Best Quarter in a Year After a Weak 2025

In 2025, international demand papered over a softer U.S. performance by major hotel groups. First quarter 2026 might be the opposite. 

The major hotel groups will likely report that U.S. hotels had their best quarter in a year. That would be consistent with the first-quarter picture painted by industry-wide CoStar data. 

Revenue per available room, or RevPAR, grew 3.6% in the first quarter, with both occupancy and room rates contributing to the growth.

Performance at upper-midscale hotels turned positive in the U.S. for the first time since 2024.

Economy-segment hotels clawed back to roughly flat year over year after a tariff-induced beating.

Expect analysts to quiz executives for any hints from April data or advance bookings about how the rest of 2026 might stack up.

7 Number of Things to Watch

1. Midmarket Hotels

Hilton CEO Chris Nassetta thinks a rebound is coming beyond just luxury hotels. At this month’s Semafor World Econom