Top Fabric, a chenille fabrics supplier, identifies 10 US cities with rising hotel demand and limited supply, highlighting development opportunities for investors.
Top Fabric Identifies Emerging Hotel Markets
ALTRINCHAM, US — August 26, 2026 — Top Fabric, a supplier of upholstery fabric by the yard to hospitality groups, interior designers, furniture manufacturers, across the United States, has released a new study identifying 10 US cities where visitor demand is rising faster than hotel supply. The research highlights potential opportunities for developers, operators, and investors seeking less saturated markets.
The study analyzed population size, tourism volume, hotel inventory, local attractions, hotel-related search demand, and average room rates to identify destinations where traveler interest appears to be outpacing accommodation availability. Cities were scored to reveal where hotel demand is strongest relative to existing supply, highlighting markets that could be primed for future development.
Research Findings
According to the research, nearly 70% of the fastest-growing travel interest is focused on US locations, while search demand for domestic travel continues to rise year-over-year. This broadening of demand presents a clear opportunity for hotel developers and investors, as many mid-sized cities are attracting visitors well before hotel supply catches up.
The top 10 US cities with the greatest hotel development potential in 2026 are: Hot Springs, Arkansas; Key West, Florida; Myrtle Beach, South Carolina; Sandusky, Ohio; Florence, South Carolina; Bangor, Maine; Charleston, West Virginia; Ithaca, New York; Binghamton, New York; and San Luis Obispo, California.
Among the standout markets, Hot Springs ranked first overall, combining strong tourism demand, limited hotel density, and a substantial attraction base. Key West and Myrtle Beach also ranked highly, demonstrating that even well-established leisure destinations may still present opportunities for strategic hotel expansion.
Industry Perspective
Ellie E.K., Managing Director at Top Fabric, commented on the findings: “For hotel developers, the biggest opportunities are often found just before a destination reaches the mainstream. What stood out in this research was the number of mid-sized cities attracting significant visitor interest despite having relatively limited hotel inventory. When traveler demand begins to outpace accommodation supply, it can create favorable conditions for occupancy, room rates, and long-term investment growth.”
From working with hospitality groups, interior designers, furniture manufacturers, and commercial refurbishment projects across the country, Top Fabric has observed increasing interest in emerging markets rather than traditional gateway destinations alone. Developers are looking for locations where they can establish a presence before competition intensifies, and many of the cities highlighted in this report fit that profile.
About Top Fabric
Top Fabric is a leading supplier of chenille fabrics, jacquard fabrics upholstery materials, serving hospitality groups, interior designers, furniture manufacturers, and upholstery professionals across the United States. The company provides a wide range of high-quality fabrics for commercial and residential projects, with a focus on durability, style, and functionality.
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Company: Top Fabric
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Website: http://topfabric.com