U.S. Hotels Lift Q1 RevPAR 8.7% as Full-Year Pricing Power Softens
Updated
Updated · HOTELS · May 21
U.S. Hotels Lift Q1 RevPAR 8.7% as Full-Year Pricing Power Softens
1 articles · Updated · HOTELS · May 21
Summary
$129.46 RevPAR and $202.63 ADR marked a strong Q1 for U.S. hotels, with occupancy up 1.5 points to 64.3% and gross operating profit margin rising to 41.8% from 37.8%.
HotelData.com said stronger demand and better room filling drove the gains, but operators increasingly relied on converting demand into revenue and controlling costs to protect profitability.
Luxury hotels led the quarter with the strongest TrevPAR growth and biggest margin improvement, while economy hotels posted declines in ADR, RevPAR and TrevPAR and independents saw slight margin compression.
For Q2 through Q4, operators forecast ADR to rise just 1.6% versus 2025, while RevPAR falls 1.3% and TrevPAR drops 2.6%, signaling stable occupancy but weaker pricing power later in 2026.