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Business travel rebound boosts hotel performance as sector recovers
Executives cited midweek business travel growth as a key driver, while Choice Hotels linked higher RevPAR to its extended stay properties near data centers.
Major hotel chains say a rebound in business travel is helping lift sector performance after a prolonged slump, even as economic and geopolitical anxieties persist, including the on off conflict in Iran and higher fuel prices, according to Bisnow. Hilton Worldwide CEO Christopher Nassetta said during an earnings call that the biggest recent change has been growth in midweek business transient demand, which is compounding gains from leisure and luxury travelers. He also pointed to expectations for improved revenue per available room through the rest of 2026. Choice Hotels Chief Financial Officer Scott Oaksmith added that data center development is contributing to results, saying about 45% of its U.S. extended stay portfolio is within 10 miles of major data centers. He said those hotels generated roughly 100 basis points higher RevPAR growth than the system average during the second quarter.
In Q3 2025, rising operating costs pushed RevPAR lower, but luxury hotel room rates bucked declines in average daily rates. For 2026, CoStar and Tourism Economics forecast average daily room rates will rise more than 3.0%, while the Global Business Travel Association projects global corporate travel spending will grow 7.2% this year to support more than 1.84 billion business trips.