Two-Speed Hotel America: What to Watch in Q3 Hotel Earnings

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Hotel earnings season is here. Last quarter, the upscale brands grew about four times as fast as the economy brands. Q3 tells us whether that gap is growing.

Most hotel owners skip earnings season. They figure it is a show for Wall Street. That is a mistake, because for the next two weeks the biggest brands in the business are going to tell you, in public and in numbers, what kind of hotel is worth more right now.

Wyndham reports Wednesday, Oct. 21, after the market closes. IHG follows early Thursday, Oct. 22. Hilton reports Tuesday, Oct. 27. Hyatt goes Thursday, Oct. 29. Marriott and Choice both report Monday, Nov. 2.

The Scoreboard

Here is the scoreboard they are playing against. In the second quarter, RevPAR (revenue per available room) for U.S. hotels looked very different depending on whose flag was on the building:

• Hilton, U.S.: up 5.4%
• Marriott, U.S. and Canada: up 5.0%
• Wyndham, U.S.: up 2%
• Choice, U.S.: up 1.3%

Those are each company’s own Q2 figures. Put simply: the upscale-heavy brands grew about 5%, and the economy and midscale brands grew about 1% to 2%. That is a gap of roughly four points, in the same country, in the same quarter.

Why the Gap Matters to You

If you own an economy or midscale hotel, that gap does not stay on an earnings call. It shows up in three places you care about.

Your value. A buyer underwriting your hotel looks at where revenue is heading. If the brands in your segment are reporting flat RevPAR while the upscale brands post 5%, the buyer prices in flat growth.

Your refinance. Lenders read the same releases. Flat RevPAR plus higher interest rates means a smaller loan (see The Maturity Date Is the Default).

Your negotiation with the brand. This is the good news. Marriott said conversions were 40% of its openings in the first half of the year. IHG said conversions were 43% of its openings and 49% of its signings. Choice’s U.S. conversion pipeline was up 24%. The brands are growing by signing hotels that already exist. That means hotels like yours. When the brands need you that badly, your franchise terms are negotiable.

What to Listen For

1. Is the gap widening or closing? Compare each company’s Q3 U.S. RevPAR to its Q2 number above.
2. Did anyone cut its 2026 outlook? In the summer, Hilton and Marriott guided to 3.0% to 3.5% RevPAR growth for the year, Hyatt to 3.5% to 4.5%, and Choice to 0% to 1.25% in the U.S.
3. How many new hotels are conversions? If the share keeps rising, owners have more leverage.

The Bottom Line

One caution: these numbers measure brands, not your hotel. A well-run economy hotel in a growing Texas market can beat a tired upscale one any day. But brands set the story buyers and lenders tell themselves, and right now the story is two speeds.

We will post the full six-brand scorecard after Marriott and Choice report on Nov. 2.

Want to see what each of these brands charges you? We compared franchise fees for 164 brands: the franchise fee comparison.

Sources: Q2 2026 earnings releases from Hilton (July 28), Marriott (Aug. 3), Choice (Aug. 5), Wyndham (July 22) and Hyatt; IHG half-year results via Hotel Dive (Aug. 11, 2026); company earnings date announcements (Sept. to Oct. 2026). Cover image: illustration.