World Cup hotel demand falls short of expectations in U.S. host cities

Soft booking pace raises concerns about international travel barriers and policy headwinds

With just over a month to go before kickoff, many U.S. hotels are seeing weaker-than-expected demand tied to the 2026 FIFA World Cup. An industry survey by the American Hotel & Lodging Association indicates that nearly 80% of properties in host markets are pacing below earlier forecasts. This contrasts with projections from firms like CoStar and Tourism Economics, which anticipated rate and occupancy growth. While some markets show resilience, the overall picture suggests a more muted economic impact than initially expected.

Key takeaways

• Booking pace below expectations: Around 80% of surveyed hotels report reservations trailing earlier forecasts, signaling a softer-than-anticipated demand curve for the tournament period.
• Uneven market performance: Cities such as Boston, Philadelphia, San Francisco, Seattle, and especially Kansas City are underperforming, with some hoteliers calling the event a “non-event.”
• Stronger pockets of demand: Miami and Atlanta stand out, with many hotels meeting or exceeding expectations, while Los Angeles and New York are tracking close to normal summer levels.
• Short-term rentals gaining share: Data from AirDNA suggests alternative accommodations may be capturing a meaningful portion of event-driven demand.
• International travel constraints: About 70% of hoteliers cite visa issues and geopolitical concerns as key factors limiting inbound demand from international visitors.
• Policy tensions emerging: The AHLA is leveraging the data to push back against proposed temporary tax increases in markets like New Jersey and Philadelphia, arguing they could further dampen demand.
• Late booking window remains: With matches running through mid-July, hotels may still see a pickup in last-minute bookings, leaving some room for demand recovery.

Source: Skift

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