US hotels posted March 2026 occupancy of 64.9% (up 2.0%), ADR of $168.06 (up 3.8%), and RevPAR of $108.99 (up 5.9%), per STR/CoStar's March data. The quarter marks a turnaround: January 2026 delivered the first month of RevPAR growth — $79.69, up 0.4% — since March 2025, per the same source, and March accelerated that recovery.
For operators, the shift changes the 2026 operating stance from defense to selective reinvestment: after a 2025 in which occupancy and RevPAR both fell year over year, spring data supports holding rate rather than discounting into shoulder season.
What drove the quarter
Rate led, occupancy followed. March's 3.8% ADR gain is the largest monthly increase in the recovery window and signals that demand strengthened enough for revenue managers to push rate in transient and group segments alike. The occupancy gain of 2.0 points is equally notable after a 2025 in which monthly occupancy ran negative almost throughout, per STR/CoStar's monthly releases.
The recovery was forecast, but later and softer than expected: CoStar's February 2026 forecast assumptions still projected a slight full-quarter RevPAR decline before the March data arrived. Full-year 2026 projections from CoStar and Tourism Economics — ADR up about 1%, occupancy slipping slightly to 62.1% — assume the year ends positive on RevPAR overall.
Related stories: US hotels closed 2025 with occupancy and RevPAR both down, STR data shows · World Cup weeks lifted July occupancy to 67.6%, with New York the standout market.
What it means for operations
Three implications follow for property teams. First, staffing plans built on a flat-revenue baseline deserve a second pass: a 5.9% RevPAR month typically shows up first in housekeeping volume and F&B covers, the two cost lines most sensitive to occupancy. Second, rate discipline matters now — the March data suggests travelers are accepting higher ADR, and early discounting would surrender margin the recovery is offering. Third, the divergence between markets persists; the national figure blends strong group cities with still-soft secondary markets, so property-level forecasting should weight local competitive data over the national trend.
The Q2 question is durability: whether April-June holds the gains or the spring surge borrows from summer. CoStar's monthly releases through the season will settle it.