What’s Next for Hospitality in 2026?

In 2025, the hospitality industry experienced a more normalized operating environment. Average daily rates grew modestly while overall occupancy softened, and demand remained stable amid rising operating costs and broader economic uncertainty. Several macro-level factors shaped hotel performance during the year. The implementation of new tariffs increased the cost of construction materials, furnishings, and equipment, making new development and renovation projects more expensive. At the same time, economic uncertainty and changing global conditions, including policy and political considerations, affected international travel patterns to the United States.

More Than a Bed: How Hotels are Unlocking Social Impact

In an industry where competition for guest loyalty is fierce, hotels are increasingly seeking innovative ways to differentiate themselves. But beyond offering exceptional service and top-tier amenities, what if hotels could leverage their existing assets to create tangible, lasting value for their communities? Purpose-driven hospitality is emerging as a powerful model for doing just that, and it doesn’t require significant new investments—only the smart repurposing of what’s already at hand: vacant rooms.

Lack of Feedback Is a Gift

There’s an old expression: Feedback is a gift. Whenever a customer is willing to take time to share feedback by talking to you, emailing you, or leaving an online comment, it’s a gift. It either validates that what you’re doing is working or points out opportunities to improve. Companies obsess over survey scores and online reviews, and that’s smart. But if you only focus on what customers are telling you, you might miss important feedback that’s unintentionally hidden in what they don’t mention.