Global hotel rates: Q2 2026 market update

Between February and March 2026, roughly half of the destinations that Lighthouse tracks saw operators push rates up for travel in Q2 of 2026. The rest went the other direction and cut. A year ago, the majority were raising.

Where past quarters moved in regional blocks, Q2 2026 splits at the destination level. Within the same country or region, some markets are firming as arrival dates approach; others are softening.

The US/Israel-Iran conflict has sharpened those divergences, disrupting travel demand, flight routing and traveler confidence in ways that will reach well beyond the directly affected markets.

Even in destinations where demand has held, the picture is uneven. Rate gains concentrate into specific event weeks, holiday periods and supply-constrained leisure pockets. Shoulder weeks in the same markets often sit close to or below 2025 levels.

Key takeaways

• Roughly half of the destinations Lighthouse tracks raised Q2 advertised rates between February and March; the rest cut them. A year ago, nearly two-thirds were raising.

• The FIFA World Cup is pushing June rates higher in 16 host cities. Guadalajara is advertising +218.5% YoY, Houston +99.5%, Vancouver +73.3%. April and May rates in the same cities remain modest.

• The US/Israel-Iran conflict has cut Gulf pricing sharply. Dubai's April actualized rate fell to $75.43 (-59.6% YoY) from $186.49. May and June advertised rates are sitting at last year's summer levels rather than recovering.

• Europe's growth is slowing. April rates were +5.4% YoY, May +1.0%, June -1.5%. If advertised rates hold, June would be Europe's first negative monthly reading in over a year.

• Vietnam is the fastest-growing market in the dataset. Da Nang actualized at +104.1% YoY in April, Nha Trang +75.0%, Phu Quoc +70.4%. The gains hold through advertised May–June, unlike event-driven spikes elsewhere in Asia, supported by a record 6.76 million foreign arrivals in Q1 2026.

• Australia's forward pricing has reversed. A year ago, almost every major Australian destination was cutting forward rates. This year, almost every one is holding or raising. Country average +10.2% YoY across Q2.

Africa

Africa’s strong Q1 (Jan +5.8%, Feb +7.8%, Mar +5.8% YoY) hasn't carried into Q2. The region averages $150.83, essentially flat on Q2 2025 (+0.2% YoY) and 22.3% below Q2 2024. April actualized rates averaged $153.56 (-1.5% YoY), with May and June advertised at +0.1% and +2.1%, a sharp deceleration from Q1's pace but showing a gradual improvement within the quarter.

By segment:

• 5-star: $345.51 (vs. $347.09 in 2025, $346.21 in 2024). Flat across all three reference periods.

• 4-star: $146.18 (vs. $151.55 in 2025, $154.40 in 2024). Negative YoY across every Q2 month and still 5.3% below 2024.

• 3-star: $88.11 (vs. $83.05 in 2025, $97.24 in 2024). Up 6.1% YoY but still 9.4% below 2024, gain mostly reflects how far rates fell in 2025 rather than new demand in 2026.

Egypt and South Africa lead a flat region

Egypt carries Q1 momentum into Q2

• Cairo posted actualized rates of $209.55 in April (+23.9% YoY), and the forward picture is stronger, with advertised rates up +21.9% in May and +32.3% in June.

• Morocco’s Q1 gains were driven by the Africa Cup of Nations (AFCON). Egypt’s were driven by a strong European winter-sun season. Both of those seasonal peaks are now behind us, but Egypt’s demand is carrying into Q2. 

South Africa accelerates through the quarter 

• Cape Town had a strong April with actualized rates up +19.3% YoY, but the advertised rates for May and June point to gains closer to +39.1% and +34.9% YoY, despite this being the shoulder season. 

• Easter fell on the first weekend of April this year, and Cape Town hosted the Two Oceans Marathon, WTM Africa (a record 8,000 trade professionals) and ILTM Africa in the same month. Outside the city, Stellenbosch was also up 46.1% YoY in April. 

• Other major South African urban centers are also strengthening. Pretoria (+38.1% April), Johannesburg (+10.3%) and Durban (+12.0%) are all advertising stronger rates through the rest of the quarter, a rare pattern in the regional data. South Africa’s country average accelerates through Q2: +21.0% April, +23.0% May, +25.0% June, year-on-year.

