Market Trends

🏠 Sonesta International Hotels achieved a remarkable 26% franchise net unit growth in 2025, driven by organic growth and the sale of 112 SVC properties with long-term franchise agreements. In 2023, Sonesta introduced four new brands, including The James and Sonesta Essential Hotels, expanding their 13-brand portfolio. This growth highlights Sonesta's franchisee-friendly, relationship-first approach, ensuring its strong position in the competitive hotel market.

📈 Arlington, Virginia—At the Americas Lodging Investment Summit, CoStar and Tourism Economics revised the 2026-27 U.S. hotel forecast. In 2026, occupancy, ADR, and RevPAR each increased by 0.1%, while supply growth decreased by 0.2% and demand dropped by 0.1%. RevPAR is projected to rise by 1.4% in 2027, below the long-term 3.0% average. The 2026 forecast anticipates stronger top-line performance and supportive conditions despite a softer job market and expense growth outpacing inflation.

🏨 As of Q4 2025, the U.S. hotel construction pipeline had 6,146 projects with 720,089 rooms, according to Lodging Econometrics. Projects under construction were 1,088, with 134,380 rooms. The early planning stage had 2,883 projects and 331,959 rooms. Brand conversions hit a record 1,497 projects (148,981 rooms), a 12% YOY increase. New hotels in 2025 totaled 640, expanding supply by 1.3%. Expected growth includes 708 hotels in 2026 and 824 in 2027.

🏨 Hotel development in 2026 is focused on Southern Europe, Greater China, and North America's secondary cities. These regions are capitalizing on deployable formats and asset-light agreements to mitigate execution risks while maintaining pricing power.

🏨 Dallas, Q4 2025, U.S. hotel construction pipeline: Dallas leads with 193 projects/23,720 rooms; Phoenix tops under construction with 35 projects/4,829 rooms. Dallas has 74 planned starts and 85 in early planning. Q4 2025: Houston/Atlanta lead renovations with 35 projects. 285 new announcements: Phoenix leads. 2026: Phoenix to open 23 hotels, New York 22. 2027 projected: Dallas leads with 37 hotels, followed by Atlanta's 28. South and Southwest dominate hotel construction.

💸 The Top 10% and Top 1% of American households now account for over 50% of U.S. consumer spending. By 2026, their leisure travel spending is projected to reach $544 billion. The report, based on surveys conducted in 2025, shows the Top 10% take 4.3 trips yearly and spend $7,900 per trip, while the Top 1% take 6 trips spending $12,400. Wellness travel, luxury cruising, and geographic shifts such as Costa Rica's rise are reshaping luxury travel dynamics.

💰 CoStar and Tourism Economics revised the 2026-27 U.S. hotel forecast at the Americas Lodging Investment Summit. For 2026, occupancy, ADR, and RevPAR increased by 0.1 ppts, while supply growth decreased by 0.2 ppts, and demand dropped by 0.1 ppts. RevPAR is projected to grow by 1.4% in 2027 but remains below the long-term average of 3.0%. The World Cup will boost travel, and expenses are expected to rise slower than 2025 but still outpace inflation.

🏨 11-17 January 2026, Arlington, Va.: The U.S. hotel industry showed positive growth in key metrics. Occupancy rose to 56.1% (+0.7%), ADR reached $157.21 (+0.9%), and RevPAR achieved $88.19 (+1.6%). Minneapolis led occupancy gains at 51.6% (+12.2%) and RevPAR at $63.93 (+17.4%). Miami's ADR increased to $287.54 (+11.8%). Philadelphia saw a 21.8% rise in RevPAR, while Washington, D.C., experienced declines in ADR (-31.3%) and RevPAR (-32.1%).

🗺 Luxury travelers plan to increase travel spending in 2026, with 79% intending to spend more than in 2025. The survey by Flywire Corporation reveals that 38% more travelers take 5+ vacations annually compared to last year. 91% prefer seamless payment experiences, while 60% favor prepaid, discounted accommodations. Younger travelers, under 45, drive wellness tourism, with 97% interested in stress-reducing trips. Travel advisors remain essential for 97% of travelers to craft personalized experiences.