U.S. hotels return to RevPAR growth in January 2026

Modest rate gains offset flat occupancy as performance stabilizes after months of decline

The U.S. hotel industry delivered mostly positive year-over-year results in January 2026, according to CoStar data. While occupancy remained essentially flat compared to the prior year, gains in average daily rate supported overall revenue growth. The month marked the first RevPAR increase since March 2025, signaling early signs of stabilization. Performance varied significantly across major markets, with event-driven demand and prior-year comparisons influencing results.

Key takeaways

• RevPAR returns to growth: Revenue per available room increased 0.4% year over year to US$79.69, marking the first monthly gain in nearly ten months.
• Rate-driven performance: Average daily rate rose 0.6% to US$152.09, compensating for a slight 0.2% decline in occupancy, which stood at 52.4%.
• Minneapolis leads major markets: The market recorded the strongest gains among the Top 25, with occupancy up 17.5% and RevPAR rising 25.9%.
• Event impact in Miami: Miami posted the only double-digit ADR increase (+12.4%), supported by demand from the CFP Playoff Championship Game.
• Sharp declines in Washington, D.C.: ADR and RevPAR fell significantly due to difficult comparisons with last year’s presidential inauguration.
• Occupancy pressure in Tampa: Tampa experienced the largest occupancy decline among major markets, down 14.9% year over year.

Source: CoStar

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