Indian Ocean islands soften gradually 

• The Indian Ocean luxury islands are repricing at low single-digit declines through May–June: Mauritius $254.21 (-3.3%) and $226.42 (-2.3%); Seychelles $495.91 (-10.6%) and $449.19 (-9.8%). In East Africa, Mombasa is accelerating sharply, while Nairobi is essentially flat. Rwanda is down across Q2; Uganda softens through May.

Asia

Asia is stabilizing but has not yet turned a corner. The region averages $118.99 in Q2, flat on a year ago but still about 17.0% below Q2 2024.

The flat regional headline obscures an improving trajectory. Q1 2026 was Asia’s first quarter of consecutive positive monthly YoY readings since mid-2024 (Jan +2.4%, Feb +7.9%, Mar +4.1%).

The trailing twelve-month (TTM) deficit has narrowed in step, from 13.1% in April 2025 to -4.7% today, and is on track to close to flat once the deeply negative mid-2025 months roll out of the trailing window.

By segment:

• 5-star: $213.13 (vs. $211.02 in 2025, $216.65 in 2024). The only Asian tier close to where it was in 2024.

• 4-star: $101.27 (vs. $103.59 in 2025, $108.30 in 2024). Negative across every Q2 month, and still 6.5% below 2024.

• 3-star: $60.54 (vs. $57.54 in 2025, $65.64 in 2024). Up 5.2% YoY across Q2 but still 7.8% below 2024.

Vietnam surges while Japan corrects

Vietnam surges on record arrivals

• April actualized rates were sharply up at Da Nang (+104.1% YoY), Nha Trang (+75.0%), Phu Quoc (+70.4%) and Hanoi (+55.3%). Some of that lift is recovery from a soft 2025 base, but there is also underlying demand driving that growth. Phu Quoc is now +42.6% above 2024, Nha Trang +36.1%, Hanoi +28.8%. 

• The country is also the only one in Asia where the strength continues through the coming months: advertised May–June rates at Da Nang (+57–89% YoY), Nha Trang (+55–63%) and Phu Quoc (+48–53%) hold well above 2025.

• Vietnam recorded 6.76 million foreign arrivals in Q1 2026, a record and 12.4% above 2025, with China retaking its position as the largest inbound market following extended visa exemptions.

• While South Korea posted +16% YoY in April, Thailand, Maldives and other April positives flatten or reverse over May–June.

Japan normalises after a strong 2025 

• Tokyo (-14.0% in April), Kyoto (-19.1%) and Osaka (-37.8%) are all below where they were a year ago. Neither cherry-blossom season nor Golden Week were enough to pull April pricing above 2025 levels. 

• Advertised May–June rates ease the decline slightly for Tokyo and Kyoto, but not for Osaka, which deepens to -41.0% in May before holding at -40.8% in June.

• Osaka remains the weakest of the three, still unwinding from Expo 2025. The Expo ran from April through October 2025, inflating last year’s rates across the same months that Q2 now measures against.

Hong Kong holds above the regional trend

• Hong Kong hosted the Cathay/HSBC Hong Kong Sevens in April, drawing 113,395 spectators over three days at Kai Tak. The event lifted April rates to $217 (+10.6% YoY). May settled back to $188 (+4.5% YoY) – still positive while most other Asian gateways are flat or negative. June advertised drops further to $169.62. This reads as +15.5% YoY, but only because June 2025 was an unusually weak month, with average actualized rates at $147. In dollar terms, June is the softest month of Hong Kong’s Q2. 

• In China, Beijing is softening sharply between April and May, then holding at -10.1% through June. Shanghai is heading the other way: -14.3% YoY in April, improving to -6.0% YoY by June.

Bali's leisure flagships reprice lower 

• Bali's two premium leisure markets are pricing well below 2025. Southern Peninsula closed April at $162.35 and is advertising $165.06 for June (-23.5% and -24.7% YoY); Ubud holds in a $166.87–$168.45 band across the quarter (-11.0% to -14.4%). June is the deepest month for the Southern Peninsula, the opposite of what peak-demand seasonality would predict.

• Secondary destinations are more mixed across the quarter, with Lombok strongest in April (+25.3%) before turning negative in June, while Yogyakarta and Bandung move from April negatives into positive territory by June.

