U.S. Hotel Industry Sees Revenue Growth as Major Markets Gain Momentum

The latest hotel performance figures show stronger occupancy, higher room rates, and rising revenue, with San Francisco leading growth across key markets

Arlington, Virginia, October 16, 2026 – The U.S. hotel industry continued to record positive year-over-year growth during the week ending October 10, according to the latest data from CoStar. Higher occupancy, rising room rates, and stronger revenue per available room indicate that demand remained firm across much of the market.

For the week of October 4 to October 10, hotel occupancy across the United States reached 70.6 percent, an increase of 2.3 percent compared with the same period in 2025. The average daily rate (ADR) rose 4.1 percent to $179.58, while revenue per available room (RevPAR) increased 6.5 percent to $126.79. These figures suggest that hotels benefited from both stronger room demand and higher prices.

San Francisco recorded the strongest performance among the 25 largest U.S. hotel markets. Occupancy climbed 10.6 percent to 88.5 percent, while the average daily rate increased 18.5 percent to $274.02. Revenue per available room rose 31.1 percent to $242.53. The city hosted Tech Week and Fleet Week during the reporting period, events that likely contributed to increased demand for accommodation.

Chicago also reported substantial gains. Occupancy increased 6.8 percent to 82.7 percent, while RevPAR rose 21.1 percent to $210.18. The city benefited from events including the APTA TRANSform & EXPO and the ACEP Scientific Assembly, which brought visitors and business activity to the area.

Across the 25 largest hotel markets, 17 recorded an increase in revenue per available room compared with the corresponding week a year earlier. This indicates that growth was widespread, although performance varied between destinations.

The three main measures offer different insights into hotel performance. Occupancy tracks the proportion of available rooms that are sold. Average daily rate measures the average price paid for occupied rooms. RevPAR combines room rates and occupancy to show how much revenue a property generates for each available room. Looking at these indicators together helps hotel operators understand whether growth comes from attracting more guests, charging higher rates, or both.

For hotel owners and operators, the latest results provide useful signals for pricing, staffing, and revenue management. Strong demand can create opportunities to improve earnings, but operators must also consider labor costs, operating expenses, local competition, and changes in travel patterns.

The results also highlight the importance of major events to local hospitality markets. Conferences, exhibitions, and citywide celebrations can increase room demand over a short period, giving hotels opportunities to adjust prices and manage inventory. However, event-driven gains may not continue once the calendar changes.

As the year progresses, hotel businesses will be watching whether higher room rates and occupancy can be sustained across more markets. The latest figures point to continued momentum in U.S. hotel performance, while differences between cities show why local demand and event calendars remain important to the industry's outlook.

• By Editorial Panel
• 22 Oct 2026