CoStar, Tourism Economics maintain growth projections in first U.S. hotel forecast of 2026

ARLINGTON, Va. – 26 January 2026 – CoStar and Tourism Economics made minimal adjustments to growth projections in the first 2026-27 U.S. hotel forecast just released at the Americas Lodging Investment Summit (ALIS). 

For 2026, occupancy, average daily rate (ADR) and revenue per available room (RevPAR) were each upgraded 0.1 ppts from the previous forecast. Supply growth was lowered 0.2 ppts, while demand was reduced 0.1 ppts.

“We expect top-line performance to strengthen in the second half of the year, although growth will remain moderate and concentrated among higher-tier hotels,” said Amanda Hite, STR president. “The early months of that period will be highlighted by notable gains in World Cup host markets and their surrounding areas. In addition, calendar shifts will provide a lift, especially as we move past the elevated comparables from the 2024 hurricane-affected markets.”

Growth rates are projected to rise further in 2027, but even the forecasted 1.4% increase in RevPAR would remain below the long-term average (+3.0%).

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“We expect a more supportive backdrop for U.S. travel in 2026,” said Aran Ryan, director of industry studies with Tourism Economics. “While a softer job market weighs on younger and lower-wage households, real wage gains and household wealth should keep consumer spending resilient. Business investment will broaden beyond AI as borrowing costs ease and tax incentives support new projects. International travel faces near-term headwinds but will likely see a gradual rebound as global demand strengthens and the World Cup boosts summer arrivals.”
 

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“Total revenues are expected to rise at a faster pace than last year, while expenses should follow a similar trajectory—though at a slower rate of growth than in 2025,” said Hite. “Even so, expense growth will continue to outpace inflation.”

For more information about the company and its products and services, please visit costargroup.com. 

News Media Contacts

Haley Luther
Senior Communications Manager 
(216) 278-0627
hluther@costar.com

Aran Ryan
Director, Lodging Analytics
aran.ryan@oxfordeconomics.com
+1 610 995 9600

About CoStar Group 
CoStar Group (NASDAQ: CSGP) is a global leader in commercial real estate information, analytics, online marketplaces and 3D digital twin technology. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights and connections that improve their businesses and lives.

CoStar Group’s major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; and Homes.com, the fastest-growing residential real estate marketplace. CoStar Group’s industry-leading brands also include Matterport, a leading spatial data company whose platform turns buildings into data to make every space more valuable and accessible, STR, a global leader in hospitality data and benchmarking, Ten-X, an online platform for commercial real estate auctions and negotiated bids and OnTheMarket, a leading residential property portal in the United Kingdom.

CoStar Group’s websites attracted an average of 143 million unique monthly visitors in the third quarter of 2025, serving clients worldwide. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website as a channel of distribution for material company information. For more information, visit CoStarGroup.com.

This news release includes "forward-looking statements" including, without limitation, statements regarding CoStar's expectations or beliefs regarding the future. These statements are based upon current beliefs and are subject to many risks and uncertainties that could cause actual results to differ materially from these statements. The following factors, among others, could cause or contribute to such differences: the risk that updated U.S. hotel growth projections across occupancy, ADR and RevPAR in the second half of 2026 are inaccurate, and the risk that total revenues do not increase year over year as projected.. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar’s filings from time to time with the Securities and Exchange Commission, including in CoStar’s Annual Report on Form 10-K for the year ended December 31, 2023 and Forms 10-Q for the quarterly periods ended March 31, 2024, June 30, 2024, and September 30, 2023, each of which is filed with the SEC, including in the “Risk Factors” section of those filings, as well as CoStar’s other filings with the SEC available at the SEC’s website (www.sec.gov). All forward-looking statements are based on information available to CoStar on the date hereof, and CoStar assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Tourism Economics
Tourism Economics, an Oxford Economics company, focuses on the intersection of the economy and travel sector, providing actionable insights to our clients. We provide our worldwide client base with direct access to the most comprehensive set of historic and forecast travel data available. And our team of specialist economists develops custom economic impact studies, policy analysis, and forecast models.