The US hotel industry is entering a pivotal phase. After years of post-pandemic recalibration, performance data from early 2026 points to a market that is stabilizing, but one that demands sharper operational thinking than ever before.
For hotel owners and operators, that means one thing above all else: getting your people strategy right.
At Hastings People, we work with hospitality businesses across the country to connect them with the talent they need to compete.
Here is our read on the current landscape and what it means for your hiring.
The Market Is Recovering, But Unevenly
Recent data from CoStar shows the US hotel industry posting positive year-over-year comparisons through May 2026. National occupancy climbed to 66.5%, with standout performers like Orlando recording occupancy gains of over 13% and RevPAR growth of nearly 24%. San Francisco, meanwhile, led on average daily rate gains.
But not every market is thriving. San Diego and Detroit posted meaningful declines, a reminder that recovery in this industry remains deeply localized. For operators, this uneven performance underscores why agile, market-aware staffing is so critical. A one-size-fits-all approach to your workforce simply will not cut it in 2026.
Margin Pressure Is Real and Talent Is a Lever
The American Hotel & Lodging Association projects total hotel guest spending to reach nearly $805 billion in 2026, a 1.7% increase over 2025. That sounds promising. But beneath the headline figure, operators are navigating significant margin compression.
Industry analysts at PwC and CoStar are consistent on this point: supply is growing faster than demand, labor costs remain elevated, and RevPAR growth is projected at a modest 0–1% for the full year. With gross operating profit per available room still sitting at roughly 90% of 2019 levels, efficiency is everything.
This is where strategic recruitment becomes a genuine competitive advantage. Hotels that invest in the right leadership, experienced general managers, revenue-focused commercial directors, and operationally sharp department heads, are better positioned to protect margins while maintaining guest experience standards.
Major Events Are Creating a Talent Surge
One of the most significant factors shaping 2026 demand is the calendar. The FIFA World Cup and America250 celebrations are driving elevated travel volumes across key US markets. These events do not just lift occupancy, they stress-test your workforce.
High-volume, high-expectation event periods expose gaps in teams quickly. Properties that have proactively built out their front-of-house leadership, F&B operations, and events management talent are the ones that will capitalize on these moments and build the reputational gains that follow.
If your property is in or near a major event market and you have not yet reviewed your staffing structure, now is the time.
Luxury and Upper-Upscale Are Leading Supply Growth
PwC's latest Hospitality Directions report highlights that luxury hotels are experiencing the strongest supply growth of any chain scale in 2026. This expansion is bringing new competition and with it, a war for experienced, service-oriented talent.
Luxury hospitality professionals are in high demand and short supply. Whether you are opening a new property or repositioning an existing one, access to specialist candidates with the right brand experience and guest service credentials is increasingly difficult to achieve through traditional hiring channels alone.
Working with a specialist hospitality recruitment agency gives you access to a pre-vetted, active talent pool that is not necessarily visible on job boards, and the industry relationships to move quickly when the right opportunity arises.
The Strategic Takeaway for Hotel Operators
The 2026 landscape rewards those who are proactive. Here is what we are advising our clients right now:
Audit your leadership bench. In a margin-pressured environment, the quality of your operational leadership has a direct impact on the bottom line. Now is the time to identify gaps before they become costly.
Plan for demand spikes early. Major events and seasonal surges require advance hiring. Waiting until you are under-resourced is too late.
Think beyond the job board. The best candidates are often not actively searching. A specialist recruiter can surface talent that traditional advertising will not reach.
Invest in retention. Recruitment and turnover are two sides of the same coin. Competitive compensation, clear progression pathways, and strong workplace culture reduce churn and protect your investment in talent.
Partner With Specialists Who Know Hospitality
The US hotel industry is complex, competitive, and in constant motion. Building a high-performing team requires more than posting a vacancy; it requires a deep understanding of the market, the roles, and the candidates who can make a real difference.
At Hastings People, we specialize exclusively in hospitality recruitment. From property-level operations to executive leadership, we connect hotel owners and operators with the talent that drives results.
Sources: CoStar STR Data (May 2026), AHLA 2026 State of the Industry, PwC US Hospitality Directions, Hotel News Resource