CoStar, Tourism Economics raise U.S. hotel growth forecast

ARLINGTON, Va. – 1 June 2026 – CoStar and Tourism Economics made significant adjustments to the 2026-27 U.S. hotel forecast.

For 2026, projected gains in average daily rate (ADR) and revenue per available room (RevPAR) were upgraded 1.0 ppts and 2.2 ppts, respectively. Occupancy for the year is now expected to grow after the previous forecast projected a year-over-year decline in the metric. 

"The cautious optimism that framed our outlook earlier in the year has made way for a more robust forecast, driven by stronger demand from both the group and transient segments,” said Jan Freitag, national director of hospitality analytics at CoStar Group. “Since our last revision, the industry has seen sustained performance growth, with room demand up by more than 8 million room nights year over year through the first four months of 2026. For the remainder of the year, we expect a moderation in demand growth, but the pace will remain conducive for solid ADR and RevPAR gains, even though both will continue to increase below the rate of inflation.”

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“Travel activity appears resilient heading into the summer. Stable job markets and rising household wealth are supporting leisure travel demand despite higher fuel prices,” said Aran Ryan, director of industry studies at Tourism Economics. “Group travel is also improving alongside robust corporate profits, while international visitation remains weak with hopes of a World Cup bounce. Looking ahead, easing inflation should support a modestly stronger economy next year.”

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“GOP is expected to rise on increasing total revenues, with the largest growth contribution coming from the rooms department,” said Freitag. “However, expenses are anticipated to grow at a higher rate, resulting in a continued squeeze in profit margin.” 

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, Industry Studies
+1 610 995 9600
aran.ryan@oxfordeconomics.com

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 131 million unique monthly visitors in the first quarter of 2026, 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 for 2026 are inaccurate, and the risk that these metrics 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, 2025 and Form 10-Q for the quarterly period ended March 31, 2026, 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.