Top 5 Travel Destinations in the USA With the Strongest Hotel Pricing Growth In 2026

Like several regions in the world, North America’s hospitality industry is facing strong headwinds. Yet, certain US cities have experienced a particularly strong start to the year. What can we learn from them?

Lighthouse’s latest industry report on global hotel pricing paints a cautious outlook for H1 2026 after a challenging 2025, particularly for North America. In a nutshell:

• North America saw hotel pricing decline 4.4% in the first half of 2025.

• Pricing stabilized in H2 2025 (+0.4%), with travel demand indicators already weakening by the end of the year.

• Advertised hotel prices for H1 2026 are down 6.6% year-on-year, despite the anticipated boost from hosting the FIFA World Cup

Looking at actualized prices from January and February 2026 compared to the same period last year, nearly 3 in 4 US cities have seen averages drop. The driving factors behind this pressure on hotel pricing? Eroded consumer confidence, rising inflation and a decline in international inbound travel.

But volatility does not mean opportunity fully disappears. In fact, some destinations in the United States are experiencing significant hotel price increases despite the growing broader uncertainty. In this blog, we’ll take a closer look at their stand-out demand and pricing stories.

Below is a breakdown of the five best-performing US hotel markets so far in 2026. For independent hoteliers, the lesson is clear: demand spikes still happen. The key is spotting them early and reacting quickly with the right offer.

The ranking: Cities in the US with the highest hotel price increases in 2026

#1 Park City, Utah

• YoY hotel pricing growth: +19.89%

• Average price Jan-Feb 2025: $679.42

• Average price Jan-Feb 2026: $814.56

Park City leads the ranking with a nearly 20% year-over-year increase in actualized room rates at the start of this year. As one of the most popular skiing destinations in the US, the city benefits from strong seasonal demand driven by winter sports tourism and major events, particularly in January and February

Average nightly rates climbed from $679 to $815 year-over-year, a staggering $135 jump. Looking at the weekly pricing data, the picture becomes even more striking: rates hit $1,092 in the week of February 9 and $1,054 in the week of February 16.

The hotels that captured that revenue weren’t simply lucky, but were pricing dynamically around predictable seasonal demand spikes. If your market experiences similar seasonal peaks, avoid setting static rates months in advance. Instead, adjust pricing dynamically as demand builds to make the most of these critical opportunities.

#2 San Jose, California

• YoY hotel pricing growth: +14.20%

• Average price Jan-Feb 2025: $195.88

• Average price Jan-Feb 2026: $223.69

San Jose recorded the second strongest hotel performance in early 2026, with rate growth exceeding 14% year over year. The average actualized price even jumped to $371 for the week of February 2, likely due to several events taking place Friday through Sunday, estimated to attract 37.000 attendees in total.

Sitting at the center of Silicon Valley, the bustling city benefits from a steady flow of business travelers, as well as tech enthusiasts and domestic tourists attending numerous events throughout the year. Even in times of economic and geopolitical uncertainty, these localized demand drivers can create big pricing opportunities for hotels.

Keep a close eye on local event calendars and – depending on your location – corporate travel patterns. Conferences, trade shows and other events often drive short-term demand spikes that allow hotels to increase prices. Business guests tend to book closer to their check-in date and are generally less price-sensitive, supporting premium rates.

Do you want to be informed when events are announced near you? Lighthouse’s free Market Alerts Dashboard helps you gain insight into your own market and react quickly to any shifts. You receive:

• Real-time demand levels

• Average market price compared to yours

• Local events that drive demand

• Booking channel recommendations based on your competitors

• Highlighted pricing opportunities

• Notifications via email when the market shifts

Signing up to your personalized dashboard takes less than a minute and is completely free.

#3 Tallahassee, Florida

• YoY hotel pricing growth: +13.71%

• Average price Jan-Feb 2025: $118.03

• Average price Jan-Feb 2026: $134.21

In third place, Florida’s capital Tallahassee saw strong hotel rate recovery at the start of 2026 with average prices climbing nearly 14% after dipping in 2025. This heightened demand is mainly driven by big sports events that successfully drew higher-spending guests from across the country. Tallahassee’s appeal to a diversified mix of traveler segments (business, education, sports fans, leisure travel) further supports steady pricing power.

This case illustrates that to capture revenue effectively, it’s key to understand:

• Which events in your area repeat every year

• Which one-off events create unusual spikes

• How prices evolve year-over-year in your market

If your destination attracts a variety of tourist types as well, monitor which segment is driving bookings when and optimize your rates and channels during those specific windows. Being proactive helps you avoid underpricing or selling out too fast at high commission.

#4 Oakland, California

• YoY hotel pricing growth: +12.12%

• Average price Jan-Feb 2025: $151.26

• Average price Jan-Feb 2026: $169.59

Oakland experienced an impressive 12% YoY increase in actualized hotel prices. When we zoom out, the data points to structural travel demand growth beyond January and February 2026. The city often gets overlooked in favor of major tourism hub San Francisco, but it’s increasingly capturing Bay Area demand as travelers look for more affordable options. The city saw rates climb from $151 to $170 year-over-year, outpacing San Francisco’s 9% growth in the same period.

