U.S. hotel prices are moving higher heading into summer, but the latest industry data show a more complicated market than a simple travel boom: high-end hotels and event-heavy cities are still gaining pricing power, while lower-priced segments and softer occupancy trends point to a widening split in traveler demand.
The clearest signal came from fresh CoStar/STR data released May 29. U.S. hotel revenue per available room, a key industry measure known as RevPAR, rose 4.6% year over year during the week of May 17-23, marking a seventh consecutive week of RevPAR growth. Average daily rate rose 3.8%, meaning higher prices, more than a broad surge in room demand, are doing much of the work.
For American travelers, the takeaway is practical: hotel bargains may be harder to find in popular summer markets, especially around concerts, conventions, sports events and high-end leisure destinations. For the U.S. travel industry, the data suggest demand remains resilient, but not evenly distributed across income groups, hotel classes or cities.
Rates are carrying more of the growth
CoStar/STR reported that over the four weeks leading into late May, U.S. room demand rose 1.3%, while average daily rate increased 3% year over year. That imbalance matters because it shows hotels are still able to lift revenue even when occupancy is not surging everywhere.
The pattern was especially visible over Memorial Day weekend. According to the same CoStar/STR analysis, Friday and Saturday room sales fell 1.2% compared with the same holiday period last year, and occupancy slipped by 1.3 percentage points. Yet RevPAR still increased 1.9% because average daily rate rose 3.6%.
That is a meaningful signal for travelers planning late spring and summer trips. A destination may not be completely sold out for rates to stay firm. If hotel operators believe enough higher-spending guests will still book, they can keep prices elevated even when total room sales are softer.
Luxury hotels and event markets are outperforming
The strongest gains are concentrated at the upper end of the market. CoStar/STR said luxury hotels posted an 8.3% RevPAR increase over the recent four-week period, driven by a 6.9% rise in average daily rate. Luxury was also the only chain scale to record an increase in rooms sold over Memorial Day weekend, despite an average weekend rate of $462.
That high-end resilience helps explain why some travelers may see expensive hotel quotes even while news about the economy, inflation or international uncertainty feels mixed. Affluent leisure travelers, premium business travelers and event-driven guests are still supporting pricing in many markets.
Large events are also creating sharp local spikes. CoStar/STR said San Francisco and Las Vegas each posted 28% RevPAR growth over Memorial Day weekend. San Francisco benefited from stronger room demand, while Las Vegas was lifted by a concert-heavy weekend that pushed Saturday occupancy to 95.9%. Nashville, Orange County and Miami were also among the stronger luxury and upper-upscale markets.
Travelers flying into those cities should treat hotel cost as part of the total trip budget, not an afterthought. When comparing air-and-hotel combinations, checking flight options into San Francisco International Airport, Las Vegas Harry Reid International Airport, Nashville International Airport or Miami International Airport can help identify whether a slightly different schedule or airport plan reduces the overall cost of the trip.
Lower-priced segments are not seeing the same lift
The hotel market is not strong in a uniform way. CoStar/STR noted that midscale and economy hotels continued to show softer overall demand, while upscale and upper-midscale hotels delivered more balanced growth. Those middle segments accounted for most of the recent U.S. hotel demand growth, helped by transient travelers even as some group demand softened at the high end.
This split is important for travel advisors, tour operators and families. It suggests that value-sensitive travelers are still under pressure from the broader cost of travel. U.S. Travel Association’s April Travel Price Index, based on federal consumer price data, showed hotel prices up 4.3% year over year and 2.8% from March, reversing earlier declines. The broader travel-price index rose much faster than overall inflation, with transportation and lodging both contributing to the increase.
In other words, hotel pricing is rising at the same time many travelers are also paying more for flights, fuel, meals and local transportation. That makes package value, cancellation flexibility and timing more important than usual for summer planning.
HVS raises its 2026 hotel outlook
The same week, hospitality consulting firm HVS raised its 2026 U.S. RevPAR growth forecast from 2.2% to 3.0%, citing stronger-than-expected hotel performance so far this year. HVS said national RevPAR was up 4.9% for the trailing 28-day period ending May 16, following a 4.4% increase in April.
HVS pointed to several factors behind the stronger outlook, including favorable convention calendars, recovering markets such as the Bay Area, and some U.S. travelers choosing domestic trips instead of international vacations because of conflict, uncertainty or the desire for a smoother trip. The firm also said FIFA World Cup activity may not lift the entire national market evenly, but should help host cities and specific travel corridors.
That forecast adds weight to the CoStar/STR weekly data. The story is no longer just a short-term holiday-weekend bump. Industry analysts now see enough momentum to raise expectations for the full year, even while acknowledging that growth is uneven.
What this means for summer travelers
For travelers, the first move is to book lodging earlier in event-heavy cities. Concerts, conventions, major sports dates and holiday weekends can move hotel rates more sharply than general tourism demand. Waiting for last-minute discounts may work in some softer markets, but it is a risky strategy when a city has a clear demand driver.
Second, compare total trip cost rather than hotel price alone. A cheaper room far from the airport, venue or cruise port can become more expensive once rideshare, parking, resort fees or extra travel time are included. Conversely, a higher room rate may be worth it when it reduces ground transportation and protects a tight itinerary.
Third, travelers should pay close attention to cancellation rules. In a rate-driven market, flexible bookings can preserve optionality if prices fall, while nonrefundable rates may only make sense when the savings are meaningful and the trip is certain.
For hotels, destinations and travel sellers, the latest data are encouraging but cautionary. U.S. lodging demand is still strong enough to support higher rates in the right markets, especially at the premium end. But the softer performance in economy and midscale hotels shows that not every traveler is absorbing higher costs with the same ease.
The result is a summer hotel market that rewards careful planning. Demand is real, pricing power is real, and so is the divide between travelers who can keep spending and those who are becoming more selective. That split may define U.S. lodging performance well beyond Memorial Day.