2Q26 Hospitality Earnings Summary

hotelAVE 2Q26 Hospitality Earnings Summary is now available! A glimpse:

- 2026 U.S. RevPAR growth accelerated for 10 of the 12 companies we track; C-corps ranged 1.3% to 6.7% with Choice and Wyndham (bellwethers for lower end segments) at the low end and Hilton and Hyatt at the upper end. Median REIT RevPAR growth was 7.0%, mostly rate driven
- Everyone raised YE26 RevPAR guidance by 70 to 150 bps, 2H26 outlooks increased mainly due to stronger ADR growth in corporate transient and group bookings
- Airbnb benefitted the most from the rebound in leisure demand with 2Q revenue growth of 17%: For the hotels, US leisure RevPAR growth ranged from 1.6% to 7.0% in 2Q26, while cruise net yields (like RevPAR) grew only 1.2% to 2.2% in constant currency
- 2026 business transient revenue grew 2.0% to 5.7% for Hyatt, Marriott, HOST and Hilton, 5; led by midweek business transient and infrastructure/data center demand. Airlines reported strong growth in managed corporate revenue ranging from 26% to 30% in 2Q26
- World Cup impact varied: Hilton reported that demand exceeded expectations and DiamondRock and Pebblebrook attributed 90 bps and 60-100 bps of 2Q26 RevPAR growth to the World Cup, respectively. Some REIT’s reported group displacement from host cities in June
- Marriott, Host and Ryman reported 2026 full year group revenue OTB ranging from 5 to 8.8% ahead of STLY, driven by corporate. HOST reported 4Q26 growth pace of 10% while Park’s 3Q26 pace is up over 15% versus STLY
- 2Q26 REIT EBITDA margins improved by a (straight line) average of 110 bps and 1H26 by 130 bps, driven by rate growth and lower fixed costs
- Capital deployment continues:Park exited four non-core hotels for $65M and reopened Royal Palm after a $100M+ renovation; HOST sold two Four Seasons; Braemar has Pier House under contract at $190M. The market is awaiting the closing of the hotels in the Strategic Portfolio