One factor which could explain growth in secondary cities like Oakland is travelers’ growing preference for better value or a more unique experience, causing them to look beyond traditional hotspots. We clearly saw this trend emerge from our latest global hotel pricing report. When high-demand periods fill up San Francisco’s hotels and push rates beyond what some travelers are willing to pay, Oakland benefits from that spillover.

Economic constraints and overtourism in major cities are pushing travelers toward less expensive, emerging destinations. If your hotel is located near a popular city, keep a close eye on real-time demand because you may benefit from this shift.

#5 Lakewood, Colorado

• YoY hotel pricing growth: +11.58%

• Average price Jan-Feb 2025: $90.88

• Average price Jan-Feb 2026: $101.4

Lakewood rounds out the top 5 with 11.58% year-over-year price growth. Located near Denver and the Rocky Mountains, it attracts travelers looking for convenient access to outdoor activities without staying in the busiest areas. What’s particularly striking: Denver itself is down 4.3% year-over-year over the same period.

Weekly pricing data shows consistent, steady rate levels throughout January and February 2026. Lakewood’s hotel pricing story is that of a textbook outdoor destination profile. The city experiences less volatility than the four previous destinations, with more predictable seasonality trends rather than event-driven demand spikes.

From the broader data, it looks as though the 2026 winter season enjoyed notably strong travel demand. But it doesn’t end there. Judging from the confident advertised hotel prices for the rest of the year, especially in summer, hoteliers are expecting the increased appeal to persist. These observations could be part of a wider trend of adventure and mountain tourism gaining popularity.

While seasonality can offer a guideline, recent data has taught us that traveler behavior can shift quickly and unexpectedly. To fully understand your hotel’s real pricing power, it’s important to look beyond seasonal trends. Insight into forward-looking demand is key to setting the right rates for your hotel rooms.

Why real-time data matters more than ever

Hotel demand across North America overall is in a weak spot after an already challenging 2025, particularly for . Early indicators for 2026 point towards declining prices and tighter travel budgets, influenced by inflation concerns and lower international travel to the region.

At the same time, traveler behavior has shifted on a global level:

• Value-for-money matters more than ever. Many travelers are seeking strong experiences without the premium price tag.

• Overtourism is pushing guests away from traditional hotspots, benefiting smaller or secondary markets.

• Economic uncertainty is making travel demand less predictable with sharper peaks and dips.

This is creating a much more uneven and unpredictable hotel industry. Popular destinations that previously saw strong price growth are now softening, while others are experiencing sudden demand spikes.

In short, pricing power is becoming increasingly volatile and destination-specific. What does this mean for hoteliers like you? Without the right insights, it’s easy to miss important revenue opportunities.

The most successful hotels in 2026 will be those that:

• Accurately forecast demand by spotting forward-looking signals early

• Adjust prices, restrictions and promotions instantly when demand shifts

• Continuously monitor their competitive positioning

• Focus on profitability by steering demand towards low-commission channels

Gain insight into your own market for free with Lighthouse

Even in a challenging market, the destinations above prove that pricing power still exists when demand spikes occur.

The main question to ask yourself is: What’s driving demand in your market right now, and are your rates aligned? However, for most independent hoteliers, the answer is hard to find.

Until now.

Thanks to our free Market Alerts dashboard, independent hoteliers can access tailored insights for their specific market, including:

Lighthouse’s Market Alerts dashboard helps independent hoteliers understand their own market, without the need for a revenue manager, a data team or hours of manual research every week.

Getting started takes a few minutes and costs nothing. Instead of reacting too late or lowering prices out of uncertainty, you can make confident pricing decisions backed by real-time data.

Sign up for Market Alerts below and start spotting demand and pricing opportunities in your market before your competitors do.

Laure Cremers

Laure Cremers is a content specialist at Lighthouse with a focus on hospitality technology for independent hoteliers and B&B owners. Passionate about spotting new trends in the industry, Laure simply loves translating insights into actionable tips for hospitality professionals to boost their efficiency and profitability.

About Lighthouse

Lighthouse (formerly OTA Insight) is the leading commercial platform for the travel & hospitality industry. We transform complexity into confidence by providing actionable market insights, business intelligence, and pricing tools that maximize revenue growth. We continually innovate to deliver the best platform for hospitality professionals to price more effectively, measure performance more efficiently, and understand the market in new ways.

Trusted by over 65,000 hotels in 185 countries, Lighthouse is the only solution that provides real-time hotel and short-term rental data in a single platform. We strive to deliver the best possible experience with unmatched customer service. We consider our clients as true partners – their success is our success.

Source: View the original article at Lighthouse.