The hospitality industry entered 2026 navigating weather volatility, uneven market performance, supply expansion, and shifting economic signals. January 2026 hotel performance data underscores how sensitive the U.S. hotel market remains to disruption—while also revealing signs of stabilization beneath the surface. From Winter Storm Fern’s nationwide impact to extended stay pipeline concentration and moderating economic indicators, early 2026 presents a hospitality market defined more by recalibration than acceleration.
U.S. hotels closed out January with significant swings driven by Winter Storm Fern, which disrupted travel across nearly 2,000 miles and directly affected 74 hotel markets.
For the week of January 25–31, national RevPAR fell 4%, driven by a 2.4 percentage-point decline in occupancy while ADR increased just 0.2%.
Sunday, January 25 stood in sharp contrast to the rest of the week. RevPAR surged 9.5%, and demand rose 9.4%, fueled by widespread airline cancellations and power outages. Airport hotels saw demand jump 32% and RevPAR increase 46%, compared to high-single digit gains in other location types.
Markets within the storm’s path experienced a 5.5 percentage-point occupancy increase on Sunday, driven by a 14.9% increase in demand. Markets outside the storm path also felt the downstream effects of airline disruptions, with room demand increasing 5.8%.
Monday through Wednesday reversed those gains. U.S. hotel RevPAR dropped 8.8% and demand declined 8.9%. Six states remained under states of emergency, and infrastructure damage significantly weighed on travel.
From Monday to Wednesday, demand declined by 887,000 rooms. Fern-affected markets accounted for 69% of that loss. In those markets, occupancy fell 8.6 percentage points and ADR declined 2.3%.
From Thursday through Sunday, performance remained negative but stabilized somewhat. RevPAR fell 2.3% and demand declined 1.4%. Markets directly in the storm’s path continued to see sharper declines.
Nashville was a notable exception. Roughly half the population lost power at the storm’s peak. Hotels discounted rates for displaced residents, leading to a 27.3% jump in demand and a 13.8 percentage-point increase in occupancy. Despite a 13.8% ADR decline, weekly RevPAR rose 7%.
In addition to Winter Storm Fern, the industry was still contending with weakness in hurricane-impacted markets from the 2024 hurricane season. These markets posted an 18.5% RevPAR decline on a 13.8% drop in demand during the week. Las Vegas saw RevPAR fall 14.2% as demand declined 10.3%, partly due to group shifts including the Total Product Expo date change.
Excluding storm markets, 2024 hurricane-impacted markets, and Las Vegas, RevPAR in the remaining U.S. hotel markets rose 1.4%, entirely driven by ADR growth.
Removing Winter Storm Fern markets, 2024 hurricane-impacted markets, and Las Vegas reveals a steadier performance picture.
In the remaining markets, RevPAR increased between 1.4% and 1.6%. The Top 25 U.S. markets rose 1.1%, while all other markets increased 2.2%. Secondary and tertiary markets continued to outperform major metros.
Louisiana North stood out with RevPAR growth of 68.4%, driven by construction activity tied to Meta’s $10 billion AI data center campus outside Monroe. Texas North and Texas East also posted strong gains, and 13 additional markets recorded double-digit RevPAR growth.
Group demand in luxury and upper-upscale hotels declined 5.5% during the storm week, peaking at a 12.9% drop on Monday. Major storm-affected markets including Atlanta, Dallas, Nashville, and Washington, D.C. saw pronounced group declines.
Upper-upscale through upper-midscale hotels accounted for 84% of total demand decline during the week. Luxury posted the lightest RevPAR decline at 0.5%.
Economy and midscale hotels accounted for just 7% of total industry demand decline, and economy hotels increased occupancy year over year. In Nashville, midscale and economy hotels posted a 67.5% RevPAR increase driven by a 59.6% increase in rooms sold.
Market positioning and segment mix continue to influence resilience during disruption.
Preliminary January results show U.S. hotel RevPAR increased 0.1%, which would mark the first monthly gain in 10 months if finalized.
ADR rose 0.4% for the month, below the 12-month average of 0.8%. Demand increased 17 days during January, but ADR surpassed inflation on only four of those days, highlighting limited pricing power.
Through January 24—before Winter Storm Fern impacted the final week—RevPAR was up 1.3% and demand had increased 1.5%. Based on daily trends prior to the storm, RevPAR was expected to rise approximately 1.1%.
Excluding 2024 hurricane-impacted markets (-17.7%) and Las Vegas (-4.4%), the rest of the country posted 1.6% RevPAR growth.
