US hotel industry overcomes headwinds to rebound from a disappointing year
US hotel industry overcomes headwinds to rebound from a disappointing year
CoStar revises 2026 RevPAR forecast to 2.8% growth
Global hotel brand CEOs took the stage at the end of Day 1 to talk about hotel performance, economic concerns, international markets and artificial intelligence. From left: Sara Eisen, of CNBC; Chris Nassetta, of Hilton; Mark Hoplamazian, of Hyatt Hotels Corp.; Sébastien Bazin, of Accor; and Elie Maalouf, of IHG Hotels & Resorts. (Bryan Wroten)
https://www.costar.com/article/839386354/us-hotel-industry-overcomes-headwinds-to-rebound-from-disappointing-year?
NEW YORK — The U.S. hotel industry is facing no shortage of headwinds, whether it be high construction and labor costs, a tense geopolitical environment, or negative sentiment toward America. Despite all of this, U.S. performance in 2026 has been solid so far, already surpassing a tough 2025 with major events such as the FIFA World Cup and America's 250th anniversary still ahead.
At the first day of the NYU International Hospitality Investment Forum, hotel executives and analysts alike acknowledged the noisy environment facing the hospitality industry while simultaneously taking a bullish approach for the rest of the year and beyond.
CoStar raised its 2026 U.S. hotel revenue per available forecast to 2.8% growth, up significantly from its previous projections of 0.6% back in February.
The updated forecast also shows positive year-over-year RevPAR growth across each hotel segment, an optimistic sign for the maligned economy and midscale segments, even if their increases are projected to come in lower than the others.
"We're projecting that this year is actually very much a reversal from last year, and that room demand is going to continue to grow and that gives us some pricing power," Jan Freitag, national director of hospitality analytics at CoStar Group, said during the "State of the state: Macro, micro and trends" session.
U.S. hotel RevPAR was down 0.3% in 2025, a major disappointment caused by many of the same concerns that still linger.
Adam Sacks, president of Tourism Economics, said consumer sentiment reached the lowest mark in recorded history in the month of April. The price of gas remains above $4 a gallon in the U.S., heavily affecting disposable income among the bottom half of earners.
Consumer spending has steadily risen, however, indicating Americans haven't yet hit a breaking point opening their wallets for experiences, including travel, he said.
Quotes of the Day
"People want to enjoy themselves. We’re also seeing a great explosion in wealth creation, in a way the world hasn’t seen since the Industrial Revolution. … You can never say there’s no ceiling [to the strong performance luxury hotels are showing], because that would be dangerous. But I do think there’s a depth in this marketplace we have not expected, and that depth has grown over the last few years."
— Jonathan Goldstein, CEO of Cain, on the average daily rate resiliency luxury hotels are showing. Cain bought The Dominick hotel in New York City last fall and is rebranding it as Delano SoHo New York.
"My biggest stumbling block is that I know [artificial intelligence] will replace anything administrative and automated. What I need to make a decision on, is that probably a third if not 40% of my jobs at the corporate level will be replaced by AI technology, and you’re talking about 2,000 people. I need to warn them that what you do today is not what you’ll be doing 18 months from now. And that’s fine, they don’t need to be scared, but I need to find a place for them."
— Sebastien Bazin, CEO of AccorHotels, on the current challenges and opportunities of artificial intelligence in his company.
"If you don't put a shovel in the ground, you're not going to actually realize the benefit of demand exceeding the supply. If you don't finally get to work on building new hotels, you're not going to get reopened at the time when you will see that compounding effect of [average daily rate] growth and occupancy building. So, I think that I think things are setting up now for an improvement in construction."
— Mark Hoplamazian, president and CEO of Hyatt Hotels Corp., on the current hotel development environment.
Hotels’ next distribution battle is happening on social media, not OTAs
https://hotelsmag.com/news/hotels-next-distribution-battle-is-happening-on-social-media-not-otas/
Maximillian Adagio leads the U.S. market as senior director of growth for Pulse Advertising, a global social media and influencer marketing agency.
For most of modern hospitality history, the battle for bookings has been a battle over distribution.
