HOSPITALITY MARKET UPDATES | CRE TRENDS & INSIGHTS
HOTEL PERFORMANCE • REVPAR & ADR • CAPITAL MARKETS • FINANCING STRATEGIES
Cornovus Capital’s Hospitality Market Updates provide Q1 2026 analysis for hotel owners, investors, and lenders evaluating RevPAR, ADR, occupancy trends, and capital markets conditions across the Southeast, Southwest, West Coast, Midwest, and Northeast U.S. hotel sectors.
Q1 2026 marks a meaningful inflection for U.S. hospitality. National RevPAR rose 3.8% year-over-year as ADR climbed 2.2% and occupancy gained 0.8%. The Federal Reserve held the federal funds rate at 3.50%–3.75% through its April 2026 meeting following three rate cuts in late 2025, returning hotel acquirers to positive-leverage economics for the first time since 2022. U.S. hotel transaction volume reached $24 billion in 2025 (up 17.5% year-over-year), and approximately $18.7 billion of hotel CMBS is scheduled to mature through 2026–2027, creating a meaningful refinancing pipeline.
Performance dispersion remains the defining theme. New York City extended its #1 occupancy ranking for the third consecutive year at 84.1%. San Francisco posted the strongest Q1 2026 RevPAR inflection of any major U.S. market. Los Angeles continued recovering from the January 2025 wildfires while preparing for an unprecedented mega-event runway through 2028. Las Vegas convention demand re-accelerated. Florida continued to lead the Southeast on rate, with Atlanta and Miami preparing for FIFA World Cup hosting alongside Boston, Philadelphia, NYC/NJ MetLife, Dallas, Houston, San Francisco, Seattle, and Los Angeles. Washington D.C. faced the steepest declines among Top 25 markets as federal-demand reset compounded a difficult Q1 2025 inauguration comparison.
Each regional report integrates operating performance, demand drivers, development pipelines, and Q1 2026 financing activity to help sponsors understand how lenders are sizing hotel loans, where capital remains available, and which business plans are most financeable in today’s market. The focus is on actionable insight—how current fundamentals translate into acquisition, refinance, recapitalization, and renovation strategies.
Use these updates as a reference point when benchmarking existing assets, pursuing new investments, or preparing a hospitality financing request.
Q1 2026 U.S. HOSPITALITY MARKET REPORTS
Select a region below to review detailed Q1 2026 hospitality performance, demand drivers, and capital markets commentary. Each report provides sponsor-ready narrative analysis for underwriting, lender conversations, and capital planning.
Southeast U.S. Hospitality Market Report — Q1 2026
The Southeast remains the most active and liquid hospitality region in the United States by transaction volume and high-quality assets in active marketing. Coastal Florida and the Carolinas continue to support strong ADR through leisure and high-net-worth travel, with Florida statewide ADR reaching $196.41 and RevPAR of $134.97 in mid-2025, and 11 of Florida’s 15 hotel markets posting positive RevPAR growth in the first half of 2025.
Atlanta and Miami are confirmed FIFA World Cup host markets, with Atlanta hosting eight matches and Miami hosting seven matches in June and July 2026. Atlanta and Nashville continue to absorb meaningful supply, while Raleigh-Durham, Charleston, and select Florida luxury markets continue to lead on rate. Lenders remain selective but functional, with SBA 7(a), SBA 504, bridge, CMBS, and LifeCo executions available for well-located full-service and select-service hotels with credible sponsor business plans.
Southwest U.S. Hospitality Market Report — Q1 2026
The Southwest entered 2026 navigating one of the most pronounced performance bifurcations in U.S. hospitality. Texas Q3 2025 trailing RevPAR was negative across all five major metros, while Las Vegas posted a meaningful Q1 2026 inflection with February RevPAR up 23% and CONEXPO 2026 driving citywide compression up 90.5% versus 2025. Phoenix held the #3 U.S. hotel pipeline at 123 projects and 16,111 rooms, with Dallas leading the nation at 184 projects and 22,861 rooms.
Dallas and Houston are confirmed FIFA World Cup host markets, with Dallas hosting nine matches (the most of any U.S. host city) and Houston hosting seven matches in June and July 2026. Capital markets remain selective but active, with SBA, bridge, CMBS, and LifeCo executions financing acquisitions, refinancings, and PIP-driven renovations across stabilized and value-add hotel business plans.
