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Marriott says U.S. hotel demand is broadening beyond luxury, with select-service hotels bouncing back sharply in the first quarter.
While luxury and resort hotels led in the U.S. and Canada, with RevPAR continuing to rise nearly 7%, select-service RevPAR increased 3.5%. That may be a lower rise, but it is also a notable improvement from the more than 1% decline in 2025’s fourth quarter.
The industry narrative has centered on a K-shaped economy: a strong luxury consumer pulling ahead while lower-chain scales lagged. That gap appears to be closing.
The select-service rebound is being driven in part by a shift in how Americans are traveling: “You are seeing some pivot to drive-to destinations versus fly-to destinations, given the impact of rising fuel prices on airline fares,” CEO Anthony Capuano said on the company’s first-quarter earn
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