India stays positive as the mix shifts

• April actualized rates lifted year-on-year across the major cities. New Delhi was up +29.4% ($72.67 to $94.04), Udaipur +61.2% ($78.88 to $127.13), Mumbai +0.6% ($120.38 to $121.15), Goa +4.4% ($96.72 to $100.94). 

• The wedding season closes at the end of April, and Udaipur’s YoY lift narrows through the quarter, as the season ends. Advertised May rates are still up +42.3% YoY and June +37.1%. 

• The corporate-heavy cities are going in the opposite trajectory. Delhi, for example, accelerates: up +29.4% YoY in April, May advertised rates are up +47.0% and June is up +61.4%.

• Jaipur is also strengthening (April +8.2%, May +24.0%, June +33.5% YoY), while Mumbai climbs from +0.6% in April to +18.4% by June. Urban corporate demand appears to be filling the gap as the wedding season draws to a close.

Europe

Europe is still growing, but the pace is slowing. The region averaged $198.56 in Q2, up +1.4% on Q2 2025 and +13.5% on Q2 2024.

But the deceleration is the more important signal. Q1 2026 was extraordinary (Jan +16.8%, Feb +13.0%, Mar +7.9% YoY). Q2 moderates sharply: April actualized rates were up +5.4% on the same month last year, May advertised up +1.0%. 

But June advertised rates are down 1.5% on last year, on average. If June holds at the advertised rate, it would be Europe’s first negative monthly YoY reading in over a year.

While these advertised rates may firm as June approaches, the trajectory is clearly downward.

By segment:

• 5-star: $398.48 (vs. $375.10 in 2025, $348.10 in 2024). The only Q2 tier solidly positive across all three months (April +6.7%, May +6.5%, June +5.6%).

• 4-star: $191.70 (vs. $185.90 in 2025, $174.41 in 2024). Positive across every Q2 month, decelerating through the quarter.

• 3-star: $138.81 (vs. $134.26 in 2025, $128.05 in 2024). Tracks the 4-star pattern.

Leisure destinations hold while cities soften

Italian leisure leads European rate growth

• Sorrento-Amalfi average rates are advertised at $1,190 per night in June (+9.0% YoY), and the highest in absolute terms in the dataset. 

• However, Venice leads YoY growth in Europe where advertised rates are up +47.7% in May compared to May in 2025. Florence, Rome and Sardinia are all advertising May-June gains in the +9.7% to +18.4% range. 

• Italy’s country average is more modest at +2.3% to +4.0% across Q2, meaning the standout destinations are carrying the bulk of the region’s leisure-anchored lift.

UK regions surge in June; London stays flat 

• Regional cities are advertising significant rate increases for June without the gradual rise in May that typical summer demand would normally produce. London is stable across Q2, with April actualizing at $293 (barely changed from last year) and May/June advertised rates similarly flat (+3.9% and +0.6% YoY). 

• Outside the capital, rates remain flat across the regions in May before June jumps. For instance, Cardiff swings from -11.7% YoY in May to +43.0% in June, Glasgow moves from +3.9% to +31.2%, Brighton from +6.8% to +29.4%, and Edinburgh from +8.9% to +16.7%. 

• This one-month concentration of demand suggests it is driven by specific events, such as Metallica’s tour dates in Cardiff and Glasgow, rather than a broad summer market rise.

• Growth is concentrated in destinations where supply is limited and demand is leisure-driven. Mallorca is advertising +9.7% YoY for May, while Fuerteventura is up +12.1% and Rhodes +15.6%.

• Zermatt is advertising low single-digit gains. Iceland is advertising +5.0% in May and +9.5% in June. These are markets where hotel capacity is finite and summer demand is reliable.

Major cities' pricing confidence weakens

• Across Europe's 186 tracked destinations, 56.5% cut their Q2 advertised rates between the first week of February and the first week of March. A year ago, 89.2% were raising them.

• The shift is visible in the region's largest cities.

• Prices have come down in:

• • Paris by -0.8%

  • Vienna by -3.6%

  • Madrid by -2.8%

  • London by -2.8%

• Prices had risen in 2024:

• • Paris by +3.9%

  • Vienna by +3.6%%

  • Madrid by +4.2%

  • London by +1.7%

• After the cuts, Paris (+6.5% YoY) and London (+1.4%) remain above 2025 levels. Madrid sits marginally below (-0.4%). Vienna is the outlier at -12.6% YoY, the deepest April deficit of the four.

