By Brittney Sherman
Hotel performance in the western U.S. is increasingly diverging, shaped by event-driven demand on one hand and new room supply on the other. Gateway markets with global connectivity are expected to continue outperforming, led by San Francisco–San Mateo.
San Francisco is positioned for another year of solid hotel growth in 2026, supported by a recovering convention calendar, major events, rising international visitation, and limited new hotel supply. While growth is expected to moderate from the strong rebound seen in 2025, gains in occupancy and average daily rates are projected to support continued improvement in revenue per available room.
Other large markets, including Los Angeles, are seeing similar dynamics as major sporting events help offset new supply. By contrast, secondary California markets such as Sacramento and Oakland face headwinds, with new hotel deliveries outpacing demand growth and putting downward pressure on occupancy and pricing.
Read More HERE!