CoStar, Tourism Economics upgrade U.S. hotel growth forecast

Why this matters

The upward revision to U.S. hotel growth forecasts by CoStar and Tourism Economics signals a cautiously optimistic recalibration of institutional expectations for hospitality real estate. An increase in RevPAR and ADR projections suggests that demand recovery is outpacing earlier assumptions, potentially reflecting stronger consumer confidence and travel activity. The anticipated rise in GOPPAR further implies improving operational profitability, which could support more robust underwriting and valuation metrics for hotel assets. For allocators and lenders, this adjustment may influence capital allocation decisions within the sector, encouraging renewed interest in hotel investments that had been tempered by pandemic-era uncertainty and inflationary pressures. It also hints at a possible tightening in lending conditions becoming less acute, as improved cash flow prospects reduce risk premiums. However, the forecast horizon through 2026-27 underscores that recovery remains gradual, not a swift rebound, reinforcing the need for selective positioning and scrutiny of market subsegments. Overall, the revised outlook reflects evolving fundamentals that could recalibrate risk-return profiles in hospitality, affecting capital flows and portfolio strategies amid a still-fluid macroeconomic environment.

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On the RET wire

• Disclosed hospitality deal value tracked in August 2026: $10.5B across 11 reported transactions. All Hospitality coverage →
• 18 stories mentioning CoStar on the wire in the past 90 days. CoStar coverage →

Computed from Real Estate Trail’s own tracked coverage

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