• Eurovision 2026 runs from May 12–16 at Wiener Stadthalle, yet Vienna's advertised May rates sit at -4.1% YoY. This is due to the fact that May 2025, was itself an outlier, with event-driven demand elevating rates on key dates in May. Despite this, Vienna’s advertised rates for the night of the Eurovision final have fallen from $536.49 at 90 days out to $338.46 at 21 days out. Hotels are cutting rates as the event gets closer.

• Amsterdam is the exception among major cities, advertising +20.3% in May and +20.1% in June – one of the strongest YoY performances of any European gateway this quarter.

Latin America

Latin America has softened on a trailing-twelve-month basis. The TTM at $231.97 sits at -2.6% YoY, a 6.6 percentage point swing from the +4.0% read at this point last year, when LATAM was the strongest positive among the seven regions. That distinction is gone.

But the Q2 forward picture across rated hotels reads more positive year-on-year than the trailing average suggests.

Every rated tier is positive across all three Q2 months, with mid-market showing the strongest growth. On a TTM basis, the 4-star tier is now outperforming 5-star (+6.8% vs +0.2% YoY), a gap that has been widening since mid-2025.

By segment:

• 5-star: $315.49 (vs. $287.28 in 2025, $331.52 in 2024). Up 9.8% YoY but decelerating sharply through the quarter: April +18.5%, May +7.0%, June +3.2%.

• 4-star: $180.03 (vs. $154.70 in 2025, $159.28 in 2024). Up 16.4% YoY and +13.0% in 2024. April +19.2%, May +14.9%, June +14.8%.

• 3-star: $99.13 (vs. $91.52 in 2025, $92.51 in 2024). Up 8.3% YoY and accelerating through the quarter (April +6.1%, May +8.2%, June +10.9%).

Mid-market leads the way and the World Cup gears up for June

Mexican beaches show pricing strength; World Cup reshapes June

• Mexican beach destinations posted modest April gains across the Pacific coast, with Los Cabos up +13.1% YoY and Puerto Vallarta +6.3%.

• On the Caribbean side the picture is mixed: Cancun was +5.1% in April, but further down the Yucatán coast the numbers turn. Riviera Maya opened at +10.5% YoY in April but has flattened in May (+0.7%) and advertised June rates have fallen to -8.3% YoY. Cozumel is negative throughout, at -8.3% in April and -17.0% by May-June.

• The World Cup dominates June in three Mexican host cities. Guadalajara is advertising +218.5% YoY for June, the largest single-advertised lift in the entire dataset. Mexico City (+112.0%) and Monterrey (+107.8%) follow. The April and May data in these same cities are modest by comparison, meaning the premium is concentrated in match-date windows.

Brazil runs the most consistent positive in LATAM

• The Northeast beach markets (Salvador, Recife, Maceio, Natal) are all running +14.0% to +29.0% YoY across Q2, moving together as a cluster, with the upper end reached in May. Sao Paulo (+12.7% April) and Rio de Janeiro (+10.6% April) follow the same direction. The country average sits at +20.0% across Q2, the most consistent country-level positive in LATAM.

Smaller Caribbean markets outperform the resort destinations 

• Saint Lucia posted +27.0% YoY in April and advertised rates are accelerating to +37.0% in June. Several smaller high-end markets posted strong April gains:

• • Cayman Islands (+14.0% April, though narrowing to flat by June)

  • Barbados (+12.0% April, accelerating to +17.4% in May and holding positive through June) 

  • Grenada (+18.1% April, though narrowing to flat by June) 

• The Cayman Islands is a documented case, with February Canadian arrivals surging by 47% – the highest monthly Canadian total on record. Whether the same dynamic is lifting the other small Caribbean markets is plausible but not yet confirmed by arrivals data.

• The larger resort markets are moving the other way: Jamaica from -3.4% YoY in April to -13.1% YoY advertised pricing in June, Punta Cana -5.8% to -9.8%, Nassau softening through Q2.

Colombia and Argentina strengthen in South America

• Cartagena and Bogota both posted +17.5% and +17.6% YoY, respectively, in April, with Santa Marta at +39.7% in April, though narrowing sharply to +5.5% by May–June. The country average runs at +16.0% to +20.0% across Q2.

