World Cup hotel bookings lag in US host cities

The World Cup was expected to deliver a tourism surge for the United States, but hotel bookings in host cities are running well below expectations.

A report by the American Hotel & Lodging Association found that reservations lag in nearly every city set to host matches. The group said the shortfall does not match Fifa's claim that more than five million tickets have been sold and raises the risk that the expected economic boost will fall short.

The AHLA represents more than 32,000 properties and over 80 percent of franchised hotels in the country. It partly blamed Fifa for reserving large blocks of rooms for its own use, which it said created artificial demand and pushed prices higher. After Fifa later canceled many of those rooms, hotels were left with a sudden drop in bookings.

Fifa said it does not accept the accusation and has followed agreements with hotel chains. A spokesperson said all room releases were made according to contract timelines and that the organization held regular talks with hotels on rates, room types and adjustments.

Hotels also cited high ticket prices, local transport and tax costs, and the political climate as factors keeping visitors away. The AHLA said hotels had spent years preparing and made major investments based on official forecasts.

A study commissioned by Fifa last year projected that the tournament could create 185,000 jobs in the United States and add $17.2 billion to gross domestic product. The AHLA said fewer overseas fans now threaten that broader impact, with just over three weeks until the opening match on June 11.

Up to 70 percent of rooms reserved by Fifa in Boston, Dallas, Los Angeles, Philadelphia and Seattle have been canceled, the report said. Prices rose sharply after the draw but have since fallen by about 20 percent in recent weeks. Even so, rates in some cities remain above $300 a night, well above what many fans planned to spend.

England supporter Chris Hancock, who has attended four World Cups, said his group of five is working with a budget of $75 per person per night. They plan to stay outside city centers and mix hotels with Airbnb rentals up to an hour away.

The AHLA said it expects occupancy to rise in June and July as more fans finalize plans once tickets and schedules become clearer. Airbnb said the tournament is on track to be its largest hosting event ever, surpassing the 2024 Paris Olympics.

Hotels may still gain from last-minute bookings during the knockout rounds, but the overall revenue is unlikely to reach earlier predictions.