Luxury hotels were the only class to post positive RevPAR growth for the month (+2.1%). Most other classes were flat, while midscale and economy declined 2.2% and 5.1%, respectively.
The data suggests stabilization in demand, but continued ADR softness across much of the hospitality industry.
Extended stay represents a meaningful portion of the U.S. hotel supply.
There are approximately 11,685 extended stay properties totaling 1,303,939 rooms. The total U.S. hotel room count is typically around 5.7 million.
An additional 2,037 extended stay properties are under development, accounting for 212,295 rooms.
Across 175 U.S. markets with extended stay supply, the average pipeline-to-existing-supply ratio is 16.28%. The largest pipelines tend to correspond with markets that already have significant existing extended stay supply.
In Texas Hill Country, which includes markets such as San Antonio and surrounding submarkets, development activity may be influenced by labor consistency challenges. Similarly, in Texas North, which includes the Dallas–Fort Worth region, labor availability remains a consideration as new extended stay supply moves through the pipeline.
In California markets, regulations tied to hotel room counts, along with rising wages and labor-related operating costs, may incentivize developers to favor extended stay formats.
Columbus, Ohio shows a high pipeline percentage relative to existing supply, driven by a comparatively limited base of current product.
Extended stay growth remains concentrated in already active markets rather than expanding into underserved areas.
Anticipated fiscal stimulus in Japan, including tax cuts without meaningful spending cuts, may require the Bank of Japan to remain accommodative and intervene in debt markets.
As Japanese debt yields decline, foreign debt—particularly higher-yielding U.S. Treasuries—becomes more attractive. Lower domestic yields in Japan may also push institutional capital outward in search of returns, potentially increasing capital flows into U.S. markets.
While hotels may not see a direct impact, structured debt pricing tied to discount rates and benchmark yields could become more favorable if global yields compress.
At the same time, a weaker yen could increase Japan’s tourism competitiveness, creating additional travel competition for U.S. markets.
Initial jobless claims rose by 22,000 to 231,000 in the last week of January. Continuing claims increased to 1,844,000.
January job cuts totaled 108,435—the highest January level since 2009—with transportation, technology, and healthcare leading reductions. Employers announced 5,306 hiring plans, the lowest January total on record.
Job openings fell by 386,000 to 6.542 million in December, the lowest since September 2020. Openings are returning toward the 20-year average following elevated levels during the 2020–2022 fiscal stimulus period.
Inflation, as measured by Trueflation, is trending lower overall.
Moderating inflation and softer labor data suggest interest rates may move toward improving affordability rather than driving asset appreciation. For hotel owners and investors, the environment supports modest transaction tailwinds tied to debt affordability—not a valuation surge.
Early 2026 hospitality trends reflect volatility layered over normalization. Winter Storm Fern demonstrated how quickly hotel performance can shift, yet underlying markets—when excluding storm-affected regions—show steady ADR-driven growth. Extended stay development remains active, though supply is clustering in already competitive markets. Economic data signals affordability rather than expansion.
There may be no imminent boom, but moderating inflation, improving debt conditions, and localized economic catalysts create selective opportunity.
If you are evaluating a hotel acquisition, disposition, refinancing, or repositioning strategy, understanding these hospitality industry trends is critical. Contact our team today to discuss how these market dynamics may impact your property or investment strategy.
Jourdyn leads the strategic marketing initiatives for NewGen Advisory, overseeing brand development, market positioning, communications, and business growth efforts across the firm.
With more than a decade of experience in marketing and business development, Jourdyn specializes in building brands, creating demand-generation strategies, developing thought leadership programs, and executing integrated marketing campaigns that drive measurable business results. Her expertise spans digital marketing, public relations, content strategy, events, social media, lead generation, and corporate communications.
At NewGen, Jourdyn is responsible for shaping and executing the firm’s marketing strategy, ensuring consistent brand visibility across all channels while supporting advisors, clients, and strategic initiatives nationwide. She works closely with leadership to develop campaigns, elevate industry presence, strengthen client engagement, and position NewGen as a trusted advisor within the hospitality investment sector.
Jourdyn holds a Bachelor of Arts in Mass Communication and Media Studies from Arizona State University and a Master of Business Administration (MBA) with an emphasis in Marketing from Grand Canyon University.
Most mornings you’ll find Jourdyn in the gym before sunrise and spending time with her husband and children.
