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World Cup hotel boom may ‘fall short of expectations’, US industry association warns

NRG Stadium in Houston will host seven 2026 FIFA World Cup matches
NRG Stadium in Houston will host seven 2026 FIFA World Cup matches Copyright  AP Photo/Jon Shapley
Copyright AP Photo/Jon Shapley
By Michael Starling
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A new report by the American Hotel & Lodging Association says anticipated demand ‘has not translated into strong hotel bookings’ and that domestic travellers are ‘outpacing’ international visitors.

With less than 40 days to go until kick-off at the 2026 FIFA World Cup in North America, the build-up is being driven as much by questions over the event's potential tourism impact as by the nations and players who will take centre stage.

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Set to be the biggest men’s World Cup in history, with a record 48 teams and 104 matches, this summer’s football extravaganza was billed as a major economic windfall for the host nations.

However, new data released by the American Hotel & Lodging Association (AHLA) suggests the outlook in the United States may be more complex than expected.

In its latest FIFA World Cup 2026 Hotel Outlook, the group warns that anticipated demand “has not translated into strong hotel bookings” and that domestic travellers are “outpacing” international visitors. FIFA room block cancellations, international travel barriers, and rising costs were identified by the AHLA as “key drivers of softened hotel demand”.

According to the report, based on surveys of hoteliers across 11 host cities, 80% of respondents say bookings are tracking below initial projections. While domestic travellers are still filling rooms at typical summer levels, the anticipated surge of international visitors has yet to materialise at scale.

That trend aligns with wider travel data reported earlier this month, which showed global interest in the tournament rising, but unevenly translating into confirmed trips. Analysts have pointed to a growing gap between search demand and actual arrivals, with structural barriers limiting conversion.

At the centre of the issue are visa constraints and geopolitical concerns. Between 65% and 70% of hoteliers surveyed by AHLA identified these factors as the primary impact on international demand. For a tournament that relies heavily on cross-border travel, particularly from Europe and Latin America, this presents a significant challenge.

“Hotels across host markets have spent years preparing for the World Cup, and while there is real excitement, the data points to a more nuanced outlook,” said Rosanna Maietta, President and CEO of AHLA.

Another key factor behind the softer outlook is what the report describes as an “artificial early demand signal” created by FIFA room block allocations. Hotels had initially reserved large volumes of inventory for official tournament use, inflating early expectations. However, roughly half of respondents now report significant room releases back into the market, forcing a recalibration of demand forecasts.

The impact is being felt unevenly across host cities.

In Kansas City, 85% to 90% of surveyed hotels report booking levels below expectations, with demand trailing even a standard summer without major events. Similarly weak signals are emerging in Boston, Philadelphia, San Francisco and Seattle, where many operators describe the World Cup as effectively a “non-event” so far.

In contrast, a smaller group of destinations are seeing tangible gains. Miami and Atlanta are outperforming expectations, buoyed by strong leisure appeal, better air connectivity and confirmed team base camps. These markets, AHLA notes, represent just 25% to 30% of respondents overall.

Major gateway cities such as New York City and Los Angeles sit somewhere in the middle. While bookings are softer than expected, they remain broadly in line with typical summer demand, suggesting the tournament is not yet delivering significant incremental uplift.

Meanwhile, Dallas and Houston report a similar pattern, with around 70% of hotels tracking below World Cup projections despite maintaining steady baseline occupancy.

Maietta believes there is still “meaningful opportunity ahead”, but to fully realise that potential, the US and FIFA must ensure a “welcoming and seamless experience for international travellers”.

She added: “That means avoiding unnecessary cost increases on visas and transportation to and from the games, and discouraging local jurisdictions from adding last-minute tax hikes that hurt the games and consumers.”

While the tourism picture is improving, benefits look uneven across North America. Analysis from Data Appeal and Mabrian, with PredictHQ, shows demand rising at different speeds, clustering in cities like Mexico City, Vancouver and Boston, with air connectivity key to conversions.

Spending may reach $4.3 billion, largely in hospitality, but Oxford Economics says wider gains will be “marginal and short-lived”. Economist Barbara Denham notes much demand will displace existing travel, with smaller cities gaining more than established hubs.

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