Orange County Hospitality Market Report

Opposite ends of the service spectrum notch gains. Orange County enters 2026 on a five-year streak of annual average occupancy improvement, a claim no other major West Coast hotel market can make. This performance is expected to continue as the metro is somewhat insulated from the impacts of a potential pullback in domestic travel. Entering 2026, full-service rooms accounted for 37 percent of Orange County’s room inventory compared to a national average of 22 percent. With higher-income households — those earning more than $200,000 per year — unlikely to curb their travel plans in 2026, the metro’s stock of upper-upscale and luxury properties will lead chain scales in average occupancy. The limited-service segment may also register encouraging growth as budget-conscious travelers continue to favor economy and midscale flags near Disneyland-Anaheim Convention Center, Highway 1, and John Wayne International Airport. Together, these lodging dynamics support a seven-year high overall occupancy, improving local property revenue metrics.