Hospitality Trends Guiding Our Path Forward | March 2026
The commercial real estate landscape continues to evolve in measured but meaningful ways. Across the country, we are seeing signs of stability in key sectors, including hospitality, where market conditions are gradually leveling after several years of uneven demand and elevated capital costs. National forecasts show modest, yet consistent progression driven by clearer macroeconomic conditions and a renewed consumer focus. These shifts are consistent with certain elements of our long-term investment philosophy and are among the factors we consider when evaluating strategies that integrate hospitality within broader, community-driven environments. However, there can be no assurance that current trends will continue or that such strategies will achieve their intended results.
Hospitality Market Overview: U.S. & Orange County
Reports from late 2025 and forecasts for 2026 shift from a decline toward slow but steady improvement across the U.S. hospitality sector. Cushman & Wakefield reports that national Revenue Per Available Room (RevPAR) ended in 2025 with a small decline of 0.3% while Average Daily Rate (ADR) increased 0.9% and occupancy softened modestly.[1] RevPAR is expected to rise by approximately 0.9%, supported primarily by ADR growth of just over 1% while occupancy holds near 62.2%.[2] Supply growth is projected to outpace demand growth slightly, creating ongoing margin pressure for operators. Nonetheless, a more predictable travel environment is emerging with group bookings and higher-income leisure segments showing resilience.
Within these national trends, it is notable that several key coastal and high-demand markets are beginning to outperform the broader averages. Orange County, for example, posted 72.1% occupancy in Q4 2025 along with a year-over-year occupancy increase of 2.2%, ADR growth of 3.7%, and a RevPAR gain of 6.0%, outpacing many major metros in both rate strength and revenue growth. Orange County’s results underscore how well diversified, experience-driven markets are absorbing shifting demand patterns and benefiting from sustained leisure interest and event activity.*
Our Strategy**
At Integris Real Estate Investments’ parent company, Shopoff Realty Investments, we have long believed that hospitality plays a critical role in the success of thoughtfully assembled mixed-use environments. As demand patterns shift and travelers gravitate toward amenity-rich destinations, our Orange County projects are being planned with the objective of benefiting from this convergence of uses, although market, financing, entitlement, and operational factors may materially affect outcomes. The national trends highlighted above inform our view that hospitality may contribute to long-term value when integrated with other asset types such as residential, retail, and open spaces.
Properties such as Magnolia Coast and Bolsa Pacific illustrate our strategic approach. With plans for 215 keys at Magnolia Coast and 120+ keys at Bolsa Pacific, these communities have been designed to balance lodging with lifestyle amenities, retail activation, and pedestrian connectivity. The addition of hospitality within these plans is intended to enhance the guest experience and overall project identity. We are currently planning these assets with the objective of responding to changing traveler expectations and evolving market conditions.
We continue to evaluate opportunities to incorporate hospitality within mixed-use platforms where it may strengthen the community fabric and contribute to local economies. The measured but steady market recovery further informs our ongoing evaluation of this strategic direction.
Closing Outlook
The year ahead will require strategic clarity across the hospitality sector. Although growth is expected to be moderate, the return of more stable booking patterns, healthier consumer sentiment, and renewed experiential demand create certain indicators that market participants are monitoring closely. We remain confident in our ability to navigate the current environment and to deliver value through mixed-use projects that anticipate long-term demographic and behavioral trends.
Disclosures
[1] Cushman and Wakefield. MarketBeat Hospitality Q4 2025: United States. Cushman & Wakefield, 2026. [2] PwC US. Hospitality Directions US: December 2025 Outlook. PwC, 2025. *These market statistics are provided for general informational purposes only and do not represent the performance of any specific project or investment. **There is no assurance that this strategy will succeed to meet its investment objectives. Development timelines, entitlements, construction schedules, and financing conditions may impact the scope and timing of any such plans. This communication is provided for informational and educational purposes only. The views and opinions expressed herein are those of the author as of the date of publication and are subject to change without notice. Past performance is not indicative of future results. This is not an offering to buy or sell any securities. Such an offer may only be made through the offering’s memorandum to accredited investors. Any investment in Shopoff Realty Investments (“SRI”) programs involves substantial risks and is suitable only for investors who have no need for liquidity and who can bear the loss of their entire investment. The performance of former assets is not indicative of the future results of other assets. Securities offered through Shopoff Securities, Inc. (“SSI”) member FINRA/SIPC.
