The American Hotel & Lodging Association (AHLA) has released its 2026 State of the Industry report, presenting data on hotel performance, operating conditions and the outlook for the year ahead. The report projects improved opportunity in 2026, supported by major global events such as the FIFA World Cup and America250, which are expected to increase travel demand. The report also notes that the industry continues to invest in hiring and operations.
The findings contrast with conditions in 2025, when hotels operated in a constrained environment. Cost inflation remained persistent, recovery was uneven across markets and travel patterns continued to shift. Domestic demand stayed relatively stable, but the report states that “stability” does not represent a full return to pre-pandemic fundamentals once inflation and expense growth are considered.
“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. “Even as operating costs remain elevated and profitability lags in many markets, hotels supported more than two million jobs last year and generated tens of billions of dollars in tax revenue for governments at every level. This year we expect consumer spending to rise and our workforce to expand – showing some positives amidst many market challenges as our industry continues to persevere.”
The report outlines several economic indicators for the sector. Hotels generated $85.1 billion in local, state and federal taxes in 2025, an increase of $1.7 billion from 2024, with projections nearing $87 billion in 2026. Guest spending is expected to reach nearly $805 billion in 2026, representing a 1.7% increase over 2025. The industry paid nearly $128 billion in wages and benefits in 2025 and is projected to approach $131 billion in 2026.
Operating performance remains affected by rising expenses. Increasing operating costs were a primary factor keeping gross operating profit per available room at roughly 90% of 2019 levels. Despite these pressures, 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 highlights continued differences in travel segments. Domestic leisure travel remains the largest component of U.S. travel activity, while international inbound travel remains below pre-pandemic levels. This is identified as a challenge for destinations that depend on overseas visitation and higher-spend travelers.
AHLA concludes that future performance will depend on conditions that support sustained growth. The report emphasizes the role of policies that facilitate travel, address cost pressures and strengthen workforce development as the industry seeks to convert resilience into longer-term stability.