U.S. Hotel Performance Climbs in Early March, Led by Vegas and San Diego

U.S. hotel performance strengthened in the first full week of March, with fresh data showing gains in occupancy, average daily rate and revenue per available room, led by standout results in Las Vegas and San Diego.

National Metrics Turn Upward in First Week of March

Publicly available data from CoStar for the week ending March 7, 2026 indicates that key U.S. hotel performance indicators improved both week over week and year over year. Industry coverage summarizing the report notes that national occupancy inched higher compared with late February, while average daily rate (ADR) and revenue per available room (RevPAR) also advanced, reversing some of the softness seen at the end of the month.

Reports indicate that the improvement was broad-based across chain scales, with upper midscale through upscale properties benefiting from stronger transient and group demand. While exact figures vary by segment, the national trend points to continued resilience in leisure-oriented travel and a gradual firming in business and group bookings heading into the spring conference season.

Analysts tracking the data highlight that the March 7 week marked a turning point from mixed results reported for late February, when occupancy edged up but ADR and RevPAR came under pressure. By early March, stronger pricing power combined with modest demand growth to push RevPAR higher on both a week-over-week and year-over-year basis, signaling healthier revenue conditions for operators.

Las Vegas Delivers the Strongest Gains Across Key Measures

Within the national picture, Las Vegas emerged as the clear leader, with CoStar’s weekly report describing the market as posting the highest increases across all three major performance indicators: occupancy, ADR and RevPAR. Industry write-ups summarizing the data note that the city’s hotels captured some of the sharpest revenue gains among the top 25 U.S. markets during the March 7 reporting week.

Several factors contributed to the outperformance in Las Vegas. A busy calendar of conventions and large-scale events helped drive midweek group business, while weekend leisure travel remained robust. With room demand elevated, operators were able to lift rates, translating into double-digit RevPAR improvement compared with the same week a year earlier, according to published analyses of the CoStar figures.

The strength in Las Vegas also reflects the market’s broader momentum following a period of normalization after last year’s major event cycle. While comparisons have been volatile in recent months due to one-off events in 2024, the early March data suggests the destination is regaining a more stable, high-performing footing, supported by a diverse mix of meetings, entertainment and gaming demand.

San Diego Rides Occupancy Surge to Steep RevPAR Growth

San Diego joined Las Vegas at the top of the leader board, posting one of the largest occupancy increases among major U.S. markets for the week ending March 7. CoStar’s report, as summarized in trade coverage, indicates that San Diego’s occupancy rose by double digits to the mid-70 percent range, helping generate one of the strongest RevPAR gains in the country.

Local tourism reports show that San Diego’s hotels benefited from a combination of steady leisure travel, regional drive-in demand and a strengthening convention calendar at the downtown waterfront. With more rooms filled across the city and coastal submarkets, higher realized rates translated efficiently into RevPAR, underscoring how quickly revenue can respond when occupancy tightens.

The early March rebound also marks a contrast with some of San Diego’s performance swings in 2025, when shifts in convention timings produced periodic soft spots in demand. The latest figures suggest that the destination is entering 2026 on firmer footing, with a healthier balance between group and leisure bookings supporting both midweek and weekend performance.

Top 25 Markets Show Diverging Early-Spring Trajectories

Beyond Las Vegas and San Diego, CoStar data shows a mixed but generally improving landscape across the top 25 U.S. hotel markets in early March. Some large urban destinations, including major convention and gateway cities, reported modest increases in occupancy and ADR as group travel and corporate events continued to recover. Others saw flatter trends, reflecting more uneven local demand and competitive new supply.

Industry analyses point out that markets with strong event calendars, major sports programming or favorable weather conditions during the March 7 week tended to outperform. Sunbelt and coastal leisure destinations captured early spring break and shoulder-season travel, while select Midwestern and Northeastern cities leaned more heavily on meetings, incentives and trade shows to lift midweek results.

At the same time, a subset of markets continued to lag the national averages, particularly where new hotel openings have outpaced demand or where convention calendars remained lighter than historical norms. For owners and operators in those cities, the early March data underscores the need for disciplined revenue management and careful cost control as they navigate a slower pace of recovery.

What Rising March Metrics Signal for the Spring Travel Season

The improvement in U.S. hotel performance in early March is being closely watched as an indicator for the broader spring travel season. Analysts note that stronger metrics in the first full week of the month often foreshadow firmer demand through the end of March and into April, as school holidays, conferences and warmer weather stimulate both leisure and business travel.

Forward-looking commentary built around CoStar’s data suggests that operators in high-performing markets like Las Vegas and San Diego may continue to enjoy favorable conditions, provided macroeconomic trends remain relatively stable. In these destinations, the combination of rising occupancy and solid rate growth could support continued RevPAR outperformance compared with the national average.

For the industry as a whole, the early March uptick reinforces expectations for moderate full-year growth in 2026, following a year of more subdued gains. While headwinds such as higher operating costs and uneven corporate travel remain, the latest figures indicate that demand for U.S. hotel stays is holding up, with leading markets demonstrating that targeted events and strong destination appeal can still deliver meaningful revenue growth.