Quarterly Hotel Update, as of June 2026 (Q2)
The following analysis of hotel performance within Central Counties Tourism (RTO6) for the second quarter (Q2) of 2026 reveals a mixed performance, with record-high room rates and revenue offsetting a moderate decline in hotel occupancy.
Q2 2026 Performance Overview
The Q2 2026 hotel data for RTO6 (April–June) presents a mixed but ultimately encouraging picture for our stakeholders. While hotel occupancy* softened compared with previous years, stronger room rates and record revenue indicate that the region continues to attract visitors who are willing to spend more, creating positive economic impacts across the sector.
During Q2 2026, average hotel occupancy reached 74.7%, down from 78.2% in 2025, 79.6% in 2024, and 81.3% in 2023. Despite this noticeable ongoing decline, there has actually been an average 4.3% increase on the supply side in Q2 2026 vs 2024.
April was particularly soft at 68.7% occupancy, although demand improved significantly in May (78.2%) and June (77.1%); matching our seasonality curve.
*Occupancy percentage is calculated by dividing Demand (number of hotel rooms booked) by Supply (number of available hotel rooms); an increase in the number of available hotel rooms will lower the occupancy percentage.
Record Revenue Despite Lower Occupancy
Notwithstanding the lower occupancy levels, the region achieved its strongest Q2 revenue performance in the four-year comparison period. Hotels generated $118.9 million in revenue during Q2 2026, exceeding $112.8 million in 2025, $112.1 million in 2024, and $112.9 million in 2023. June was especially notable, producing a record $45.8 million in monthly hotel revenue. Year-to-date revenue through June also reached $207.6 million, the highest among all four years analyzed.
Stronger Rates Drive Performance
The key driver behind this revenue growth was a significant increase in room rates. The Average Daily Rate (ADR) reached $193.17 in Q2 2026, compared with $178.54 in 2025, representing an increase of more than 8%.
June achieved an ADR of $214.41, the highest monthly rate in the dataset – first time crossing the $200 threshold in Q2; growing the region’s shoulder season ahead of the peak summer months. This indicates that hotels were successful in maintaining pricing power and attracting higher-value visitors despite accommodating a smaller proportion of available rooms. Generating more revenue with less sold rooms.
Another encouraging indicator is Revenue Per Available Room (RevPAR), a measure combining occupancy and pricing performance. Q2 2026 RevPAR reached $144.63, outperforming 2025 ($139.85) and 2024 ($140.54), while approaching the 2023 benchmark of $145.87. This suggests that stronger rates largely offset lower occupancy, helping hotels maintain profitability and continue contributing to the regional tourism economy.
What This Means for Tourism Stakeholders
For our stakeholders, a few takeaways emerge from these results. First, the region continues to demonstrate strong visitor spending, even as room demand becomes more competitive with an increase in available rooms. Higher ADR and revenue suggest that our region is successfully attracting travelers with greater purchasing power, benefiting restaurants, attractions, retailers, and other tourism businesses. Second, our shoulder season increased by revenue; however, the occupancy did see a decline, particularly in April, when occupancy lagged significantly behind historical levels. Q3, July – September numbers should be interesting to observe.
Q2 2026 can be viewed as a period of quality-over-quantity performance. Looking ahead, tourism stakeholders can build on the strong revenue and room-rate performance seen in Q2 while focusing on opportunities to strengthen occupancy. Strategic investments in destination marketing, event development, group travel, and seasonal experiences could help rebuild occupancy while preserving the strong pricing environment that is currently supporting record hotel revenues. Overall, Q2 2026 demonstrates a resilient tourism sector that continues to generate increasing economic value for the region.
Click on the regional hotel reports below to see the Occupancy, Revenue, Average Daily Rate and Revenue Per Available Room for:
Please note: Daily & Weekly Occupancy % data is also available, providing a more detailed view of demand patterns throughout the year. Check it out here.
For further assistance in identifying your target markets, please contact Tom Guerquin, Manager of Research & Development at Central Counties Tourism.
Central Counties Tourism collects aggregated quarterly hotel data from Co-Star for the available properties within our region, and each quarter, share those metrics with you. Headwaters-specific data is not published separately due to limitations in the available dataset, but it is included in the aggregrated Central Counties Tourism dataset.
