Colliers, the global real estate services and investment management firm, has released a new report forecasting measured growth in the US hospitality sector through 2026. The outlook points to a disciplined recovery, with modest gains in lodging demand, stable occupancy, and a gradual uptick in pricing power, supported by two key catalysts: the FIFA World Cup and the accelerating adoption of artificial intelligence.
World Cup to Drive Temporary Demand Spike
The FIFA World Cup, set to take place across North America in 2026, is expected to deliver a significant short-term boost to hotel performance in host markets. Colliers estimates the tournament will generate between $300 million and $800 million in economic impact across the 16 host cities. In May alone, the event is projected to add 70,000 new jobs in the hospitality sector. Airbnb guests alone are anticipated to contribute $3.6 billion in direct economic impact, underscoring the scale of the influx.
While the World Cup will temporarily lift occupancy and average daily rates in host markets, the broader US lodging market is expected to see more modest gains. Colliers projects overall lodging demand growth of 1.3% through 2026, with hotel rates rising just 1.35% — a sign that pricing power is recovering slowly from pandemic-era lows. Occupancy is forecast to stabilize at 64.1%, still below pre-COVID peaks but reflecting a steady recovery trajectory.
AI Becomes Integral to Hotel Operations
The report highlights the growing role of artificial intelligence in reshaping hotel operations, guest services, and revenue management. Venture capital investment is fueling innovation, with AI tools being deployed to optimize pricing, personalize guest experiences, and streamline back-of-house processes. Mark Owens, Vice Chair and Leader of the Hospitality Practice Group at Colliers, noted that AI is becoming integral to the sector's evolution. "AI is no longer a futuristic concept; it is a practical tool that is enhancing efficiency and driving value across the hospitality value chain," Owens said.
This trend aligns with broader industry shifts seen globally. For instance, TICA President Prachoom Tantiprasertsuk has emphasized the importance of technology-led transformation in Thai hospitality, while HOFTEL's Simon Allison has urged investors to look beyond buzzwords in Southeast Asia — a reminder that AI adoption must be grounded in real operational gains.
Domestic Luxury Travel Drives Demand
Domestic travel remains the primary driver of US lodging demand, with affluent travelers increasingly seeking luxury experiences. This trend is supporting premium properties and resort markets, even as overall rate growth remains subdued. Colliers expects value positioning and targeted investment to define the recovery, as hoteliers focus on capturing high-yield segments rather than chasing broad occupancy gains.
The report's findings come as the US hospitality industry continues to navigate a post-pandemic landscape marked by shifting traveler preferences and rising operational costs. While the World Cup offers a near-term catalyst, the longer-term outlook hinges on the industry's ability to embrace technology and adapt to evolving demand patterns. As VisitBritain's Brazil Mission 2026 targets growth in long-stay travelers and regional spend, similar strategies may prove relevant for US destinations looking to extend the World Cup's impact beyond the tournament itself.
Colliers' analysis suggests that the US hospitality sector is on a path of steady, if unspectacular, growth. The combination of a major sporting event and technological innovation provides a foundation for recovery, but hoteliers will need to remain disciplined in their approach to pricing, investment, and guest experience to capitalize on the opportunities ahead.