Over the past three decades, hotels have navigated successive waves of change: the rise of direct online booking, the emergence of Online Travel Agencies (OTAs), mobile booking, review platforms, and loyalty ecosystems. Each innovation reshaped how travelers discovered and booked accommodations.
Today, the industry may be entering its next major shift.
Increasingly, the traveler’s journey begins not with Google, an OTA, or even a hotel website, but with a piece of social media content: A TikTok video showcasing a hidden rooftop bar. An Instagram Reel documenting a weekend stay. A creator’s itinerary is shared in a group chat. A friend’s recommendation was sent through WhatsApp.
From Search to Discovery
The hospitality industry’s digital transformation accelerated in the late 1990s and early 2000s as hotel brands embraced online reservations and OTAs such as Expedia and Booking.com scaled globally. OTAs succeeded because they simplified comparison shopping, aggregated inventory, and offered travelers an efficient way to evaluate options.
Historically, hotels competed for visibility within search results. Today, they increasingly compete for attention within social feeds.
According to Expedia Group’s 2025 Traveler Value Index, more than 60% of travelers now cite social media as a source of travel inspiration, compared to just 35% two years earlier. Research from multiple travel studies similarly indicates that roughly three-quarters of travelers use social media during the travel planning process.
Platforms such as TikTok, Instagram, and YouTube have evolved into discovery engines in their own right. Travelers now search for destinations, neighborhoods, restaurants, itineraries, and hotels directly within social platforms. Research cited by Forbes found that 67% of Gen Z consumers use Instagram for search and 62% use TikTok as a search platform.
For hospitality brands, discoverability is no longer determined solely by search rankings and website optimization. It is increasingly influenced by the quality, relevance and visibility of social content.
The Trust Economy
Creator content has emerged as one of the most effective forms of modern word-of-mouth marketing because it allows potential guests to experience a destination through the eyes of someone they trust.
While the hospitality industry was an early mover with creators for this reason, and the great compatibility between travel and social media, content from the industry is still generally overproduced, like traditional ads. Today, creator content is increasingly replacing or supplementing traditional destination marketing assets. Not because it is necessarily higher production quality, but because it feels more credible, immediate, and relatable.
Increasingly, social media is becoming part of the distribution ecosystem itself. Wise industry members will take heed of having left money and results on the table for not truly embracing the emergent channel by fully embracing social commerce.
The Largest Referral Channel You Can’t Measure
Many travel decisions now happen in private digital environments: WhatsApp groups, text messages, Facebook Messenger conversations, and group chats among friends and family planning trips together. This is a shift back to when personal recommendations and relationships with travel agents were what drove the industry.
This new phenomenon is referred to as “dark social” because the recommendation pathway is difficult to track.
A traveler may discover a hotel through an Instagram Reel, save it, share it with friends, discuss it in a group chat, and ultimately book several days later through the hotel’s website. To the hotel’s analytics platform, that booking may appear as direct traffic. The original source of influence is often invisible.
For hospitality leaders, the lesson is to recognize that recommendation networks increasingly exist beyond traditional attribution models. Measurement here may not always be perfect or easy, but don’t turn your back on the complexity–to do so is to ignore modern consumer behaviour.
The most effective social strategies are therefore designed not only for visibility, but also for shareability.
Why Social Influence Favors Direct Bookings
OTAs excel when travelers enter the market without a strong preference. They aggregate inventory, simplify comparison shopping, and help consumers evaluate options.
Social is different. When a traveler discovers a hotel through a creator they trust, a recommendation from a friend, or content shared within a private community, much of the consideration process has already occurred before they begin searching. The traveler is no longer asking, “Where should I stay?” They are asking, “How do I book this hotel?”
Social content creates preference before comparison shopping begins. Creator content, user-generated content, and recommendation-driven discovery help hotels establish intent earlier in the decision-making process and create a ‘must-have’ mindset for a specific hotel or experience. In this light, differentiation of content has never been more critical. Those glossy hotel ads overwhelm audiences with sameness.
