For the data behind the commentary, download the full Q4 2025 U.S. Hospitality Report.
Q4 2025 Hospitality Key Trends
- RevPAR Outlook: The U.S. hospitality market ended 2025 with a 0.3% annual decline in RevPAR. Looking ahead to 2026, RevPAR growth is expected to remain modest, with forecasts generally in the 0.5%-1.0% range. Growth will be driven primarily by ADR increases of 1.0%-2.0% while occupancy is projected to soften slightly. Overall, this outlook suggests a stable but subdued growth environment.
- Industry Strategies: Recent announcements from Marriott, Hilton, and Hyatt highlight a shared industry focus on conversion-led growth, luxury and lifestyle segments, and expansion to new markets through flexible brand platforms, all while continuing to operate under asset-light development models.
- Extended Stay Momentum: Extended stay hotels continue to attract developers and investors due to their consistent, resilient demand, lower operating costs, and notably large share of the current development pipeline.
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AI Integration: Hotel owners and operators are increasingly leveraging AI to streamline operations, enhance revenue, and elevate guest experiences. Applications include AI-driven revenue management, labor and energy optimization, 24/7 chatbots, predictive analytics, and personalized service tools that support operational efficiency, pricing, and guest satisfaction.
- Brand Standards and Renovations: Many hotels are accelerating renovations and property improvement plans to maintain brand compliance, improve guest experiences, and remain competitive, particularly in the luxury and lifestyle segments.
- Group and Event Demand Dynamics: While corporate and association group travel remains relatively steady, events in 2026 including the FIFA World Cup and large-scale convention center renovations may shift demand patterns and create new opportunities for secondary markets.
For the data behind the commentary, download the full Q4 2025 U.S. Hospitality Report.
