Hoteliers are sighing in relief as the latest industry data shows positive recovery momentum.
For the fourth time this year, hotel revenue per available room rates have seen a double-digit year-over-year gain.
During the week of Sept. 13-19, the industry reported a 10.4% year-over-year RevPAR increase, according to data released by CoStar. The average daily rate was up 5.7% to $179.30, the highest nominal weekly ADR ever recorded in the U.S.
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While the week coincided with Yom Kippur holiday travel, CoStar said it wasn’t the primary driver of the improvement. The report shows that luxury and upper-upscale group demand led demand, with 2.5 million nights sold.
More noteworthy, the increase wasn’t isolated to just a handful of markets. CoStar states that 89% of the U.S. hotel markets saw higher year-over-year RevPAR, while 79% also saw increases in ADR and room demand.
The hotel industry has seen stronger-than-expected performance this year. After a strong first half of the year, in which a record number of rooms were booked, CoStar and Tourism Economics updated their projections in August. U.S. RevPAR growth was projected to be 4.4%, up from an initial projection of 2.8%. ADR is expected to grow 3.1%, up from an initial projection of 2%, and occupancy is now projected to reach 63.1%, up from 62.8%.
One factor behind the improved performance was the FIFA World Cup. While it didn’t deliver the results hoteliers hoped for, year-over-year performance still increased. Around marquee matchups, CoStar reported a RevPAR increase of more than 40%.
While it is believed that 2027 will continue to build on 2026’s momentum, Amanda Hite, president of CoStar's STR hospitality benchmarking arm, noted an expected slump in year-over-year comparisons next summer due to the lack of a major national event.
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