Market Trends

🏨 Top-quartile branded assets in 2026 are refinancing into competitive five-year takeouts, while weaker assets struggle with lenders. Rate strategies from 2023-2024 now create disparities in profit, with select-service hotels outperforming full-service. Midweek business rebounds, driven by secondary markets' reshoring and healthcare. PIP costs have inflated 25-40%, and insurance renewals increased by 20-40%. Construction starts are below historical averages, protecting existing assets. Strategic refinancing and asset management are crucial for 2026's market, sorting hotels into "haves" and "have-nots.

🏨 The U.S. hotel industry in Q1 2026 experienced significant growth compared to 2025. ADR increased by 6% to $202.63, RevPAR by 8.7% to $129.46, TrevPAR by 9.4%, and occupancy rose to 64.3%. GOP margin improved by 4 percentage points to 41.8%. These figures indicate stronger demand and better profit conversion, with a focus on managing demand, pricing, and costs effectively amidst ongoing challenges.

📈 U.S. hotel performance in 2026 faces uncertainty due to Iran, Israel, and U.S. conflict. Geopolitical instability suppresses travel, affecting demand. U.S. hotels could benefit from domestic travelers staying in-country and international travelers avoiding the Middle East. Increased government and defense contractor activity may boost business travel. However, corporate travel might decrease, and rising costs and financial volatility could impact profitability. Hotels focused on active demand capture and profit optimization will better navigate these challenges.

📈 Wellness in Travel & Tourism (WITT) is expanding in Asia, a rapidly growing region for travel demand projected to reach USD 204.2 billion by 2026. Vietnam's Fusion Resort & Villas Da Nang and Alba Wellness Valley by Fusion, Indonesia's Bali Niksoma Boutique Beach Resort and GDAS Bali, and Nepal's Hotel Hokke Lumbini have achieved WITT Certification. These properties focus on integrated wellness experiences. WITT evaluates nearly 200 hotels globally based on 100+ criteria to maintain wellness standards.

📍 Canadian hotels are set for a promising summer amid political and economic uncertainty. The 2026 FIFA World Cup in Toronto and Vancouver will boost tourism and spending. Taylor Swift’s 2024 Toronto tour increased hotel occupancy to 80.7%, spurring $282 million in economic growth. Hotel demand rose 28% this year, with domestic travel bolstered by safety and stability concerns. Canada's international arrivals reached 6.8 million in 2025, up 7.5%. New hotel supply is expected to exceed 1.5% in 2026.

📍 Accor has surpassed 150 franchise hotels in Australia and New Zealand. The milestone coincides with the Accor Pacific Franchise Conference in Sydney, gathering over 270 participants. Accor's Pacific franchise network has significantly expanded over the last decade, driven by demand for global brands. Half the franchise partners own multiple hotels. The group is introducing the "greet" brand to the Pacific, emphasizing informal hospitality. Franchise growth complements Accor’s managed hotel strength, offering flexible models for owners.

📦 In 2016, Gorjan Lazarov became CEO of Orea Hotels and Resorts. At the time, Orea's website generated nearly zero revenue. By focusing on direct bookings and brand investment, the website now accounts for 60% of revenue. Orea's brand awareness in the Czech Republic is the highest among domestic hotel groups. Two-thirds of the group's guests are now Czech nationals, up from one-third during COVID. Orea predicts guest arrivals with 90% accuracy using its data model.

🏠 Dubai-based Select Group acquired three Delta-branded hotels in the UK, totaling 380 rooms, from KKR and Baupost Group. The properties, located in Wales, Kent, and Derbyshire, were part of a £869.2 million portfolio bought in 2024. Covivio purchased the 440-room Tent Torremolinos in Spain for €43.5 million, with a 7.1% yield. Fergus Group acquired Tent Lloret de Mar in Spain, while Balder Finland bought the 273-room Lapland Hotels Arena in Tampere for €40 million.