by Lacey Pfalz
Last updated: 8:35 AM ET, Wed September 2, 2026
U.S. hotel performance is expected to do well next year, but challenges remain, according to hospitality data analytics firm STR, part of CoStar.
While travel demand hasn’t waned despite U.S. inflation, 2027 isn’t expected to see increased average daily rate (ADR) or too much growth—in fact, U.S. hotel construction is the lowest it’s been in 12 years. STR expects U.S. hotel supply to grow only 0.4% year-over-year in 2026 and 0.6% in 2027.
Most of the top 25 U.S. hotel markets continue to outpace inflation, but that number drops to 42% of all U.S. hotel markets, indicating inflation is affecting hospitality.
STR’s data also found that while 25% of U.S. travel spend comes from U.S. households with a combined income of $200,000 or more, credit card delinquency is also rising, leading to lower performance for mid-scale and economy hotels.
“A 1% increase in 90-day credit-card delinquency equals a 40-basis-point decline in economy hotels overall,” said Jake Bruno, senior forecasting analyst at STR.
While things are expected to moderate for the most part as we head into 2027, corporate and group bookings for U.S. hotels are helping to buoy the hospitality industry, with AI data center construction “a major metric mover.” Luxury hotels are expected to remain popular, but occupancy is expected to remain flat year over year.
The average daily rate in 2027 is expected to remain below the inflation rate, and, despite hopeful predictions that the U.S. World Cup will sustain a boost to U.S. tourism, it won’t impact it much, according to STR.
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