As North America prepares to host the first 48-team FIFA World Cup in 2026, the U.S. hospitality sector faces significant challenges, according to an analysis by OysterLink. With hotel rates in major U.S. cities soaring, the prospect of slower international arrivals and the impact of new visa restrictions are setting the stage for a potentially complex situation for U.S. hotels. These factors may limit the economic benefits of hosting such a prestigious global event.

The analysis reveals warning signs for the U.S. hospitality industry as the World Cup draws near. Despite global interest in the tournament, hotel bookings in the U.S. remain sluggish, and many international visitors are facing difficulties due to visa restrictions. This trend could lead to missed opportunities for U.S. hotels to capitalize on the expected influx of World Cup fans.

Slower Inbound Travel to the US

Despite the excitement surrounding the World Cup, international travel to the U.S. is slowing. Data from the U.S. Travel Association projects a 6.3% decline in international arrivals for 2025, with spending also expected to dip to around $173 billion. This downturn comes at a crucial time, as the World Cup is set to attract millions of global fans. The introduction of a $250 “visa integrity fee” in October 2025, applied to travelers from non-Visa Waiver countries, could further deter attendance, adding a layer of complexity for potential visitors from regions such as Brazil, India, and China.

In addition to visa barriers, the strong U.S. dollar and high airfare may make the U.S. less attractive to long-haul travellers, leading many fans to explore alternative host countries like Canada and Mexico. These countries are seeing stronger early demand, with hotel rates in cities such as Vancouver and Mexico City already surging ahead of the U.S.

Surging Hotel Rates, But Low Occupancy

The U.S. hotel market in World Cup host cities has seen a significant increase in room rates, with some cities, like New York, reporting an average nightly rate of $583. This represents a 55% increase in hotel rates year-over-year. However, the data shows that occupancy rates for World Cup dates in many U.S. host cities are still low, hovering in the single digits. This indicates that while prices are rising, travellers are waiting for more details on match schedules and ticket availability before making bookings.

In contrast, Canadian and Mexican host cities are experiencing a much stronger demand curve, with Canadian cities showing +92% growth in average daily rates (ADR) and Mexico’s hotels reporting an impressive +114% ADR growth. This demonstrates that, despite the high cost of travel, fans are booking their stays in these neighbouring countries earlier than those in the U.S.

The Booking Curve and Potential for Growth

As of late 2025, U.S. host cities have reported +14% year-over-year hotel revenue growth. However, when the World Cup dates are excluded from this data, the growth figure drops to +6%, barely above the national average of +3%. This indicates that while the overall hotel market in the U.S. has been performing well, World Cup-specific bookings have yet to take off.

Industry analysts expect a surge in bookings once the ticket draw takes place from October 27–31 and the official match schedule is released on December 5, 2025. These events will provide fans with the clarity they need to secure accommodations, and hotels will likely see an uptick in occupancy as fans finalize their travel plans.

Challenges and Opportunities for US Hotels

The U.S. hospitality industry faces several hurdles in the lead-up to World Cup 2026. As visa issues, high travel costs, and competing destinations create challenges for American hotels, analysts recommend that U.S. hotels adopt dynamic pricing strategies to balance immediate revenue opportunities with long-term occupancy goals. Flexible stay policies and targeted marketing efforts aimed at visitors from Canada, Mexico, and the U.K., the U.S.’s top inbound markets, could help boost demand.

While U.S. hotels may face a slower start, the World Cup’s scale and the projected 5 million visitors across North America still provide substantial opportunities for growth. Once logistical details settle and fans begin securing tickets, U.S. hotels are likely to see a significant rise in bookings, potentially making this one of their strongest years for revenue in recent history.

US Hotels Must Stay Flexible for World Cup Success

The World Cup 2026 offers tremendous potential for U.S. hotels, but the challenges posed by visa restrictions, high travel costs, and slower bookings could prevent the U.S. from fully capitalizing on the event. Hotels must remain flexible with their pricing, offer adaptable stay policies, and strategically target key inbound markets to fill rooms. If these hurdles can be overcome, the U.S. could still see a remarkable surge in demand for accommodations as the tournament draws nearer.

With careful planning and responsiveness to changing conditions, U.S. hotels can turn the World Cup into a lucrative opportunity, ensuring that the global excitement around the tournament translates into significant economic benefits for the country’s hospitality sector.

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