The category that was considered one of hospitality’s most predictable asset classes behaves a little differently in a post-pandemic world. You can’t blame it. Work culture and travel patterns have changed, and the powers of technology have somewhat stifled business travel. Weekday hotel occupancy – traditionally driven by this type of travel – is still about 4 percent below pre-pandemic levels, according to CoStar.
At the same time, the overall hotel recovery has leaned heavily on pricing power rather than demand growth. CoStar further notes that U.S. hotel occupancy averaged roughly 62 percent in 2025, which is also below pre-pandemic levels, while average daily rate reached record highs.
This doesn’t mean airport hotels aren’t a good investment nowadays. It simply means investors and owners can no longer rely on the steady demand rhythms that once made the segment feel like an almost autopilot investment.
Cleared for takeoff?
Travel behavior may have changed, but airport hotels are still benefiting from the broader rebound in air travel – and investors are taking notice.
“Investor interest in airport hotels has rebounded significantly following the pandemic and, in several cases, is exceeding pre‑pandemic levels,” says Matt Wehling, senior vice president of development for the U.S. & and Canada at Hilton. “Last year alone, Hilton signed nearly 50 airport hotels globally, which is on par with pre-pandemic levels.”
Wehling remains bullish on this category for a few reasons.
“While business travel patterns have evolved over the years, airport hotels have always been a consistent need,” he continues. “Airport hotels appeal to a wide variety of traveler types, from business and leisure travelers to airline crew, corporate and social events and more.”
That diversity of demand has helped airport hotels recover even as corporate travel rebuilds at a gradual pace.
“We expect corporate demand to increase slowly and that should help airport hotels going forward,” says Jan Freitag, national director for hospitality market analytics at CoStar.
A recent poll from the Global Business Travel Association notes that 84 percent of corporate travel buyers expect their organizations’ business travel spending in 2026 to increase or remain flat compared with 2025.
Airport hotels also benefit from the constant stream of travelers moving through major gateways and hub airports. Wehling notes there are about 100 airports with regularly scheduled international passenger flights across the U.S. and Canada. More than half of these feature Hilton‑branded hotels, which means there’s some runway left.
“That’s already a strong existing footprint but it also means there is room to grow,” he adds.
Turbulence ahead?
Regularly scheduled flights are great, but Freitag sees a potential pain point on that horizon.
“Airport hotels always had the weather impact, so when the weather hits, occupancy increases,” he explains. “These days, airlines cancel more trips preemptively, which could impact demand going forward.”
The unpredictable nature of weather and air travel point to another issue, argues Manjot Singh Bains, COO of hospitality management and investment firm Mehr Consultancy.
“Airports are more volatile now,” he says. “You get demand but the rate for it varies heavily.”
CoStar’s data notes airport hotel occupancy reached 73.8 percent in 2019, compared with 68.4 percent in 2025. Average daily rate climbed from $119.19 to $135 over that same period, pushing RevPAR from $87.91 to $92.36.
It’s evident that rates rose, but did they rise enough to offset the occupancy drop? Bains doesn’t think so.
“Airport hotels are performing well, but the rate just isn’t there anymore,” he says. “Rate cutting to get the occupancy is happening across the country for airport markets. It’s unpredictable – you might have a random drop or increase one month but it will do the complete opposite the next.”
Freitag adds that new supply growth in some airport markets may also contribute to softer occupancy levels. This makes the investor’s approach to airport product all the more important. Hilton, for one, looks closely at passenger volumes, the geographical reach of local businesses, infrastructure investment, and broader leisure and commercial demand generators when considering a project.
“We’re disciplined in our approach,” Wehling adds.
Still, he acknowledges it’s not always easy in today’s market.
“Today, travelers are more discerning than ever,” he continues.
To combat this, Wehling recommends diversifying demand generators. For example, Hilton BNA Nashville Airport Terminal, which opened in 2024, offers expansive meeting space, a music lounge and one of the largest rooftop spaces in Nashville.
“We’re appealing to a range of business, leisure and group travelers,” he says.
Bains agrees it’s time for airport owners to evolve for the new wave of air travelers.
“You need to be more proactive and pivot constantly,” he says. “If you maintain one strategy too long, you are behind.”