When combined with conversion-focused social advertising, remarketing strategies, loyalty incentives, and seamless booking experiences, social platforms can help hotels accomplish something the industry has pursued for decades: generating demand before travelers enter the OTA marketplace. Rather than replacing OTAs, social commerce creates an opportunity to strengthen direct-booking ecosystems and reduce dependency on intermediary channels over time.
Embracing Social Commerce
Social platforms influence every stage of the guest journey—from inspiration and discovery to validation and booking.
Hotels that successfully adapt will integrate creator and user-generated content throughout the customer journey, including websites, email programs, paid media, and booking experiences. They will treat social content as a discoverability asset rather than simply a brand-awareness tool. They will build content strategies designed for recommendation and sharing, not just engagement.
Customs Seemed to Disappear at U.S. Airports. Here’s What Happened
ChameleonsEye/Shutterstock
https://www.fodors.com/news/news/whatever-happened-to-customs-agents-why-airport-customs-checks-look-different-today
Many international travelers have noticed customs inspections seem less visible at U.S. airports.
For international travelers entering the United States, there used to be a two-step process at the border. The first stop would be an Immigration agent, who would verify your documents and your eligibility to enter the country. Once you were admitted, you’d have a second stop, where a Customs agent would ask questions about what you were bringing into the country with you.
Travelers still get the first step, but many may notice that the second step has largely disappeared. So, what happened?
The Types of Screening at the U.S. Border
The United States is a big country, and many parts of the border lack barriers or staffing, such as most of the northern land border with Canada, and most of the country’s ocean coasts. Crossing the border wherever you like, however, is against the law. To enter the United States, travelers must enter at designated Ports of Entry (POE). These can be land checkpoints, seaports, or airports—all told, there are 328 of these in the United States.
Federal officials screen three things at a POE. First, they screen travelers, verifying citizenship status, and for non-U.S. citizens and permanent residents, verifying their eligibility to enter the country. Second, they screen commodities—either those shipped as cargo, or personal effects carried by travelers. Third, they screen for potential threats to U.S. agriculture.
These three screening types were once carried out by three different agencies. The U.S. Immigration and Naturalization Service (INS), part of the Department of Justice, was once responsible for the first type of screening. The U.S. Customs Service, part of the Department of the Treasury, was responsible for the second, and the U.S. Department of Agriculture (USDA) was responsible for the third.
Enter the Department of Homeland Security
When the Department of Homeland Security (DHS) was created in 2003 in response to the 9/11 attacks, the screening roles were merged and assigned to a single agency U.S. Customs and Border Protection (CBP). CBP is one of the largest law enforcement agencies in the United States, with over 69,000 employees—45,000 of whom are officers inspecting passengers and cargo at POEs.
A CBP spokesperson explained to Fodor’s “CBP’s Office of Field Operations integrates these functions, so OFO personnel conduct all customs, immigration, and agriculture inspections at ports of entry in a unified process. This streamlined approach, supported by modern technology such as biometrics and automated systems, enhances security and efficiency, though procedures may vary by airport based on size, layout, and available programs like Trusted Traveler Programs lanes or preclearance.”
It’s worth noting that two decades ago, before the creation of CBP, border crossing processes in the U.S. (and most other countries) relied heavily on interviews with travelers and written declarations. Much of that process is now digital, so there’s less reliance on interviewing passengers and going through the details individually.
Noted the CBP spokesperson, “While individual officer roles are less visible, CBP continues to coordinate border security and facilitate lawful travel and trade.”
The functions that were once handled by separate agencies are now all handled by CBP, and processes can vary slightly from airport to airport. I recently declared goods over my duty-free allowance on arrival at San Francisco International Airport. The CBP officer at the first screening station locked my passport in an RFID-equipped plastic case, instructing me to visit the secondary screening station in baggage claim after I had collected my checked bag.
After talking with me about what I was importing, the officer at the secondary station unlocked my passport and sent me on my way (the duty amount would have been relatively small, and officers don’t always elect to collect duties in smaller amounts—the important thing is that travelers declare the goods). Here, the CBP officers were performing the functions previously assigned to INS and the U.S. Customs Service.