West Coast U.S. Hospitality Market Report — Q1 2026
The West Coast hospitality sector entered 2026 as the most dramatically improving region in the United States, led by San Francisco’s strongest hotel performance in five years. San Francisco March 2026 RevPAR climbed 38.8% to $200.06, with Q1 portfolio data showing RevPAR up 44.5% on the Super Bowl LX halo, the Game Developers Conference, and the 35th annual RSA Conference. Los Angeles Q1 2026 RevPAR rose 31.5% on a 16-point occupancy gain to 74.6%, recovering from the January 2025 wildfire-driven Q1 2025 disruption.
California 2026 statewide hotel revenue is forecast at $27.8 billion with statewide ADR rising 2.2% to $195. Los Angeles, San Francisco/Bay Area, and Seattle are FIFA World Cup host markets. Hawaii continues a measured recovery anchored by outer-island luxury strength, with the $650 million FS Trust 2026-HULA CMBS transaction backed by the Four Seasons Resort Hualalai reflecting continued institutional appetite for trophy West Coast resort assets.
Midwest U.S. Hospitality Market Report — Q1 2026
The Midwest entered 2026 anchored by Chicago’s convention recovery, Indianapolis’s pivotal capacity expansion, and Minneapolis’s most dramatic single-market Q1 2026 inflection in the country. Pebblebrook Hotel Trust reported Chicago Q1 2026 RevPAR up 5.6% on its portfolio. Minneapolis January 2026 occupancy climbed 17.5% to 50.6% and RevPAR rose 25.9% to $63.01, the highest gains among the Top 25 U.S. markets.
Indianapolis is in the late stages of a $200 million convention center renovation opening summer 2026, with the connected 800-room Signia by Hilton scheduled to open in March 2027. Detroit, Cleveland, Columbus, Cincinnati, Milwaukee, and St. Louis continue to navigate stabilizing leisure and group demand alongside disciplined construction pipelines. Capital remains selective but functional across SBA, bridge, CMBS, and LifeCo executions.
Northeast U.S. Hospitality Market Report — Q1 2026
The Northeast entered 2026 anchored by New York City’s structural #1 occupancy position and a forward catalyst calendar centered on the 2026 FIFA World Cup. NYC’s Five Boroughs led the nation in 2025 hotel performance with 84.1% occupancy, $333.71 ADR, and $280.71 RevPAR (third consecutive year leading the nation). Manhattan H1 2025 RevPAR rose 7.1% to $255.51 with Manhattan luxury properties posting RevPAR up 10.1%. Boston’s 2026 outlook projects 72.3% occupancy and $239 ADR with July RevPAR up 15% on FIFA and U.S. semiquincentennial demand.
New York/New Jersey at MetLife Stadium hosts eight FIFA matches including the World Cup Final on July 19, 2026. Boston at Gillette Stadium hosts seven matches; Philadelphia at Lincoln Financial Field hosts six matches including a Round of 16 match on July 4, 2026. Washington D.C. faced the steepest declines among Top 25 markets in January 2026 as federal-demand reset compounded a difficult Q1 2025 inauguration comparison.
Past Quarter Reports — Q1 2025 Archive
Prior-quarter regional Hospitality Market Reports for reference and benchmarking continuity. These reports remain available for sponsors evaluating year-over-year performance trends, demand-driver evolution, and longitudinal capital markets context.
Southeast Hospitality Market Report — Q1 2025 →
Southwest Hospitality Market Report — Q1 2025 →
West Coast Hospitality Market Report — Q1 2025 →
Evaluating a hospitality acquisition, refinance, recapitalization, or renovation across any U.S. region? Discuss This Financing Structure →
About Cornovus Capital
With over 70 years of combined experience, Cornovus Capital is a trusted financial partner specializing in business financing, commercial real estate lending, and hospitality funding solutions. We design structured capital strategies that help businesses acquire, expand, and optimize operations, ensuring long-term growth and stability.
Our expertise spans CMBS and LifeCo financing, private capital solutions, structured debt strategies, SBA 7(a) and 504 loans. By focusing on certainty of execution, disciplined underwriting, and deep lender relationships, we guide sponsors through complex financial structures with transparency and efficiency.
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These hospitality market updates are derived from Cornovus Capital’s proprietary research and industry analysis. The information is provided for informational purposes only and may include errors, omissions, or timing lags. Cornovus Capital makes no representations or warranties as to the accuracy, completeness, or fitness of the information presented.
Nothing herein constitutes financial advice, investment guidance, or a recommendation to originate, acquire, or restructure any specific financing. Market conditions and lender appetite are subject to change without notice. Sponsors should consult their own advisors and conduct independent underwriting before making financing or investment decisions.
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