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Supply will shape California hotel performance

Demand continues to recover, but pricing power will define revenue per room
CoStar Analytics
January 6, 2026 | 7:29 P.M.

California hotel performance is expected to diverge more sharply by region in 2026, with revenue per available room, or RevPAR, outcomes increasingly shaped by supply growth and pricing power rather than pure demand recovery.

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News | Supply will shape California hotel performance