U.S. Hotels Face Lower-than-Expected Demand Ahead of World Cup

The anticipated economic boost from the World Cup has not yet materialized for U.S. hotels, as room bookings remain below expectations in the 11 host cities, according to a recent survey by the American Hotel & Lodging Association.

In cities such as Kansas City, Boston, and Philadelphia, many hotel operators reported bookings lagging behind typical seasonal demand, while others, including New York City and Los Angeles, showed flat demand compared to previous years.

Factors Affecting Hotel Bookings

The American Hotel & Lodging Association attributed the disappointing demand to several factors, including travel concerns among international fans, visa wait times, and the overall cost of attending the tournament, which includes high ticket prices and transportation expenses.

Michael Black, general manager at the Cloud One hotel in Manhattan, noted, “I think everyone had hoped the games would lead an influx of bookings, but with all going on in the world and the USA’s involvement, events are playing out differently for everyone.”

Impact on Co-hosting Mexico

Concerns about booking demand extend to Mexico, which is co-hosting the World Cup with the U.S. and Canada. Hotels in Mexico City, set to host the tournament’s opening match, are currently reporting occupancy rates between 30% and 36%, as stated by the Asociación de Hoteles de Ciudad de México.

High Hotel Prices and Consumer Behavior

In anticipation of increased demand, many hotels raised their prices significantly following the tournament’s schedule announcement. For instance, a hotel near MetLife Stadium that typically charges around $200 per night has increased its rates to $800 during World Cup matches, with prices exceeding $1,300 for the final.

Ronan Evain, executive director of Football Supporters Europe, remarked, “Fans that are used to traveling for tournaments know that this price will always go down. There are many examples of hotel owners regretting that they priced too high and then panicking at the last minute and reducing prices.”

Some fans have opted for cheaper accommodations further from stadiums or chosen platforms like Airbnb, which has reported an increase in short-term rental bookings in metropolitan areas such as Kansas City and Seattle compared to the previous year.

General Expectations for the Tournament

FIFA reported that over 5 million tickets have been sold for the World Cup, with more than 6 million tickets available for all 104 matches. While many attendees will require hotel accommodations, large global events can deter other visitors, according to Andrew Zimbalist, a sports economics expert.

Zimbalist explained, “The general problem is that soccer tourists – and expected congestion, high prices and security concerns – push away normal business travel and tourism.”

Mixed Outlook for U.S. Host Cities

Vijay Dandapani, president of the Hotel Association of New York City, noted that while there is a modest increase in summer bookings-around 10% compared to the previous year-this is still far from the substantial gains expected by FIFA and tournament promoters.

In Toronto, which will host six matches, demand for hotel rooms has risen approximately 28% compared to June 2025, as reported by Sara Anghel, president of the Greater Toronto Hotel Association.

In Kansas City, 90% of hotel operators indicated that bookings are below expectations. However, tourism officials remain hopeful for a surge in visitors. Derik Detter, market research director at Visit KC, stated, “While hotel occupancy in Kansas City has not followed the trajectory originally predicted by FIFA, there are positive indicators for Kansas City on the horizon.”

Optimistic Perspectives from Industry Leaders

Jon Bortz, CEO of Pebblebrook Hotel Trust, expressed a positive outlook, stating that overall occupancy rates at host city properties have increased compared to last year. He acknowledged, however, that cities like Boston with more popular matchups are outperforming those like San Francisco, which hosts less sought-after games.

Bortz concluded, “We haven’t seen anything that would cause us to think it’s going to be less than what we were expecting. Maybe other people had much grander expectations.”

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