• Argentina's country average is more modest at +1.0% in April, with Buenos Aires at +9.0%

• Ushuaia stands out: +8.1% in April, accelerating to +38.2% by June as the Patagonian winter season approaches.

• The outlier in the region is Cusco, down -14.9% to -19.5% across every month of Q2, the deepest sustained negative in our LATAM data.

Middle East

The US/Israel-Iran conflict that began in late February 2026 has suppressed Gulf demand sharply. 

The region averages $151.75 across April-June, 2.0% to 3.0% below both Q2 2025 and Q2 2024. April 2026 actualized at $143.60 (-11.7% YoY), the largest negative monthly result in the regional series.

May and June advertised rates turn modestly positive on a YoY basis (+2.4% and +3.5%), partly reflecting a softer 2025 summer base. On a two-year view, both months sit close to 2024 levels.

There is also a calendar effect in the mix. Eid al-Fitr fell on March 30, 2025, meaning post-Eid travel will spill into the first week of April. This year it fell on March 20, 2026, entirely inside Q1. So the two Aprils are not a clean comparison. Hajj 2026 is expected to fall between May 24, 2026 and May 29, 2026, concentrating Saudi pricing into late May rather than spreading it across the quarter.

By segment:

• 5-star: $224.10 (vs. $237.14 in 2025). Down 5.5% YoY. Most regional 5-star inventory sits in the Gulf capitals, which is where the deepest negatives are.

• 4-star: $126.88 (vs. $125.10 in 2025). Up 1.4% YoY. Spread across Israel, Turkey and Jordan.

• 3-star: $89.89 (vs. $88.76 in 2025). Up 1.3% YoY, though the TTM figure at +8.2% is the strongest of any tier in the region.

Conflict reshapes the Gulf; Israel and Turkey strengthen 

Gulf demand collapses after late February

• Dubai’s average actualized rate in April was $75.43 (-59.6% YoY), down from $186.49 a year earlier. The rate has barely moved since, remaining between $75 and $79 across all three months of Q2. The war has collapsed Dubai’s April premium, and May-June rates are currently advertised at prior-year seasonal summer levels rather than at extreme deficits. 

• Abu Dhabi fell dramatically in April, from $238.11 a year ago to $149.25 (-37.3%). By June, advertised rates of $145.52, are essentially level with last year’s $144.61. 

• Doha sits in between Dubai and Abu Dhabi: $125.34 in April versus $194.15 a year ago (-35.4%), narrowing to -18.0% in May and -11.3% in June but not yet closing the gap.

• Lighthouse occupancy data puts the rate picture in context. Through January and into late February 2026, Dubai ran at 80.0% to 99.0% daily occupancy, with weekend peaks regularly touching 95.0% to 99.0%. 

• From February 28, occupancy collapsed: 88.0% to 32.0% in eight days, falling below 20.0% on multiple nights in mid-March. By late April, weekends had recovered to 50.0% to 57.0% but weekdays remained in the high 30s to low 40s.

• Abu Dhabi and Doha followed the same direction but not to the same extent. Abu Dhabi fell from above 90.0% to around 38.0% to 40.0% by mid-March but never dropped below 35.0%. 

• By late April, weekdays were in the high 40s to high 50s and weekends were reaching 60.0% to 70.0%. Doha started falling earlier and more gradually, and as of April was sitting at 27.0% to 43.0% with no clear recovery pattern yet. Operators across all three cities are pricing cautiously rather than chasing rates back up.

Israel accelerates across Q2

• Jerusalem posted +41.4% YoY in April, with advertised rates for May and June higher still at +46.0% and +35.5%. Tel Aviv and Haifa are both positive through the quarter. 

• The country average builds through Q2: +19.0% YoY in April, +28.0% in May, +29.0% in June. Rates also sit +29.0% to +40.0% above 2024 across all three months, so the growth is evident on a two-year view.

Turkey builds through the quarter 

• Istanbul was flat YoY in April but advertised rates for May and June are up +7.6% to +9.4%. Antalya moves from -2.0% YoY in April to +10.9% in advertised June rates. 

• Bodrum is an interesting case. Its rates are still below last year, but operators raised their advertised rates between February and March more aggressively than any other destination in the region, repricing from a depressed February floor.

