US Hotels Show Sustained Growth: CoStar Reports Twentieth Week

US Hotel Sector Extends Growth Streak

The United States hotel industry has now achieved its twentieth consecutive week of year-over-year performance improvements. CoStar’s latest data, covering the period through 29 August 2026, details this sustained positive trend across the national market. Occupancy rates stood at 64.1 percent, representing a 1.1 percent increase from the comparable week in 2025.

The Average Daily Rate (ADR) climbed to $157.14, showing a 0.6 percent rise. Revenue Per Available Room (RevPAR) also increased by 1.7 percent, reaching $100.69. While these figures confirm continued expansion, the pace of year-over-year growth moderated. This slowdown is attributed to a calendar shift for the Labor Day holiday. Such shifts can influence short-term comparisons.

However, the consistent weekly gains underscore the sector’s robust operational health. This broad recovery reflects ongoing travel demand.

San Francisco Leads Market Gains

Among the top twenty-five markets analysed, San Francisco, California, registered the most significant gains across all key performance metrics. The city’s occupancy rate increased by 25 percent, reaching 82.8 percent. Its Average Daily Rate (ADR) saw a substantial 28 percent rise, settling at $231.82.

Consequently, Revenue Per Available Room (RevPAR) in San Francisco surged by 59.9 percent, reaching $191.87. These exceptional results were primarily driven by the Pokémon World Championships, which attracted a large influx of visitors. This event-driven surge demonstrates the considerable impact major conventions and gatherings can have on local hotel economies.

Such large-scale events can transform market performance indicators within specific periods. They highlight the importance of business and leisure events for urban travel sectors. Other destinations can observe how targeted event hosting drives demand. This strategy offers a clear pathway for boosting local hospitality revenues.

Varied Performance in Other Key Cities

While San Francisco experienced strong growth, other major markets showed varied results. New Orleans, Louisiana, recorded the steepest declines in certain metrics. Its occupancy fell by 14.9 percent, reaching 40.6 percent. Revenue Per Available Room (RevPAR) in New Orleans dropped by 18.4 percent, settling at $47.50.

This downturn was largely due to a comparison against the Southern Decadence event held in the previous year. The absence of a similar large-scale event during the comparable week impacted the figures significantly. Meanwhile, New York City registered the sole double-digit drop in Average Daily Rate (ADR) among the top markets.

The city’s ADR declined by 12.3 percent, reaching $279.72. These city-specific fluctuations reveal how local events and their timing heavily influence hotel performance. They underscore the varied dynamics within the broader national trend.

Implications for US Hotel Industry

The latest CoStar data reveals a complex picture for the US hotel industry. While the national sector maintains a consistent growth trajectory, individual markets respond differently to specific events and calendar shifts.

The strong performance in San Francisco, spurred by a major championship, highlights the potential for event-led tourism to drive substantial revenue increases. This shows how targeted event hosting can significantly boost local hospitality. Conversely, New Orleans’ declines, linked to a prior year’s festival, demonstrate the volatility introduced by event timing.

Such comparisons against strong prior-year events can skew current performance metrics. New York City’s ADR drop further indicates that even major urban centres face unique market pressures. Industry stakeholders will continue to monitor how these localised factors evolve. Understanding these varied dynamics is crucial for revenue management and strategic planning.

Operators should consider event scheduling and its impact on future year-over-year comparisons. This data helps inform investment decisions and marketing strategies across diverse regions.