The U.S. hotel industry has received a brighter forecast after a cautious start to the year. Analysts now expect stronger revenue per available room growth in 2026, giving hotel owners and operators a more optimistic view of the second half.

Travel Weekly reported that CoStar and Tourism Economics revised their 2026 U.S. hotel forecast, lifting expected RevPAR growth to 2.8 percent from a much lower earlier estimate. The revision came after first quarter performance proved better than expected despite inflation, oil price pressure and weaker consumer sentiment.

RevPAR matters because it combines occupancy and room rate into one key measure. A hotel can perform well by filling more rooms, charging more per room, or both. When RevPAR expectations improve, it suggests the industry may have more pricing strength or demand resilience than previously believed.

The forecast also shows a two speed travel economy. Luxury and higher end properties have often performed better because affluent travelers keep spending. Budget and midscale hotels can feel more pressure when consumers become careful. That split mirrors trends in airlines and retail, where premium demand remains stronger than value demand.

The World Cup and anniversary travel may support certain markets, but forecasters noted that some of the improved outlook was already developing before the tournament’s full impact. For hotels, the key question is whether momentum can continue after major events end. A better forecast gives the industry room to breathe, but operators still need discipline. Demand is improving, not guaranteed.