• Even after the lift, advertised rates remain well below 2025 across Q2, and Bodrum is the outlier inside an otherwise accelerating Turkish picture. Istanbul and Antalya have advertised rates running above 2025 across May and June.

Saudi hotel pricing reflects calendar shifts

• Makkah’s advertised May rates jump to +26.6% YoY around the Hajj window, then drop to -36.0% in June. Riyadh is the only Saudi destination showing genuine improvement, from -30.0% YoY in April to +2.0% in advertised June rates. Jeddah remains heavily negative throughout, down between -18.5% and -40.0% YoY across the quarter. 

• The country average moves from -29.0% in April to -17.0% in May to -11.0% in June, but most of that narrowing comes from the calendar shifts described above rather than a broad return of demand.

North America

North America averages $162.17 across April-June, down 9.6% YoY, though every rated hotel segment is positive. 

On a TTM basis, the region sits at +2.7%, a significantly different picture than the Q2 YoY, reflecting how recently the demand factors weighing on Q2 took hold.

The regional average is dragged down by unrated and budget inventory coming off an unusually strong 2025. For rated hotels, the quarter splits in two: the FIFA World Cup is pushing advertised June rates sharply higher across 16 host cities, while non-host markets are flat to modestly positive.

April and May are weaker for three reasons. Canadian travelers to the US have now declined for 13 consecutive months (January arrivals -22.0% YoY). Overseas arrivals are falling (-4.2% YoY in January, with European forward bookings for July tracking -15.3% below last year’s pace). And domestic affluent leisure spending is softening, with consumer sentiment at historic lows, though this has not yet shown up sharply in destination pricing.

June is a different story. The FIFA World Cup begins on June 11, 2026 across 16 host cities in the US, Mexico and Canada. The host cities account for most of the regional gains in rated hotel segments. Outside the host cities, June pricing remains on the same trajectory as April and May.

By segment:

• 5-star: $494.11 vs. $452.38 in 2025, $449.89 in 2024). Up 9.2% YoY and +9.8% vs 2024.

• 4-star: $226.58 (vs. $214.82 in 2025, $216.71 in 2024). Up 5.5% YoY and +4.6% vs 2024.

• 3-star: $151.52 (vs. $141.22 in 2025, $145.50 in 2024). Up 7.3% YoY and +4.1% vs 2024.

The World Cup loads into June while inbound demand softens

The World Cup dominates June pricing in North America. 

• June advertised rates in US host cities range from +16.7% YoY in New York to +99.5% in Houston: 

• • Houston $220.15 (+99.5%)

  • Dallas $273.90 (+90.6%)

  • Kansas City $282.28 (+88.0%)

  • Miami $295.50 (+80.5%). 

• Vancouver leads the Canadian hosts at $706.05 (+73.3%). April actualized monthly averages in the same cities run from Houston $116.59 (-3.4%) and Dallas $138.82 (-4.4%) to Vancouver $283.08 (+9.9%), Kansas City $152.29 (+12.6%) and Miami $247.72 (+16.5%).

• Markets near host cities are running similar magnitudes:

• • Richmond BC (+90.7% June, Vancouver-area)

  • Fort Worth (+94.4%, Dallas-area)

  • Katy TX (+74.0%, Houston-area)

  • Mississauga (+67.2%, Toronto-area)

  • Overland Park KS (+49.9%, Kansas City-area). 

• Whether travelers are being displaced from supply-constrained host cities or choosing cheaper alternatives by preference, the advertised price premium is rippling outward across every major host metro.

• New York (+16.7%), Los Angeles (+34.8%) and Boston (+22.7%) show a more muted effect, absorbed by deeper inventory.

Canadian destinations run positive through Q2 

• Canadian destinations are broadly positive in April and May, with advertised May rates stronger than April. Banff posted +12.9% YoY in April and is advertising +24.1% in May. Montreal went from +3.0% to +28.0%. Halifax from +9.5% to +20.9%. Ottawa, Quebec City and Whistler follow the same pattern. 

• June is more mixed. Montreal reverses to -9.5% and Calgary to -26.9% (though Calgary's June is measured against an elevated 2025 base; on a two-year view it sits +17.9% above 2024). 

