The U.S. hotel industry is expected to maintain steady growth in 2026, despite persistent cost pressures, according to the newly released 2026 State of the Industry Report by the American Hotel & Lodging Association (AHLA). The report provides a comprehensive, data-driven outlook on hotel performance, employment, guest spending and profitability across the United States.

According to AHLA, hotels generated $85.1 billion in local, state and federal taxes in 2025, a figure projected to rise to nearly $87 billion in 2026, underscoring the sector’s continued importance to public finances. Guest spending is also forecast to increase, reaching approximately $805 billion this year, a 1.7% rise compared to 2025.

The report highlights that major global events hosted in the United States, including the FIFA World Cup and America250, are expected to boost travel demand. However, the industry continues to operate in a constrained environment marked by elevated operating costs, uneven market recovery and shifting travel patterns.

AHLA President and CEO Rosanna Maietta stated that the findings reflect both resilience and ongoing challenges. While profitability remains under pressure — with gross operating profit per available room (GOPPAR) still at about 90% of 2019 levels — hotels continue to deliver substantial economic value to communities nationwide. In 2025 alone, the industry supported more than two million jobs and paid nearly $128 billion in wages and benefits, a figure expected to climb to $131 billion in 2026.

Employment growth is also projected to continue. The hotel workforce is expected to expand by more than 30,000 jobs in 2026, bringing total direct employment in hotel operations to around 2.2 million workers.

From a demand perspective, domestic leisure travel remains the backbone of U.S. travel activity. At the same time, international inbound travel has not yet fully recovered to pre-pandemic levels, posing challenges for destinations that rely heavily on overseas visitors and high-spending travelers.

The AHLA report concludes that transforming the industry’s resilience into long-term, sustainable growth will depend on a supportive policy and operating environment. Key priorities include policies that facilitate travel, ease cost pressures and strengthen workforce development, ensuring that the U.S. hotel sector remains competitive in an evolving global tourism landscape.