Allysia Howerton joined NewGen Advisory in 2026 as a Pipeline & Transaction Assistant, relocating from St. Louis, MO to Arizona to take on the role. She brings a background spanning property management, client services, sales, and administrative leadership, with a track record of managing complex workflows and keeping transactions moving efficiently from inception to close.
Known for her organization, attention to detail, and relationship-driven approach, Allysia supports transaction management, pipeline coordination, and day-to-day brokerage operations — and is passionate about growing her career within the hospitality real estate industry.
Outside of work, she enjoys discovering new coffee shops and restaurants, traveling to experience new cultures, and spending time with her dogs.
2 years
Josie Numedahl joined NewGen Advisory in July 2024 as a Real Estate Assistant (REA). Originally from Iowa, she relocated to Arizona to pursue her education, graduating from Grand Canyon University in 2022 with a Bachelor’s degree in Marketing and Advertising.
Josie began her professional career as a recruiter in the finance and accounting sector, and brings that client-facing, detail-oriented background to her work at NewGen.
Outside of work, she enjoys reading, hiking, exploring local coffee shops, and spending time with friends.
X years
Anthony is the Staff Accountant for NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC, working directly under CFO Michael Lepore to handle day-to-day accounting functions across all NewGen operations.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets.
Prior to joining NewGen, Anthony completed coursework at Paradise Valley Community College before co-founding a family business that produced custom-wrapped die-cast model cars for corporate clients — handling vehicle customization, display stands, and branded packaging. Serving as Director of Operations, he gained hands-on experience in management, production workflows, and running a business from the ground up.
Outside of work, Anthony is a lifelong ice hockey player with a passion for motorsports — particularly motocross and classic cars. Among his favorites: the 1963 C2 Corvette Sting Ray, the 1965 Shelby Cobra S/C, and the 1971 Plymouth Hemi ‘Cuda. He hopes to one day own and operate a bookkeeping firm serving small businesses.
X years
Nick serves as Director of Operations for NewGen Worldwide and NewGen Advisory, bringing a detail-oriented, forward-thinking approach to supporting the company’s continued growth. A Minneapolis native, Nick studied at Denison University and the University of Minnesota before making his way to Arizona, where he now lives in Mesa.
He spent a decade in the hospitality industry as a server, bartender, and restaurant manager — hands-on experience that gave him a strong operational foundation and a natural fit within NewGen’s hospitality-focused business.
Outside of work, Nick is an avid writer with a passion for art, photography, and travel, and enjoys documenting his experiences through the lens.
X years
Nycole serves as Chief of Staff at NewGen Advisory, where she trains and manages the Real Estate Assistant (REA) team. She works closely with REAs to ensure agents receive consistent, high-quality support throughout every stage of a deal — from contract to close.
Alongside the Office Manager, Nycole leads onboarding for new agents, REAs, and team members across NewGen Worldwide’s subsidiaries, and has developed a training library to streamline the process for incoming staff. She is also actively involved in evaluating and implementing new platforms to improve agent and REA workflows, while providing leadership with the data needed to monitor KPIs and track revenue goals.
Her background in franchise operations management — spanning startups to scaling franchises — makes her a versatile and valuable member of the NewGen team.
20+ years
Michael is the Chief Financial Officer of NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC — a diversified real estate investment and capital solutions firm focused on creative, flexible solutions. Michael and his team oversee day-to-day accounting, budgeting, forecasting, and financial modeling across all NewGen operations.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets.
Prior to joining NewGen, Michael built over 20 years of experience in accounting, tax, and operations management serving small to mid-sized businesses. He holds active CPA licenses in both New York and Arizona. His career spans public accounting — including a role as Audit Manager at PricewaterhouseCoopers — as well as private accounting and business ownership, giving him a broad, hands-on command of accounting and management functions. That dual perspective allows him to bring both tax strategy and business strategy to bear when evaluating financial decisions. He is a member of the American Institute of Certified Public Accountants (AICPA) and the Arizona Society of Certified Public Accountants (ASCPA).
A proud Italian-American, Michael lives in Scottsdale with his wife, Patty, and their three children, Alyssa, Anthony, and Joey. Outside of work, he coaches ice hockey and has a passion for cooking Italian food.
X years
Kyle is a co-founder, Principal, and Chief Executive Officer of NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC — a diversified real estate investment firm focused on creative, flexible solutions. Beyond his broad responsibilities as CEO, Kyle’s primary focus is leading Green Card Fund, developing and implementing capital solutions domestically and internationally, and identifying attractive investment opportunities.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets — a natural evolution of NewGen Worldwide’s business model, built on business partners Girish Patel and Dan Rama’s lifetime experience in the industry. Kyle’s financial acumen and creative approach to structuring deals help NewGen Advisory clients identify and secure profitable opportunities.