In Atlanta, the process was different. I didn’t have anything to declare there, but an officer approached me in baggage claim and asked questions about what I had purchased on my trip to Peru. He seemed particularly interested in whether I had food items or plants. I suspect that CBP pays closer attention to arrivals from Peru, where unprocessed coca leaves and teas made from the leaves are sold in plastic bags in markets throughout the country.
Importing coca leaves to the United States is illegal (and so is exporting them from Peru), because they’re used to make cocaine. I did have some tea, but it was Muña (Andean Mint), and some packaged snacks, which are ok, so he waved me through. In Atlanta, the CBP officers were performing the functions previously assigned to INS and the USDA.
How CBP Screens Passengers
CBP doesn’t widely discuss details about investigations and screening procedures, but some of them are pretty common-sense. During my time working in airport operations, I spent a good amount of time in various airport Federal Inspection Stations (FIS – the specific name for a CBP screening area at a POE), and observed much of the process. I remember one instance in Anchorage, where an officer was inspecting the baggage of a passenger who had just arrived from an Asian country (at the time, Anchorage still had a handful of nonstop flights from Asia). The passenger was bound for Utgiaqvik, Alaska, and had brought with him a large supply of DVDs, which he claimed were for personal use.
“But why do you have multiple copies of the same title?” The officer asked. “Do you like those movies that much?” In the end, he had his DVDs seized and was warned not to try it again, or he could face stiffer penalties.
On another occasion, in Las Vegas, I watched as officers interviewed a lady arriving from South Asia. There was a question about her visa, and they’d similarly had her open her bags so they could be examined. The officers found that she’d packed many more clothes and household items than they considered typical for the tourist visa she’d planned to enter the country on, and they also noted she brought a lot of credentials and certifications—as though she were seeking work instead of sightseeing. They ultimately decided to revoke her visa and deny her entry, and she returned home on the next available flight.
Nowadays, much of what CBP officers do has been digitalized. There are no more paper declaration forms to fill out, and in many cases, U.S. citizens briefly stop for a facial recognition scan before being welcomed home. The work of the officers is lower touch, but that simply means a lot of the screening now simply happens faster, digitally, and behind-the-scenes, meaning that citizens can largely cross the U.S. border faster and with fewer speedbumps.
With 54 Countries to Choose From, How Do You Pick an African Destination?
Getty Images for Unsplash+
https://www.fodors.com/world/africa-and-middle-east/experiences/news/heres-how-to-pick-your-next-african-destination
Let the planning begin!
Africa has the most countries in the world, 54, spanning global languages, cultures, and terrain. From the Great Pyramids of Giza to Victoria Falls, to the peak of Mount Kilimanjaro in Tanzania, and the Masai Mara National Reserve in Kenya, there is something for everyone in Africa. This guide will help you pick an African destination, whether it’s your first time or you’re a repeat traveler.
But first things first: before picking a destination, make sure you have a yellow fever vaccine and card, which are required for most African countries. You can get a yellow fever vaccine at your local travel clinic or use the Centers for Disease Control’s search function.
Your passport is the next important thing. Make sure you have at least two blank pages available for stamps and visas left in your passport, and ensure your passport is valid for at least six months from your departure date. Once this is cleared, the planning can begin.
Omar ElsharawyUnsplash
The Best Destinations for Food & Culture
You don’t have to travel far to experience good food and culture in Africa. With Senegal being the westernmost country on mainland Africa, a direct flight from JFK will bring you to the vibrant capital of Dakar. Visit the largest statue in Africa, the African Renaissance Monument, standing at 171 feet tall. Take a ferry to Goree Island, a UNESCO World Heritage site, and learn about its role in the transatlantic slave trade. Catch a traditional Senegalese wrestling “lutte” match.
Experience “teranga” hospitality, the Senegalese philosophy of generosity and community, and enjoy the national dish, ceebu jen, a richly-seasoned fish, rice, and tomato dish. Sail on Lake Retba, also known as Lac Rose or the Pink Lake, and then head north to Saint Louis, the former capital of French West Africa and another UNESCO World Heritage Site.
Egypt, home to one of the world’s oldest civilizations, is another stellar destination for food and culture. In Cairo, visit the Great Pyramids and the Sphinx of Giza. The Egyptian and National Museum of Egyptian Civilization are filled with precious preserved artifacts. And don’t leave the city before experiencing an elegant dinner cruise on the Nile River, which is a must.
