U.S. Hotel and Lodging 2026: Slow growth, a stable split and AI waiting at the door.

The U.S. hotel market is navigating a period of measured growth and competing pressures. According to Phocuswright's report U.S. Hotel & Lodging Travel Market Essentials 2026, room revenue rose 1% to $207.9 billion in 2025, with average daily rates (ADR) up just 1% and occupancy falling to 62.3%—the first decline since 2020. The number of rooms sold was essentially flat.
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