The early performance story for U.S. hotels in 2026 is best described as uneven rather than uniformly weak. After a strong start to the year, the week ending January 10 marked the first negative week of 2026, with RevPAR down 3.3% year over year. While that shift may appear abrupt, the underlying drivers suggest something more nuanced: national performance is being skewed by a narrow set of markets and demand dynamics rather than signaling broad deterioration across the lodging sector.
Much of the pressure sits at the intersection of localized disruptions; concentrated group demand declines, shifting weekday versus weekend patterns, and the timing of debt maturities tied to recent transaction activity. Understanding where stress is forming requires moving beyond headline numbers and examining market-specific performance, segment-level demand trends, and ownership timing.
Throughout this report, references to “hurricane markets” reflect markets that experienced hurricane-related disruptions in 2024. Those events temporarily inflated demand through displacement, insurance activity, and recovery-related travel. As those effects fade, year-over-year comparisons in early 2026 appear sharply negative—despite the absence of new hurricane activity in 2025.
In these hurricane-impacted markets, RevPAR declined 25.5%, driven by a 10.9% drop in occupancy and a 9.2% decline in ADR. While these markets represent a relatively small share of U.S. supply, the magnitude of their normalization gives them an outsized influence on national averages.
Beyond hurricane-impacted areas, weakness was concentrated in the Top 25 markets. Excluding Las Vegas and Tampa, those markets posted a 4.1% RevPAR decline. Falling occupancy drove the result, with total U.S. room demand down approximately 310,000 room nights for the week.
Roughly 260,000 of those lost room nights came from group demand declines in the Top 25 markets. Several markets saw especially sharp pullbacks, including San Diego and Los Angeles. While Los Angeles comparisons were partially influenced by prior-year wildfire-related displacement demand, the scale of the current decline points to broader group softness.
Not all large markets struggled. St. Louis led all U.S. markets with a 34.9% increase in RevPAR, followed by Minneapolis, Nashville, San Francisco, and Phoenix, each posting double-digit gains on strong demand growth. Minneapolis saw its strongest demand increase earlier in the week, while Nashville recorded the largest total increase in room nights nationwide.
These divergent outcomes underscore that national softness is being driven by a narrow subset of markets rather than by a broad-based decline.
Demand declines remain highly localized. Among the Top 25 markets, seven posted double-digit RevPAR declines, led by San Diego and Los Angeles. In Los Angeles, the absence of last year’s wildfire-related displacement demand explains part of the year-over-year decline, but the magnitude of the drop suggests that reduced group activity is a more significant factor.
At the same time, many markets outside the Top 25 continued to perform relatively well. In the remaining non-hurricane markets, RevPAR increased slightly, supported by modest occupancy growth that offset weaker ADR. More than half of these markets posted positive RevPAR growth, reinforcing that demand softness is not system wide.
While all hotel classes posted year-over-year declines in RevPAR and occupancy, demand trends varied by segment. Upper-midscale hotels were the only class to post a net increase in demand, adding approximately 35,000 room nights for the week and building on gains from the prior week.
Importantly, this demand growth does not appear confined to markets that are otherwise outperforming. Upper-midscale demand is occurring across markets, including those experiencing broader pressure, suggesting that segment-level resilience can exist even when market-level metrics are soft.
Upper-upscale hotels experienced sharper occupancy declines than economy hotels, with nearly all of the demand decline concentrated in the Top 25 markets. Los Angeles, Orlando, San Diego, and Washington, D.C. accounted for more than half of the upper-upscale demand loss, with lower group demand cited as the primary driver.
Economy and midscale hotels posted the largest RevPAR declines overall, with hurricane-impacted markets accounting for more than half of economy demand losses. Across segments, outcomes are being shaped less by national travel demand and more by exposure to group business and localized disruptions.
Nationally, Monday through Thursday RevPAR declined 4.7%, reflecting ongoing weaknesses in weekday corporate and group travel. This trend aligns closely with the decline in group demand across large markets and continues to weigh overall performance.
Weekend results were notably stronger. In non-hurricane markets, weekend RevPAR increased 3.3%, driven primarily by occupancy growth. Even within the Top 25 markets—excluding Las Vegas and Tampa—weekend RevPAR rose 0.4%. More than one-third of non-hurricane markets posted double-digit weekend RevPAR gains.
This widening gap between weekday and weekend performance is reshaping revenue management strategies, staffing models, and underwriting assumptions across the sector.
Beyond operating performance, capital structure considerations are becoming increasingly important. Properties acquired during the 2021–2022 transaction window are approaching five-year debt maturities at a time when refinancing conditions are tighter and performance has normalized.
Even in markets that remain relatively stable, refinancing pressure may force action. Identifying ownership cohorts based on purchase timing allows for a more proactive and targeted approach to sourcing potential opportunities.
Tulsa, Oklahoma illustrates how market familiarity can provide an advantage. Using CoStar data, economy through upper-midscale properties in the market were analyzed by purchase date, creating a matrix that highlights recent transaction activity.
The goal is not to label Tulsa as distressed, but to identify which owners may face refinancing pressure first. Buyers who acquired properties between 2021 and late 2022 are now approaching critical debt maturities. In a market with fragmented ownership and manageable asset sizes, this creates a defined pool of properties where stress may surface earlier than in national data.
The lodging outlook entering 2026 remains uneven rather than uniformly weak. National softness is being driven by the normalization of hurricane-impacted markets from 2024 and by demand declines concentrated in select large metros. At the same time, upper midscale remains the only segment adding demand; weekend performance continues to outpace weekdays, and group exposure remains the clearest pressure point in major markets.
For owners, buyers, and capital providers, this environment rewards selectivity and disciplined analysis. Understanding where stress is forming—whether through market dynamics, segment behavior, or debt timing—matters more than reacting to national headlines. For those seeking to better understand how these trends apply to specific markets, assets, or strategies, we encourage you to contact our team to discuss how we can help navigate the evolving hospitality landscape in 2026.
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.
