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Puerto Rico Reaches a New Lodging Revenue Milestone

Thursday, June 18, 2026 Research

Puerto Rico Leads U.S. Hotel Demand Growth

The May 2026 Tourism Economics newsletter highlights that U.S. travel demand is still growing, but at a more moderate pace than in recent years. Economic pressures such as inflation and higher travel costs are making consumers more cautious, even though many still prioritize taking trips. Overall, the industry continues to expand, just with more measured growth.

Domestic travel remains the main driver, as travelers choose shorter, more affordable trips closer to home. International travel is gradually recovering, supported by improving global conditions and major events, but it has not fully returned to pre-pandemic levels in all regions.

Meanwhile, traveler behavior is shifting toward value and flexibility. People are spending more carefully, comparing options, and looking for better deals, while higher-income households account for a larger share of travel spending. Despite these adjustments, economists emphasize that tourism demand remains resilient amid ongoing economic uncertainty.

According to the U.S. Travel Association, Puerto Rico’s hotel demand grew 7.6% year-to-date through April, the highest among all states and well above the U.S. average of 2%. On a monthly basis, lodging demand in Puerto Rico has consistently outpaced the overall U.S. market since July of last year.

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Hotel Occupancy Reaches Its Highest Level Since 2023

According to STR estimates as of early June and AirDNA, total May lodging demand across the island continues to outpace last year, rising 7% and 8% year-to-date with more than 3.8 million nights booked. May alone recorded more than 366,000 hotel room nights (+6% year-over-year), while short-term rental demand reached 320,000 nights, up 9%.

Based on STR daily performance, Puerto Rico’s May hotel occupancy averaged 73%, up five points from last year and hitting its highest level since 2023, while rental occupancy increased by 3 points from last year to 54%. May’s average daily rate (ADR) also set a new high at $278 per hotel night (+6%), while rental average rates remained steady at $190. Meanwhile, year-to-date average rates are also surpassing last year’s levels, with hotels averaging $344 (+2%) and rentals averaging at $202 (+1%).

Based on STR weekly performance, U.S. hotel occupancy in May 2026 is estimated at approximately 64%–65%, reflecting stable demand levels with slight year-over-year improvement driven by strong holiday and leisure travel periods. While demand remains steady nationally, Puerto Rico continues to outperform, with stronger occupancy levels and demand growth supported by sustained leisure travel and limited supply expansion.

Puerto Rico Surpasses $1 Billion in Lodging Revenue.

Total May lodging revenues reached an estimated $163 million, a 12% year-over-year increase and setting a new monthly record. Hotels contributed $101 million, enjoying a RevPAR of $203 (+13%).

The rental segment showed similar growth in May, generating $61 million, a 10% increase from last year, and accounting for 37% of the market's revenue share. By region, rentals in the San Juan area generated $17 million in revenue (+8%), while rentals in the South region reached over $1.7 million (+3%). Rentals in the East were flat at $11 million, while the West grew 15% to $12 million. Rentals in the central mountain area of the Island generated $1.1 million in rental revenue, up 10% year-over-year, while Vieques had the highest growth by region, with 33% more revenue than May of last year, reaching $1.6 million.

Year-to-date lodging revenue from STR and AirDNA has surpassed $1 billion, up 9% compared to last year, marking the earliest this milestone has ever been achieved. Hotel revenue rose 9% to $683 million, while short-term rental revenue also increased 9%, reaching $381 million.

Air Capacity to Puerto Rico’s Regional Airports Continues to Grow

Arrival growth for the first quarter this year at Aguadilla and Ponce Airports was mixed: BQN arrivals reached 74,600, about 12% less than the same time last year and the lowest number since 2022, while Ponce welcomed 19,500 passengers, a year-over-year increase of 9%.

The combined summer 2026 air capacity into Puerto Rico’s secondary airports will grow by 7% this year, led by Aguadilla as the primary gateway outside the San Juan metro area. Total scheduled seats into Aguadilla will rise from approximately 36,900 in June to a year-high of 41,600 in August, before tapering to 33,300 in September. In comparison, Ponce operates at a smaller scale, growing from about 10,400 seats in June to 15,800 in August, then easing to 13,400 in September. The data highlights a clear regional concentration of airline capacity in Aguadilla, which continues to capture the majority of summer demand among regional airports.

Across both airports, Orlando remains the dominant origin market, accounting for the largest share of seats each month, while secondary contributions from Fort Lauderdale and Northeast markets provide additional connectivity, particularly in Aguadilla, where the route mix is more diversified. By airline, JetBlue will offer 58% of the summer service into Ponce and 59% of Aguadilla, while Frontier will cover 42% of Ponce and 26% of Aguadilla, and the remainder 15% of the lift into Aguadilla is provided by United Airlines.

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