CoStar and Tourism Economics lift U.S. hotel growth projections
Forecasting firms have increased their revenue per available room and average daily rate expectations for 2026-27, signaling stronger-than-anticipated performance for American lodging properties.
Two leading hospitality analytics organizations have revised their near-term projections for the United States hotel sector upward, according to forecasts presented at the Hotel Data Conference this week.
CoStar and Tourism Economics announced enhanced outlook figures for the 2026-27 period, adjusting revenue per available room expectations higher by 1.6 percentage points while increasing average daily rate forecasts by 1.1 percentage points compared to earlier predictions. The revised metrics suggest the domestic lodging industry will experience more robust pricing power and occupancy trends than previously modeled.
The firms' updated analysis projects gross operating profit per available room will climb 4 percent during 2026, reflecting improved operational efficiency alongside the anticipated revenue gains. The positive adjustment indicates forecasters now expect stronger fundamental demand conditions and potentially more favorable cost dynamics across American hotel properties over the next two years.
The upward revision comes as the hospitality sector continues navigating post-pandemic recovery patterns and evolving traveler behavior. While the specific drivers behind the improved forecast were not detailed in the conference presentation, such adjustments typically reflect reassessments of economic growth trajectories, business travel recovery rates, or leisure demand strength.
Both CoStar and Tourism Economics provide widely referenced data and projections used by hotel operators, investors, and developers for strategic planning purposes. Their coordinated forecast upgrade may influence capital allocation decisions and expansion strategies across the lodging industry in the coming quarters.