Navigating the Rise: A Luxurious Landscape of the U.S. Hotel Market
In a world where every getaway feels like a masterstroke of elegance, the U.S. hotel industry has unveiled a tapestry of remarkable progress as of January 17, 2026. The latest insights, drawn from the meticulously compiled data of CoStar, illuminate an invigorating landscape where revitalizing trends in occupancy, daily rates, and revenue per available room beckon to discerning travelers everywhere.
Across the nation, a subtle yet compelling surge in hotel vitality has enchanted both guests and hoteliers alike. This week’s national occupancy reached an inviting 56.1 percent, marking a graceful increase of 0.7 percent from the same week the previous year. The average daily rate, a reflection of luxurious refinement, has likewise climbed by 0.9 percent to $157.21, while revenue per available room—a critical benchmark of hospitality success—glided upwards by 1.6 percent to rest at $88.19.
Yet, among these figures lies a tale of remarkable cities that have risen to the occasion, morphing local market trends into shining jewels of hospitality excellence. Minneapolis, a hidden gem that sparkles with charm and character, proudly led the country with an impressive 12.2 percent leap in occupancy, elevating its standing to 51.6 percent. The city also displayed its dynamic prowess with the second-highest revenue per available room growth, soaring by 17.4 percent to an alluring $63.93.
Meanwhile, Miami basked in the radiant spotlight as the city experienced the most significant average daily rate increase—an astounding 11.8 percent—reaching a delicate yet robust $287.54. This uplift arrived in tandem with an influx of visitors drawn to the College Football Playoff National Championship, transforming the city into a vibrant nexus of excitement and luxury. Philadelphia, too, took center stage, showcasing the highest surge in revenue per available room with a breathtaking 21.8 percent increase, bringing the figure to an inviting $86.68.
Across this grand mosaic of hospitality, 16 out of the Top 25 U.S. hotel markets reveled in the euphoria of revenue per available room growth, signaling a resurgence of ardent demand in urban havens. Yet, in the heart of this uplift, not every destination danced to the same rhythm. The capital, Washington, D.C., faced a more challenging narrative, witnessing the steepest declines along its storied streets. An ADR drop of 31.3 percent and a revenue per available room fall of 32.1 percent—now resting at $93.43—trace the echoes of last year’s Presidential Inauguration, an event that once glorified hotel performance under the gilded lights of anticipation.
As this narrative unfolds, one cannot overlook the indomitable spirit of the U.S. hotel industry—a sector in elegant recovery, poised to charm and captivate. Market-specific events and local influences, those compelling forces of allure, emerge as pivotal drivers of performance across the nation. At the intersection of luxury and aspiration, the promise of splendid experiences awaits, inviting modern-day travelers to lose themselves in the lavish embrace of America’s most vibrant cities. Life’s grand adventures beckon, crafted with a flourish that resonates with each luxurious detail.