US Hospitality Directions: May 2026

The US lodging sector is entering a new growth phase in 2026 as RevPAR rebounds following a period of decline in 2025. Revenue per available room grew by 4.3% in February and 5.9% in March, signaling a reversal of the previous year's downward trend. This recovery is driven by strengthening demand across leisure, group business, and domestic travel segments despite ongoing geopolitical and inflationary uncertainties.

PwC projects that US RevPAR will grow by 2.9% in 2026, a significant improvement from the 0.2% decline seen in 2025. This shift is supported by demand growth of 3.2%, which is expected to outpace supply growth of 2.3%, creating a healthier market balance.

The recovery is also becoming more inclusive across different hotel tiers. While 2025 saw a sharp divide between high-end and economy properties, lower-priced hotels are now showing signs of a rebound as consumer confidence spreads across the income spectrum.