AHLA Report Signals Brighter Outlook for Hotels in 2026

January 27, 2026

According to the American Hotel & Lodging Association’s (AHLA) 2026 State of the Industry report, the U.S. hotel industry is poised for renewed opportunity in 2026.

The data-driven report projects stronger travel demand tied to major global events—including the FIFA World Cup and America250 celebrations—alongside continued investment in hiring, operations and guest experience.

That outlook represents a meaningful shift from 2025, when hotels operated in what AHLA describes as a constrained environment. Persistent inflation, rising operating expenses and uneven market performance weighed on profitability, even as domestic travel demand remained relatively stable.

“AHLA’s State of the Industry Report is clear in its message: hotels continue to deliver economic value in every community, and we expect to see improvement over the last challenging year,” said Rosanna Maietta, President & CEO of AHLA, in a media release.

Key findings from the report include:

Hotels generated $85.1 billion in local, state and federal taxes in 2025 (up $1.7 billion from 2024), and that total is projected to rise to nearly $87 billion in 2026.
Hotel guest spending in 2026 is expected to reach nearly $805 billion, a 1.7 percent increase over 2025.
Rising operating expenses were a primary factor keeping gross operating profit per available room (GOPPAR) at roughly 90 percent of 2019 levels.
The industry paid nearly $128 billion in wages and benefits in 2025 and is projected to approach $131 billion in 2026.
The hotel workforce is projected to grow by more than 30,000 jobs in 2026, bringing direct hotel operations employment to approximately 2.2 million.

The report also notes that domestic leisure travel remains the largest component of U.S. travel activity, while international inbound travel remains below pre-pandemic levels, an important headwind for destinations that rely heavily on overseas visitation and high-spend travelers.

AHLA’s report emphasizes that converting resilience into sustained growth will depend on a supportive operating and policy environment, including measures that facilitate travel, address cost pressures, and strengthen workforce development.