Dive Brief:
- After U.S. hotels saw widespread RevPAR declines in 2025, the first half of 2026 brought “renewed yet uneven momentum,” with top-tier luxury and upper upscale hotel brands seeing robust growth while their lower-tier counterparts faced pressure, according to a new report from Colliers.
- Luxury continued to outpace all other segments in the first half of the year, with at least one luxury brand from each Hilton, Hyatt, Marriott International and IHG Hotels & Resorts seeing double-digit YOY RevPAR growth during the half, the report found. On the flip side, the economy segment saw year-over-year declines in occupancy, ADR and RevPAR in H1.
- The “stark performance divide” between hotel segments in H1 was reflective of the K-shaped economy, per Colliers. Premium, lifestyle and destination-oriented brands drove rate growth while lower-tier segments were negatively impacted by budget-conscious travelers and the lasting impacts of recent supply additions.
Dive Insight:
The U.S. hospitality landscape in H1 has been characterized as a “tale of two markets,” according to Colliers. At midyear, “trailing 12-month RevPAR increased 1.8% overall, its strongest mark since May 2025,” per the report. These gains were fueled by an 8.4% year-over-year increase in June, a result of 6.7% ADR growth and a 1.6% increase in occupancy.
RevPAR growth in June was most pronounced in the luxury segment, up 13.3% year over year, bolstered in part by the FIFA World Cup, per the report.
All segments except for the economy chain scale saw year-over-year RevPAR growth in the first half. Lifestyle, boutique and destination-driven hotel brands drove growth as consumers were willing to “pay a premium for unique, experience-led stays,” according to Colliers.
IHG’s Atwell Suites led all other hotel brands for the greatest RevPAR gains in H1 with 22.7% YOY growth in the half. Following in the top five were IHG’s Kimpton Hotels (15%), Hilton’s LXR Hotels & Resorts (12.9%), The Unbound Collection by Hyatt (12%) and Marriott’s W Hotels (10.8%).
While Hilton, Hyatt, Marriott and IHG all saw strength across their upper-tier brands in H1, they also saw stabilization across their mid-market brands, according to the report. IHG, in particular, saw occupancy stabilize across core brands such as Holiday Inn, Holiday Inn Express and Candlewood Suites.
Marriott’s mid-market brands showed improved performance in H1, contributing to 4.6% year-over-year RevPAR growth in the U.S. and Canada, per the report. During an earnings call last month, Marriott CEO Anthony Capuano said that despite the luxury segment leading RevPAR growth in Q2 2026, “strength was pervasive across chain scales.”
Meanwhile, Hilton saw its mid-tier brands outpace luxury ones, excluding LXR, in H1, according to Colliers.
In April, Hilton CEO Chris Nassetta said the company’s better-than-expected Q1 2026 performance results were driven by what he called a “C-shaped economy,” with middle- and lower-income households increasing their spending.
