CBRE Hotels Research has upgraded its full-year 2026 projection for US hotel revenue per available room (RevPAR) growth to 2.5% year over year, up from a forecast of 1.2% at the beginning of the year.
In a midyear update, the data and analytics provider said the revision was driven by a “meaningful recovery” in business transient and group travel. Convention-linked RevPAR grew 5.4% year over year by April. Excluding the effects of World Cup, CBRE expects business transient and group travel to contribute to more than half of 2026 U.S. RevPAR growth.
The markets positioned to benefit most from business travel and group recovery, according to the research, are technology hubs such as the San Francisco Bay Area; and AI data center construction markets, including Memphis, Houston and St. Louis.
CBRE expects full-year 2026 RevPAR growth at luxury properties to hit 5.2%, significantly outpacing midscale (up 0.7%) and economy, which is forecast to decline 0.6%.
