With less than 40 days until the 2026 FIFA World Cup kicks off across North America, a new report from the American Hotel & Lodging Association (AHLA) warns that the anticipated hotel boom may fall short of expectations.

Set to be the largest men's World Cup ever-48 teams, 104 matches-the tournament was expected to deliver a major economic boost to host nations. But the AHLA's latest outlook shows that anticipated demand has not translated into strong hotel bookings. Domestic travelers are outpacing international visitors, and FIFA room block cancellations, visa constraints, and rising costs are softening demand.

According to the report, 80% of surveyed hoteliers across 11 U.S. host cities report bookings below initial projections. International travel barriers and geopolitical concerns were cited by 65-70% of respondents as the primary drag on demand.

Rosanna Maietta, President and CEO of AHLA, said hotels have spent years preparing, but the data points to a more nuanced outlook. She called for a seamless experience for international travelers, warning against unnecessary cost increases on visas and transportation.

The impact varies by city. Kansas City, Boston, Philadelphia, San Francisco, and Seattle report the weakest demand, with some operators describing the World Cup as a "non-event" so far. In contrast, Miami and Atlanta are outperforming expectations due to strong leisure appeal and air connectivity. New York City, Los Angeles, Dallas, and Houston fall in the middle, with bookings in line with typical summer demand.

The AHLA notes that an "artificial early demand signal" from FIFA room block allocations inflated expectations. Roughly half of surveyed hotels now report significant room releases back into the market.

While spending may reach $4.3 billion, largely in hospitality, analysts at Oxford Economics say wider gains will be marginal and short-lived, with much demand simply displacing existing travel.