After a slower 2025 — when trade policy uncertainty, reduced government travel, and a dip in international visitors to the US weighed on results — hotel performance has rebounded significantly. According to Baird, industry-wide RevPAR growth has averaged approximately 6% since February 2026 (or approximately 5%, excluding the estimated boost from FIFA World Cup). For the full year, Baird forecasts industry-wide RevPAR growth of approximately 4.6%. Luxury and urban hotels continue to lead the way, while budget and select-service properties have lagged behind.
Hotel stocks hit a rough patch in August, declining as second-quarter earnings, while solid, didn't quite meet the high expectations investors had set. However, stocks held up well in September, with global hotel brands increasing 1.5%. So far in October, hotel stocks have continued to outperform, and investors have begun shifting their focus to 2027 growth prospects, with rising oil prices and interest rates adding to the pressure. Despite the stock market noise, the underlying business fundamentals remain healthy.
According to the Global Business Travel Association's (GBTA) September 2026 survey, confidence in business travel is at its highest point since October 2024, and growing. More than half of travel buyers expect to spend more on business travel by year-end, up 14% since April. Trip volume expectations are also up sharply, with 45% anticipating more travel compared to only 30% six months ago. Optimism was strongest in Latin America and Asia-Pacific, while Europe showed the biggest rebound after being impacted earlier in the year by geopolitical uncertainty. The primary concern for travel buyers is rising costs.
Looking ahead, the outlook for meetings and events is encouraging. New hotel construction remains below pre-pandemic levels, which helps keep supply in check and supports the rate environment for meeting planners. International markets, particularly outside of China, posted strong growth across all regions in 2025 and into 2026. And with business travel confidence rising and booking pace holding firm, HelmsBriscoe remains well-positioned to help clients navigate an active and competitive marketplace.