US Hotels Post 8.9% RevPAR Growth in H1 2026

U.S. hotels lifted revenue per available room by 8.9 percent to $144.01 during the first half of 2026, up from $132.24 in the same period of 2025 [1]. Rising average daily rates, higher occupancy, and expanded profit margins fueled the gains across the industry, according to figures compiled by HotelData and published by Lodging Magazine [1].

What drove total revenue and profit margin growth across US hotels?

Hotel top-line performance and operational conversion both strengthened during the first six months of the year [1]. Across all hotels in the HotelData sample, average daily rate increased 7.1 percent from $197.99 in 2025 to $211.96 in 2026 [1]. Occupancy climbed 1.1 percentage points to reach 67.9 percent [[1], [2]].

Total revenue per available room outpaced room-only revenue growth, rising 9.2 percent year over year from $173.41 to $189.30 [1]. Properties converted this revenue into stronger profitability, lifting gross operating profit margin by 3.6 percentage points from 41.3 percent in H1 2025 to 44.9 percent in H1 2026 [1]. Asian Hospitality noted that higher departmental productivity and reduced labor hours per occupied room helped protect bottom-line conversion despite rising labor expenses [2].

How did hotel performance accelerate in the second quarter?

Operating momentum accelerated during the second quarter as both pricing and occupancy expanded simultaneously [1]. Second-quarter ADR grew 8.0 percent to $218.41 compared to $202.27 in Q2 2025 [1]. Occupancy rose 0.9 percentage points to 71.8 percent, driving a 9.4 percent increase in quarterly RevPAR to $156.73 [1].

Second-quarter TRevPAR rose 9.2 percent to $204.48, up from $187.29 [1]. GOP margin reached 47.2 percent in Q2 2026, gaining 3.3 percentage points over the 43.9 percent recorded in Q2 2025 [1]. Every chain scale in the sample achieved positive RevPAR growth in the second quarter [[1], [2]].

How did results diverge between luxury and economy hotels?

Performance diverged sharply between high-end and budget segments throughout the first half of 2026 [1]. Luxury hotels recorded the strongest revenue gains across the industry, posting a 10.1 percent increase in ADR, a 3.4 percentage point gain in occupancy, and a 15.9 percent surge in RevPAR to $225.27 [[1], [2]]. Luxury TRevPAR rose 15.1 percent and GOP margin expanded 4.0 percentage points [[1], [2]]. In Q2, luxury ADR climbed 12.6 percent and RevPAR increased 18.4 percent [[1], [2]].

Economy hotels relied entirely on volume rather than pricing power [[1], [2]]. While H1 economy occupancy increased 4.6 percentage points to 68.5 percent, ADR dropped 9.3 percent to $109.11 [[1], [2]]. As reported by Lodging Magazine, economy was the only chain scale to record an H1 drop in RevPAR, which fell 2.7 percent, while TRevPAR slipped 1.5 percent and GOP margin dipped 0.1 percentage points [[1], [2]]. In Q2, economy RevPAR rebounded to positive 3.3 percent growth as ADR declines narrowed to 4.9 percent and occupancy climbed 5.7 percentage points [[1], [2]].

How did middle chain scales and independent properties perform?

Mid-tier properties generated steady RevPAR gains across the first half of 2026, though their drivers differed [1]. Midscale properties lifted RevPAR 4.2 percent on a 2.4 percentage point occupancy increase while rates held flat [[1], [2]]. Upper midscale RevPAR rose 3.8 percent, supported by a 2.3 percentage point occupancy increase and a modest 0.4 percent ADR increase [1].

Upscale hotels generated growth through room rates, posting a 4.2 percent ADR increase, a 4.7 percent RevPAR gain, and a 4.8 percent TRevPAR rise [[1], [2]]. Upper upscale hotels saw ADR rise 2.0 percent, RevPAR increase 3.1 percent, and GOP margin improve 2.8 percentage points [1]. Independent hotels posted a 3.3 percent RevPAR increase and a 3.6 percent lift in TRevPAR [[1], [2]].

What impact did June and the FIFA World Cup have on performance?

June delivered the highest rate growth of the first half across all hotel categories [1]. Average daily rates increased 11.4 percent year over year to $226.14, while occupancy reached 73.8 percent, up 1.1 percentage points [[1], [2]]. RevPAR grew 13.1 percent to $166.82, TRevPAR climbed 12.2 percent to $215.46, and GOP margin reached 48.6 percent [[1], [2]].

The month coincided with the kickoff of the FIFA World Cup in host markets [[1], [2]]. Luxury hotels recorded a 20.6 percent rate increase in June, lifting RevPAR by approximately 24 percent [[1], [2]]. In contrast, economy properties kept room rates flat while lifting occupancy by 4.5 percentage points, producing a 6.6 percent RevPAR increase [[1], [2]]. HotelData noted that while the tournament created pricing opportunities in host cities, its sample could not isolate the specific impact of the event [2].