HotelData.com H1 2026 Hotel Profitability Report Shows Stronger Profit Results, but a More Divided US Market
GOP margin rose 3.6 points to 44.9% year over year, but the ability to convert growing demand into profit varied sharply by chain scale
HotelData.com's H1 2026 report covering ~5,000 US hotels shows GOP margin up 3.6 points to 44.9%, with Luxury surging and Economy the only segment posting a RevPAR decline.
Photo by Actabl
Denver, Colorado – August 20, 2026 HotelData.com today released the H1 2026 Profitability Performance Report, highlighting significant profit gains through the first half of the year as gross operating profit (GOP) margin rose 3.6 points to 44.9%, compared to H1 2025. RevPAR improved 8.9% to $144.01, and TRevPAR grew 9.2% to $189.30 across the HotelData sample of approximately 5,000 U.S. hotels. The gains, however, varied significantly by chain scale.
Key Findings
GOP% rose 3.6 points year over year to 44.9% in H1; 47.2% in Q2
Luxury posted the strongest gains: ADR up 10.1%, RevPAR up 15.9%, GOP% up 4.0 points
Economy was the only chain scale with declining H1 RevPAR, down 2.7%, despite the strongest occupancy growth in the dataset
June delivered the strongest rate environment of the half: ADR up 11.4%, RevPAR up 13.1%
At the top end of the market, Luxury hotels didn’t have to choose between filling rooms and raising rates. They did both, with ADR rising 10.1% and occupancy gaining 3.4 points year over year, pushing RevPAR up 15.9% to $225.27. GOP% improved 4.0 points, from 34.6% to 38.6%.
Economy tells the opposite story. Occupancy increased 4.6 points, the strongest gain across any chain scale, but ADR fell 9.3%, leaving RevPAR down 2.7%. It was the only chain scale to post a RevPAR decline in H1. GOP% was essentially flat, down just 0.1 points. Economy attracted more guests, but at rates that couldn't convert that volume into comparable revenue or profit growth.
Between those extremes, the middle market found more balanced footing. Midscale, Upper Midscale, Upscale, and Upper Upscale all posted positive RevPAR growth. Upper Upscale delivered a strong margin result with GOP% improving 2.8 points despite modest topline growth.
Q2 strengthened the H1 story across the board. All Hotels ADR increased 8.0%, and RevPAR rose 9.4%, with GOP% improving 3.3 points to 47.2%. Economy, which had seen RevPAR fall 8.9% in Q1 as ADR declined sharply, returned to growth in Q2 at +3.3%; a sign the segment is moving in a healthier direction, even as H1 finished below 2025.
June delivered the strongest rate environment of the half, coinciding with the start of the FIFA World Cup. All Hotels ADR increased 11.4%, and RevPAR rose 13.1%. Luxury captured the most, with June ADR up 20.6% and RevPAR up approximately 24%. Economy saw occupancy rise 4.5 points while ADR held essentially flat, highlighting the very different commercial outcomes despite similar market conditions.
“The H1 data shows a market that’s getting stronger in aggregate, but the divide between the top and bottom of the chain scale continues. The industry’s bifurcation is often described in terms of affluent consumers continuing to spend while lower-income households face greater financial pressures. H1 performance reinforces that, but the distinction isn’t simply about who travels. Economy occupancy was up 4.6 points, but ADR fell 9.3%. Hotel leaders should think about this bifurcation less as a demand divide and more as a pricing-power divide. The second half of the year will test how durable that pricing power is and how much operational discipline can do to protect the margins that remain.” — Sarah McCay Tams, Head of Research and Editorial, Actabl
Access the Report
Visit HotelData.com to access the H1 2026 Profitability Performance Report and subscribe for ongoing hospitality performance insights throughout 2026. The H1 2026 Labor Report will detail the bottom-line side of the profit equation in September.
About the Data
The HotelData sample reflects approximately 5,000 US hotels across chain scales and ownership types that use Actabl's ProfitSword for financial and operational reporting. Results may differ from broader industry benchmarks due to differences in property mix, chain scale composition, cost structures, and accounting inputs. Analysis covers actual reported results from January 1 through June 30, 2026, compared with the same period in 2025.
About Actabl
Actabl is the leader in hospitality business intelligence, labor management, and hotel operations management software that provides actionable insights to above-property leaders and on-property leaders. Actabl brings together four powerful hospitality tech solutions to maximize profits for hotel operators. Actabl’s integrated solutions include ProfitSword’s business intelligence technology, Hotel Effectiveness’ complete labor optimization, Alice’s hotel operations management platform, and Transcendent’s advanced asset management and CapEx. With a global team of 300+ employees boasting more than 1,000 years of combined hospitality experience, Actabl serves the technology needs of more than 12,000 properties in hospitality markets around the world.
Media Contacts
Eric Stoessel
Communications Consultant [email protected] +1 330-554-7751
Sarah McCay Tams
Head of Research & Editorial [email protected]