Major hotel operators including Marriott, Hilton, and Hyatt are reporting average daily rate increases of 12 to 15 percent above 2025 levels, supporting record revenue per available room metrics. Occupancy rates in leisure markets are outperforming urban business travel, which has not fully recovered as corporate clients maintain tighter travel budgets.
Behind the strong headline numbers, operators are struggling with persistent housekeeping, food service, and maintenance staffing shortages. Many hotels have permanently reduced service standards adopted during the pandemic, including less frequent room cleaning and limited in-room dining. Guest satisfaction scores at several major brands have declined despite the higher room rates, creating reputational risk that operators are working to address.
