U.S. Hotel Performance Rises in March as Construction Pipeline Continues Decline

May 13, 2026

ARLINGTON, Va. — U.S. hotel performance increased year over year in March, while the number of hotel rooms under construction declined for the 15th consecutive month, according to recently released data from CoStar.

Occupancy reached 64.9%, up 2% from March 2025. Average daily rate (ADR) rose 3.8% to $168.06, while revenue per available room (RevPAR) increased 5.9% to $108.99.

Among the Top 25 markets, San Francisco reported the largest increases across the three key performance metrics. Occupancy rose 12.4% to 74.8%; ADR increased 23.5% to $267.64; and RevPAR rose 38.8% to $200.06. CoStar said the market’s performance was helped by several conferences, including the Game Developers Conference and the 35th annual RSA Conference.

Las Vegas posted the second-largest gains in ADR, up 17.4% to $235.74, and RevPAR, up 23% to $193.04. Overall, 19 of the Top 25 markets recorded RevPAR growth.

At the same time, CoStar reported 136,990 U.S. hotel rooms under construction in March, down 5.4% from a year earlier. Rooms in final planning decreased 9.3% to 247,728, while rooms in planning fell 7.3% to 333,467.

“Despite a continued decrease in the number of rooms in construction, there are just 10 less hotels in that phase than in March 2025,” said Isaac Collazo, STR’s senior director of analytics. “We are also seeing a shift in movement through the pipeline compared to last year, with more hotels advancing from earlier stages into construction. Development is still moving forward, albeit at a lower volume.”

The luxury segment had the highest percentage of existing supply under construction at 4.5%, representing 8,039 rooms. Upper midscale had the largest number of rooms under construction, with 40,179, followed by upscale, with 31,204.

“The luxury segment stands to see the largest percentage increase in supply (+4.5%) based on current construction,” Collazo said. “Going purely by number of rooms, the select-service segments remain at the top of the list by a wide margin.”