• The regional aggregate weakness remains a predominantly US-destination story, but June softness is not confined to the US alone.

Hawaii and Las Vegas buck the trend

• Outside the host cities, the picture is split rather than uniformly soft. Chicago accelerates from +3.7% in April to +13.3% in June without hosting a match. Nashville follows a similar arc (+1.5% to +13.7%), likely lifted by CMA Fest in mid-June.

• New Orleans runs positive throughout (+11.8% April, +8.1% June).

• Maui averages -11.2% / -12.7% / -7.5% YoY across April, May and June. Honolulu follows at -12.7% / -15.6% / -8.8%. Las Vegas is negative but volatile rather than consistently weak: down -23.6% YoY in April, -3.0% in May and -13.9% in June.

• OAG capacity data attributes much of that weakness to lost Canadian routings – Las Vegas down 82,000 Canadian-bound seats and Orlando down 79,000 in Q1. Beyond these, the broader US picture outside the World Cup host cities is genuinely mixed rather than uniformly soft.

• The inbound-exposed gateway markets are also weaker. New York actualized at -10.6% in April ($383.80 to $343.26), the sharpest decline in a major US city and the clearest pricing evidence of the Canadian and European arrival drops.

Oceania

Australia is the standout story in Oceania this quarter. After a year of operators cutting forward rates, almost every major Australian destination is now holding or raising them. 

The region averages $178.34 across April-June, down 5.5% YoY, though every rated segment is positive: 5-star +9.9%, 4-star +9.0%, 3-star +6.3%.

By segment:

• 5-star: $275.53 (vs. $250.70 in 2025, $262.33 in 2024). Up +14.5% YoY in April, +11.1% in May, +5.1% in June. Still growing but the gap is narrowing as 2025 rates were stronger later in the quarter

• 4-star: $171.06 (vs. $157.01 in 2025, $167.69 in 2024). Positive across every Q2 month and above 2024 levels

• 3-star: $107.50 (vs. $101.14 in 2025, $101.69 in 2024). Up 6.3% YoY and 5.7% above 2024

Australia flips positive, New Zealand splits

Australia reverses last year's cuts

• The gains go beyond April’s holiday window. Port Douglas posted +35.7% YoY in April, with advertised May-June rates still up +18.6% to +21.3%. Sunshine Coast, Townsville and Hobart follow the same pattern, with advertised rates through May and June holding above April rather than dropping back.

• Australian cities are all up in April:

• • Sydney (+9.4% YoY)

  • Brisbane (+11.3%)

  • Melbourne (+5.2%)

  • Perth (+7.9%)

  • Darwin (+23.3%). 

• A year ago, a majority of Australian destinations were cutting forward rates – seven of eleven tracked markets, including Melbourne, Adelaide, and Cairns. This year, eight of the eleven are holding or raising, with both Adelaide advertising +8.0% YoY in May and Cairns +12.0% in June. Australia’s country average sits at +10.2% YoY across Q2.

New Zealand splits between resort towns and cities. 

• Queenstown’s actualized rate in April was up 22.3% on the same month last year, driven by autumn shoulder pricing and a surge in Chinese visitors. China arrivals to New Zealand reached 61,100 in February 2026, up 214.0% YoY and the highest monthly figure since February 2018, after a January 2026 rule change made it easier for Chinese passport holders to travel to New Zealand from Australia. Christchurch is also strong at +23.8% in April. 

• Auckland, New Zealand's largest gateway, is essentially flat at -0.7% YoY in April. The country average of +5.0% in April, easing to +2.0% by June, is driven almost entirely by the resort and secondary cities rather than the primary market.

• French Polynesia remains the most expensive market in the region, with an actualized April rate of $690 and advertised June rates reaching $876. Fiji’s actualized April rate was up 17.6% YoY, with the lift gradually easing through May and June.

What does this data mean for hotel revenue strategy?

Three shifts appeared across markets this quarter.

First, pricing power is fragmenting. It's less about broad market momentum and more about how demand concentrates into specific dates, segments and booking windows.

Peak periods are carrying a disproportionate share of rate growth, while operators are pricing the surrounding periods more conservatively. This reduces the effectiveness of uniform pricing approaches and increases the importance of granular demand monitoring.

