Market Performance Overview: Occupancy, ADR, and RevPAR The U.S. hospitality sector enters 2026 in the middle of a quiet but consequential reversal. In 2025 the industry recorded something it had never before posted outside of a recession: a full-year decline in revenue per available room. RevPAR slipped roughly 0.3% as occupancy gave back about 1.2%, and the air went out of a recovery that many operators had assumed would carry through the decade (1)(3). The cause was not a

1. Executive Summary Labor is no longer the residual line on a special-purpose pro forma. It is the lever. Across the five asset classes that dominate SBA 7(a), 504, and USDA B&I special-purpose paper, namely limited-service hospitality, express car washes, self-storage, laundromats, and unattended fueling, the operators with the lowest full-time-equivalent count per revenue dollar are not just generating higher EBITDA margins. They are clearing debt-service coverage threshol

How institutional demand analysis is constructed for traffic-driven retail under SBA SOP 50 10 8 and USDA 7 CFR 5001, illustrated through gas stations, express car washes, and truck stops. The number that everything else hinges on In every feasibility study, one number propagates through the entire model. Capture rate. Whether the project services its debt depends on whether the analyst can defend that single figure to an SBA underwriter or USDA reviewer. Demand analysis is t

I. Industry Overview: A 5.8 Million Room Market at an Inflection Point The U.S. hotel industry comprises approximately 5.79 million rooms across 65,400 properties , generating trailing twelve-month occupancy of 62.4%, an average daily rate (ADR) of $161, and revenue per available room (RevPAR) of $100 as of early 2026. (1) These headline figures, however, obscure the single most consequential dynamic reshaping the sector: a structural bifurcation between chain scales that h