Kyle earned a B.A. in Interdisciplinary Studies from Arizona State University with a focus in Business and Urban Planning. He has long been involved with the Greater Phoenix Economic Council’s (GPEC) International Leadership Council, and in 2016 was elected to the Board of Directors of Invest in the USA (IIUSA), the national EB-5 trade association, where he actively contributes to legislative reform efforts and the permanent reauthorization of the EB-5 program.
Kyle splits his time between company offices in Phoenix, AZ and Washington, D.C. Outside of work, he is an avid reader, global traveler, and snowboarder — and after logging over a million miles as a passenger, he has recently taken to the cockpit, learning to fly himself.
20+ years
Girish Patel is a co-founder and Principal of NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC — a diversified real estate investment and capital solutions firm focused on creative, flexible solutions across hospitality and healthcare. Among his core responsibilities are leading strategic initiatives, overseeing financial management, and driving real estate investment acquisitions.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets — a natural evolution of NewGen Worldwide’s business model, grounded in Girish’s and business partner Dan Rama’s lifetime experience in the industry. Having grown up in his family’s hotel business as an immigrant, Girish developed a bottom-up understanding of hospitality — mastering operations before becoming an investor, lender, and consultant. That ground-level perspective, tested across multiple economic cycles, underpins his 20+ years as a successful business owner and brings a distinctive depth of insight to NGA’s clients and investors.
Committed to continuous learning and giving back, Girish established the RC Patel Memorial Scholarship for students pursuing careers in real estate investment. He also serves on the Board of Directors of Global Ties Arizona, an organization that strengthens international relationships by making exchange programs more impactful.
X years
Dan is a co-founder and Principal of NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC — a diversified real estate investment and capital solutions firm focused on creative, flexible solutions. His primary role is leading NewGen Advisory and serving as its Designated Broker in Arizona.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets — a natural evolution of NewGen Worldwide’s business model, built on Dan’s and business partner Girish Patel’s lifetime experience in the industry. Throughout his career, Dan has been involved in the disposition of over $600 million in hospitality assets, advising clients on acquisitions, mergers, and divestitures across the United States.
Dan began his career as a hotel operator and owner in 1994 following his studies at the University of Arizona, going on to build a portfolio as a franchisee of Red Brick Pizza, Holiday Inn, Ramada Inn, and Comfort Suites. He holds General Manager Certifications from Holiday Inn, Motel 6, and Days Inn, and is a Certified Hotel Owner (CHO) with a Certification for Hotel Industry Analytics (CHIA).
Beyond his company responsibilities, Dan is an active industry voice. He serves as an Ambassador with the Asian American Hotel Owners Association (AAHOA) — the largest hospitality owners association in the U.S. — and previously served as its Southwest Regional Director. He also sits on the Board of Directors of the Arizona Lodging and Tourism Association (AZLTA).
Dan lives in Gilbert, AZ with his wife, Chetna, their son Suraj, and their daughter Sonya. Outside of work, he enjoys golf and cheering on the Denver Broncos.
15+ years
Suraj is the Chief Legal Officer of NewGen Worldwide, LLC and a member of its senior leadership team, where he contributes to the operational management and strategic planning of the company and its subsidiaries — including Green Card Fund and NewGen Advisory. NewGen Worldwide is a diversified firm engaged in real estate investments, creative capital solutions, and advisory services for the entrepreneurial investor.
Suraj first served as outside counsel for Green Card Fund and NewGen Worldwide from 2008 to 2014 before joining the organization as Chief Legal Officer. In this role, he leads the company’s legal, regulatory, and corporate governance functions, with responsibility spanning real estate, risk management, contractual relations, and investment strategies. He also oversees the business administration of NewGen Advisory, a full-service commercial real estate brokerage specializing in hospitality assets.
Prior to joining NewGen, Suraj was Managing Partner of Bhakta & Associates, PLLC, a full-service business law firm where he represented a broad range of clients across acquisitions and sales, corporate structuring, contracts, franchise law, development and construction, and equity and debt financing.
A native of Ohio, Suraj graduated from The Ohio State University in 1999 with a B.S. in Business Administration and earned his J.D. from Case Western Reserve University in 2002. He resides in Peoria, AZ with his wife, Neena, and their two sons, Shiv and Soham.
