The U.S. hotel industry returned to growth in the first half of 2026, but performance varied sharply by segment, with luxury and lifestyle brands benefiting from strong rate growth while economy hotels continued to face headwinds, according to a new report from Colliers.
Colliers U.S. Hospitality Brand Performance Comparison Report H1 2026 found that the industry's recovery has become increasingly bifurcated, creating what researchers described as a "tale of two markets." Following a nearly flat 2025, overall U.S. trailing 12-month revenue per available room increased 1.8 percent through the first half of 2026, supported by a June surge driven by higher average daily rates and occupancy gains.
Luxury hotels emerged as the clear winners. RevPAR in the luxury segment increased 13.3 percent year over year, aided by robust rate growth and strong demand in markets hosting FIFA World Cup matches. Meanwhile, the economy segment was the only hotel class to record declines in occupancy, ADR and RevPAR during the period.
According to the report, high-net-worth travelers have continued to accept elevated room rates at luxury and experiential hotels, while budget-conscious travelers have become more selective with discretionary travel spending. Midscale and upper-midscale hotels remain caught between those competing pressures and continue to absorb inventory delivered during the recent supply cycle.
Lifestyle and Soft Brands Outperform
The continued strength of lifestyle, boutique and "soft" brands across major hotel companies is shaping Colliers said travelers are increasingly willing to pay a premium for distinctive, experience-driven stays, helping several brands post double-digit RevPAR growth.
Across Hilton, Hyatt, Marriott and IHG, luxury portfolios recorded at least one brand with double-digit RevPAR growth during the period, largely driven by ADR gains. Curated luxury and lifestyle collections were particularly strong performers, according to the report, reflecting sustained consumer demand for unique lodging experiences and destination-oriented travel.
Among the strongest-performing brands in the study were Atwell Suites from IHG Hotels & Resorts, which recorded 22.7 percent RevPAR growth; Kimpton, up 15 percent; LXR Hotels & Resorts from Hilton Worldwide Holdings, up 12.9 percent; The Unbound Collection by Hyatt, up 12 percent; and W Hotels from Marriott International, up 10.8 percent.
Gains Across the Major Brands
The report analyzed brand-level performance across Hilton, Hyatt, IHG and Marriott, with all four companies reporting RevPAR growth in the first half of the year.
Hyatt Hotels led the group with 5.7 percent systemwide RevPAR growth, driven largely by luxury and lifestyle brands. The Unbound Collection by Hyatt posted 12 percent RevPAR growth, while Park Hyatt achieved a 9.5 percent increase and ADR of $481.36.
For Hilton, systemwide RevPAR rose 3.9 percent, while U.S. RevPAR increased 4.7 percent. LXR Hotels & Resorts was the standout performer, delivering 12.9 percent RevPAR growth and a market-leading ADR of $506.30, surpassing even Waldorf Astoria Hotels & Resorts in average room rate.
IHG Hotels & Resorts reported 4.8 percent RevPAR growth across its Americas portfolio, led by Atwell Suites, whose RevPAR jumped 22.7 percent as occupancy increased 10.9 percent. Boutique luxury brand Kimpton added 15 percent RevPAR growth, supported by an 8.7 percent ADR increase.
Meanwhile, Marriott International posted 4.6 percent RevPAR growth in the U.S. and Canada. W Hotels led Marriott's portfolio with a 10.8 percent RevPAR increase, while The Ritz-Carlton generated the highest ADR among brands included in the report at $609.82.
Midscale Rebound?
While luxury brands captured most of the headlines, performance among midscale and upper-midscale brands showed signs of stabilization. According to Colliers, the segment continued to face pressure from budget-conscious travelers and the lingering effects of new supply that entered the market during 2025 and early 2026. Deliveries peaked in the economy and upper-midscale classes in mid-2025, while new midscale supply reached its high point at the start of 2026, temporarily weighing on occupancy as markets absorbed additional inventory.
Despite those headwinds, several major-brand midscale flags posted positive RevPAR growth during the first half of the year. Hilton's Home2 Suites recorded a 5.6 percent RevPAR increase, while Tru by Hilton grew RevPAR by 4.5 percent percent.
At IHG Hotels & Resorts, Atwell Suites led the entire brand comparison with 22.7 percent RevPAR growth, driven by a 10.9 percent increase in occupancy, while core brands such as Holiday Inn, Holiday Inn Express and Candlewood Suites all posted RevPAR gains.
Marriott's Fairfield by Marriott and Hyatt's select-service brands also remained in positive territory, suggesting demand in the middle of the market is gradually improving even as it trails the industry's luxury segment.
Premium Travelers Continue to Spend
The findings reinforce a trend that has defined much of the post-pandemic recovery: Affluent travelers remain willing to pay higher rates for luxury accommodations and differentiated experiences, while operators serving value-conscious travelers face slower growth and more limited pricing power.
Colliers noted that although budget-tier performance improved compared with late 2025 levels, luxury, lifestyle and destination-oriented brands remain the industry's primary growth engines. With supply pressures easing and demand remaining healthy at the top end of the market, the performance gap between luxury and economy hotels has widened significantly since the end of last year.
For hotel owners and operators, the report suggests that brand positioning, experience-driven offerings and premium pricing strategies are playing an increasingly important role in driving performance as the industry moves through the second half of 2026.