North American travelers are facing higher costs as Marriott International reported a significant jump in hotel revenue for the third quarter of 2026. The company's revenue per available room (RevPAR) in the U.S. and Canada rose 7.4%, driven by a combination of higher nightly rates and increased occupancy levels.

Why are US hotel rates rising?

The growth in North American pricing is part of a broader trend where demand is outstripping the available supply of rooms. While Marriott reported strong performance, industry data shows that the U.S. hotel development pipeline has contracted, with room inventory growing by only about 1.2% this year.

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This supply-demand imbalance allows operators to maintain pricing power. Marriott CEO Anthony Capuano noted that growth was widespread, seeing "broad-based growth across customer segments and chain scales," meaning the price increases were not limited to luxury hotels but affected budget and mid-range properties as well.

Understanding the impact on travelers

To understand these trends, it is helpful to look at RevPAR, the primary metric used to measure hotel success. RevPAR reflects the money a hotel earns per room on average, factoring in both what guests are charged and how full the property is. Because both the price per night and the number of guests filled the rooms simultaneously, the revenue per room increased significantly.

Key RevPAR growth figures from the third quarter include:

  • U.S. and Canada: 7.4%
  • Worldwide: 6.5%
  • Asia Pacific (excluding China): over 9%
  • Europe, Middle East, and Africa: over 4%

What to watch for this holiday season

Marriott has raised its full-year worldwide RevPAR growth forecast to a range of 4.5% to 5%, up from its previous estimate of 3% to 3.5%. This upward revision suggests that the company expects the momentum to continue through the end of the year.

For those planning winter trips, this outlook indicates that hotel prices are unlikely to drop significantly in the near term. Travelers should prepare for continued high costs as the peak holiday booking window remains active and demand remains robust across the industry.

FAQ

What does RevPAR mean for my travel budget?

RevPAR reflects both how much a hotel charges and how many rooms are filled. When RevPAR rises, it generally means you will encounter higher nightly rates at checkout.

Is this price increase happening everywhere?

While North America saw a 7.4% increase, growth was seen globally, with the Asia Pacific region seeing even higher gains of over 9%.