Market Trends

🗺 Phocuswright and Arival research surveyed 1,200 LATAM travelers, revealing unique trends in the region. Relaxation and family time are prioritized over authenticity and niche travel. Nearly 50% of trips involve children, doubling the rate in the U.S. and Europe. Experiences influence destination choices in Brazil and Mexico. AI is used for trip planning by 70% of travelers, but trust remains the primary factor in booking decisions.

📍 Extended Stay America held its annual owners conference in Dallas, Texas, concluding with awards for franchise excellence. Since launching its franchise program in 2018, the company has more than doubled its hotel count. Honorees included Extended Stay America Premier Suites Bradenton (Best New Development & Ramp Up) and Extended Stay America Suites Buffalo – Airport (Most Improved Hotel). The theme, "Aligned and Activated," emphasized collaboration to drive growth.

📈 August 2026 in Rio de Janeiro saw its hotel industry achieve the highest RevPAR since the 2016 Olympics. Hotel occupancy was 72.7% (-0.1% year-over-year), with an ADR of BRL841.91 (+16.4%) and RevPAR of BRL612.29 (+16.3%). On August 19, during the CONMEBOL Libertadores match, occupancy peaked at 88.2%, elevating ADR to BRL825.44 and RevPAR to BRL728.40. The Festival Medio y Medio on August 15 led to the month's highest ADR of BRL952.24, with RevPAR at BRL756.51 and 79.8% occupancy.

🏨 In a study of over 1,900 U.S. hotels, O’Neill and Mattila found that occupancy has a notable relationship with net operating income as a percentage of revenue. Nonetheless, Liu, Wu, and Li discovered that high occupancy might sometimes weaken guest experiences. Revenue metrics like occupancy and ADR remain vital, but assessing operational signals—like overtime trends and service disruptions—completes the performance picture. Success requires aligning market positioning, demand, cost structure, and operational capability for sustained profitability.

🏠 Hotels in the U.S. experienced their best summer since 2019 with June RevPAR up 8.4% and July up 8.2%, reflecting 20 straight weeks of growth. World Cup host cities saw ADR rise by approximately 15%. STR's 2026 RevPAR growth forecast increased from 0.5% to 4.4% within nine months. Supply growth is just 0.5% with 140,000 rooms under construction, compared to 220,000 in 2019. CoStar Group attracted over 139 million average monthly unique visitors in Q4 2025.

💰 Last week, Sloan Dean highlighted AI-Native Services (AINS) in his newsletter. OTAs take 12-25% of bookings, brands take 11-12% in fees, and operators take 2.5-3.5% of gross revenue. Despite an 8% RevPAR growth in June and July, profit margins are shrinking. Labor costs rose 12.8% in 2025, but labor efficiency improved in Q1 2026, with a 1.8% rise in cost per occupied room and a 2.3% drop in hours per room. Undistributed expenses outpace revenue, compressing GOP margins. STR forecasts a 1% GOP growth in 2027 amidst inflation concerns.

🏨 Asia Pacific's hotel market saw transactions soar to USD 17.0 billion in 2025, a 51.9% increase from 2024. Singapore led with an average hotel pricing of USD 656,000 per key. Japan recorded 92 hotel transactions, largely midscale and economy, while international travel surged with Japan and South Korea hitting record visitor numbers. Luxury hotel prices rose 24% to USD 585,000 per key, driven by constrained supply. Economic pressures have shifted investor focus to acquiring existing assets.

📈 Adelaide's hotel industry achieved record revenue per available room (RevPAR) in August 2026 due to two events. On 22 August, a concert by London Calling increased occupancy to 86.8%, ADR to AUD217.70, and RevPAR to AUD189.03. The Day Hospitals Australia National Conference from 25-27 August resulted in 84.3% occupancy on the second night, with a first-night ADR of AUD216.19 and RevPAR of AUD181.75. Overall, August occupancy was 72.4%, ADR was AUD192.16, and RevPAR was AUD139.13.

🌍 At the Arabian Travel Market in Dubai, hotel operators expect tourism recovery by late 2027, not 2026, with a 10-15% business decline. Occupancy is rising (70s-80s%), but room rates are down 5-8%. Demand from Europe and the U.S. has dropped, with growth in Gulf and short-haul markets insufficient. Dubai saw 6.97 million visitors in the first eight months of 2026 compared to 12.54 million in 2025, and August occupancy fell to 66% from 78.5%.

🏨 In 2015, Neil Shah bought a 45-room hotel in Sedona for $6.2M, generating $900,000 annually. By 2018, revenue doubled to $1.8M without renovations. He identified opportunities like varying room types and rates. In 2018, investors recovered their investments. After 11 years, renovations began, transforming spaces like a gym into a salt room, boosting average rates by $30 per night. Neil’s strategic changes led to success without immediate renovation.