Late last month, the American Hotel & Lodging Association (AHLA) released a new report highlighting U.S. hotel performance and operating conditions for 2025, as well as forecasts for this year.
Despite recent economic uncertainty, AHLA data shows that 2025 hotel bookings garnered $85.1 billion in local, state and federal taxes (up from the year prior) and supported more than 2 million jobs. Hotel guest spending is projected to hit $805 billion this year (a 1.7% increase year over year), perhaps buoyed by major events such as the FIFA World Cup and America’s 250th birthday.
Our Analysis: A Stable Hotel Industry Is a Boon to Travel Advisors
The report showcases the resilience of the hotel industry. Even under the duress of strong economic headwinds, growth is anticipated (more than 30,000 hotel jobs are expected to be added this year) and consumer spending is on the rise, too. This sense of stability is a boon to travel advisors, whose businesses often rely (at least in part) on their relationships with hotels. The momentum found in AHLA’s report should help advisors feel confident about their hotel partners’ ability to deliver value, consistency and a positive client experience.
Fast Facts: Jobs and Spending Are on the Rise
- In 2026, the hotel industry is expected to generate nearly $87 billion in local, state and federal taxes.
- In 2025, rising hotel operating expenses were a key factor keeping gross operating profit per available room lower (at about 90% of 2019 levels).
- The hotel industry paid almost $128 billion in wages and benefits in 2025; more jobs will be added this year, so that number is projected to reach $131 billion in 2026.
What They Are Saying:
“AHLA’s State of the Industry Report is clear in its message: hotels continue to deliver economic value in every community, and we expect to see improvement over the last, challenging year,” said Rosanna Maietta, president and CEO of AHLA. “Even as operating costs remain elevated and profitability lags in many markets, hotels supported more than 2 million jobs last year and generated tens of billions of dollars in tax revenue for governments at every level. This year, we expect consumer spending to rise and our workforce to expand — showing some positives amidst many market challenges as our industry continues to persevere.