Secondly, historical reference points are becoming less reliable. Prior-year comparisons are increasingly shaped by one-off events, calendar shifts and disruption, making them a weaker guide for current pricing decisions.In their place, short-term demand signals are playing a larger role. How bookings are building, at what pace and for which segments matters more than the comparison against last year.

Thirdly, demand itself is less stable. In several markets, incremental volume is being influenced by external factors such as redirected travel flows or event-driven spikes. This demand can support rate growth in the short term but is less predictable in how it transforms into bookings and how long it persists, increasing the risk of overestimating underlying strength.

Taken together, the quarter points to a more fragmented and timing-dependent pricing environment, where outcomes depend less on where a market is and more on how demand is evolving within it.

For hoteliers, the objective hasn't changed, but the data has. Understanding what's driving forward bookings, and how quickly that picture is shifting, is becoming the foundation of confident pricing.

As these patterns continue to evolve, maintaining a clear view of forward demand and competitive positioning will be key to navigating the periods ahead.

Lighthouse Market Alerts gives you a weekly read on demand, pricing and event signals in your market, with free alerts tailored to your property – whether you operate independently or across a group – so you never miss a market beat.

FAQs

Are hotel prices rising or falling globally in 2026?

The picture is split. Half of the destinations Lighthouse tracks raised their Q2 2026 advertised rates between February and March; the rest cut them. A year ago, around 63% of destinations were raising rates in the same window. 

Europe is still growing but decelerating sharply, with June advertised rates down 1.5% YoY. North America and the Middle East are weaker than 2025. Asia is stabilising. Latin America and Oceania are holding rate growth in their rated tiers. Pricing is fragmenting at the destination level rather than moving in regional blocks.

How is the FIFA World Cup 2026 affecting hotel prices?

The tournament begins on June 11, 2026 across 16 host cities in the US, Mexico and Canada, and it is reshaping June pricing across the region. Guadalajara is advertising rates +218.5% YoY for June, Houston +99.5%, Vancouver +73.3%, Mexico City +112.0% and Miami +80.5%.

The lift is concentrated into match-date windows, so April and May rates in the same cities remain modest. Non-host cities show no equivalent gains. Lighthouse is tracking hotel prices, with weekly updates for every World Cup host city.

Why have hotel prices in Dubai and the Gulf dropped in 2026?

The US/Israel-Iran conflict that escalated in late February 2026 collapsed Gulf demand. Dubai's April 2026 actualised rate fell to $75.43, down 59.6% from $186.49 a year earlier. Abu Dhabi dropped 37.3% YoY in April, Doha 35.4%.

Daily occupancy in Dubai fell from 80% - 99% in late February, to below 20% on multiple nights in mid-March. May and June advertised rates are stabilising at last year's seasonal summer levels rather than climbing back, suggesting operators are pricing cautiously rather than betting on a quick recovery.

Are European hotel prices still rising in 2026?

Yes, but the pace is slowing sharply. Europe's Q2 2026 average is $198.56, up 1.4% on Q2 2025 and 13.5% on Q2 2024. After a Q1 that grew between 7.9% and 16.8% YoY, Q2 reads +5.4% in April, +1.0% in May, and -1.5% in June.

If June advertised rates hold, it would be Europe's first negative monthly YoY reading in over a year. Major cities including Paris, Vienna, Madrid and London all saw operators cut rates between February and March; in the same window a year ago, all four were raising them.

Which hotel markets are growing fastest in 2026?

Vietnam is the global standout. Da Nang's April 2026 actualised rate was up 104.1% YoY, Nha Trang 75.0%, Phu Quoc 70.4% and Hanoi 55.3%. The country recorded a record 6.76 million foreign arrivals in Q1 2026, 12.4% above 2025. South Africa is also accelerating, with Cape Town's advertised May-June rates running +34.9% to +39.1% YoY and the country average building from +21.0% in April to +25.0% YoY in June.

What's the difference between actualized and advertised hotel rates?

The actualized price reflects the average of the lowest bookable rates for a standard hotel room across all hotels in Lighthouse's data set, as of 10 days before each stay date.

The 10-day lead time reduces the influence of last-minute fluctuations and ensures a larger sample size, since hotels may sell out closer to the stay date. Advertised rates use the same methodology but for stays still to come. In this report, Q1 2026 and April 2026 are actualized; May and June are advertised.