in RevPAR but seventh in room revenue, while Las Vegas and Houston ranked among the top 10 by revenue despite lower RevPAR.
Events drove much of the 2026 growth. San Francisco RevPAR rose 21.5 percent and San Jose’s 18 percent, supported by technology and AI conventions, Super Bowl LX and FIFA World Cup matches in Santa Clara. Austin was the only market to decline after its convention center closed for redevelopment, while New York and Las Vegas posted moderate gains.
HVS estimated the World Cup generated $680 million in incremental room revenue across 11 U.S. host markets. New York accounted for $339.2 million, or $42.4 million per match. Boston ranked second per match at $9.9 million, ahead of Los Angeles and Kansas City outperformed Houston and San Francisco on total and per-match revenue.
Tax gains and the 2027 test
Lodging tax growth may slow in 2027 without a comparable event boost.Photo credit: iStock
Lodging tax growth slowed before the 2026 rebound, the report said. State lodging and sales tax revenue from hotel rooms rose 2.5 percent in 2025, after gains of 4.1 percent in 2024 and 18.2 percent in 2023.
HVS said this year’s RevPAR gains point to a recovering tax base, but with no comparable event in 2027, collections may grow below historical trends.
CBRE expects growth to slow, forecasting RevPAR gains of 2.5 percent in 2026 and 2.1 percent in 2027. Hotel construction has declined for 15 consecutive months, with inventory projected to grow 0.7 percent a year over the next three years, which limits new competition for existing owners.
Separately, hotel and travel groups joined Hollywood organizations in backing a proposed 20 percent federal tax credit for film and television production, arguing that domestic filming generates hotel demand and tourism in local communities.