After experiencing Cairo, head south to Aswan to learn more about the Nubians and their villages. Sail down the Nile on a felucca and take a dip! You can’t leave Aswan without visiting Philae and Abu Simbel Temples. The contrast between Cairo and Aswan is stark, making for a well-rounded itinerary.
Benin in West Africa is another country well worth visiting and too often left off travelers’ lists. Known as the birthplace of Vodun (voodoo), Benin offers a unique opportunity to learn about this religion. In Ouidah, visit the Sacred Forest and the Python Temple. Ouidah also played an important role in the transatlantic slave trade. Here you will find the Door of No Return, now a monument, once a horrifying passage that led slaves to ships headed to the Americas. Sail through Ganvie, a stilt village that began as a place to hide from slavery and is now a thriving lake village, often nicknamed the “Venice of Africa”.
In Porto Novo, the capital of Benin, enjoy museums and a sail down the Adjarra River, also known as the Black River. Learn how the community makes a living through weaving and other artistry. No trip to Benin is complete without visiting the palaces of Abomey and learning about the all-female military unit known as the Agojie. Agojie was the inspiration for the film “The Woman King.”
Photo by Teodor Kuduschiev/Unsplash
The Best Destinations for Beach Lovers
You haven’t seen water so blue until you have swum in the waters of the Indian Ocean. Although the flight will be long, it will be worth it. The Seychelles is the smallest country in Africa and has the smallest capital in the world, Victoria. Bring out the snorkeling gear to see the beautiful marine life. Beau Vallon and Anse Royal beaches are waiting for you!
You’ve already flown this far, so you might as well explore another nearby African country: Mauritius. If you’re looking for luxury, look no further. This culturally diverse country is a luxury lovers’ paradise. Turquoise waters, clear lagoons, and beautiful scenery make Mauritius the ideal place to relax. If a little bit of hiking is more your speed, waterfall treks and coastal trails are available here. Don’t let the long flight deter you from this paradise. The beautiful beaches of Le Morne, St. Felix, and Mont Choisy are some of the most spectacular on earth.
If you are not up for the long flight to Eastern Africa, West Africa has beautiful beaches worth visiting. See the white sand beaches of River No. 2 in Sierra Leone. With long stretches of beach, the likelihood of you having a piece of paradise to yourself is very high. If you are into surfing, you can catch some waves at Bureh Beach, outside of the capital of Freetown. The best time to surf in Sierra Leone is from March to October.
Cédric Dhaenens /Unsplash
The Best Destinations for Safaris
When people think about the African continent, safari is probably the first thought that comes to mind. There are so many places to see animals in their natural habitats. Kenya is the birthplace of safaris. Every year, animal lovers flock to the Masai Mara to experience the Great Migration, as animals leave the Serengeti in Tanzania to migrate to the green pastures of Kenya. Although there is no specific date, the window of opportunity to spot this annual migration is between July and September. If you are in Kenya outside of this window, you can still see animals by visiting Nairobi National Park, the only National Park within a capital city in the entire world. A shuttle from the city center will bring you here to enjoy a game drive.
Outside Kenya, Kruger National Park in South Africa is home to the Big Five (buffalo, elephants, leopards, lions, and rhinos) and is the largest reserve in the country. With lodging ranging from campgrounds to luxurious bungalows, there are accommodations for all budgets. With limited light pollution, starry nights are the best here. Pack your best safari outfits and prepare yourself for an experience of a lifetime.
If elephants are your favorite animals, you must visit Chobe National Park in Botswana, which has the highest concentration of elephants in Africa. A day trip here can be arranged from Zambia or Zimbabwe. Cruise along the Chobe River while you watch elephants bathing and lathering their bodies in mud as they try to cool off from the heat. After the river cruise, drive through the park and catch giraffes necking, zebras grazing, and many more animals prancing around.
No matter where you choose to travel in Africa—be it a safari in Kenya, a beach getaway in the Seychelles, or a cultural excursion in Egypt—this continent promises something for everyone.
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