What’s Next for Hospitality in 2026? | By Kate Cheung

As the industry heads into 2026, many trends that emerged in 2025—such as experience-driven travel, operational efficiency, and the growing role of technology—are expected to continue, while others, including the widening performance gap between luxury and budget hotels and the integration of wellness and lifestyle offerings, are becoming more pronounced. After several years of volatility, travelers are increasingly prioritizing convenience, personal values, and meaningful experiences over simply choosing a destination. As we move into 2026, those priorities will shape the trajectory of some of the leading trends.

1. Artificial Intelligence: One of the biggest trends impacting all industries is the increased adoption of artificial intelligence (AI). In hospitality, hotels are using AI tools to analyze booking patterns, length of stay, and on-property spending to support revenue management, marketing, and operational decisions. According to a study by Cornell University’s Nolan School of Hotel Administration, hotels using AI-enabled revenue management systems have reported an average revenue increase of 7.2% over traditional systems. Amadeus Insight reports on the traveler side, 42% of consumers use AI to save time planning, 37% use it for personalized recommendations, and 36% use it to find new destinations. For hotel owners and operators, investing in AI has the potential to reduce labor costs, speed up decision-making, and help optimize pricing, staffing levels, and resource allocation.

However, AI is not a replacement for people. Guests may use AI to plan their trips, but once they arrive, they still expect warmth, flexibility, problem-solving (such as handling upgrades or unexpected issues), and human connections. The employee experience matters as well, where AI should support staff, not replace them, helping reduce repetitive work so employees can focus on service. The operators who will be most successful are those who balance automation with personal service, both behind the scenes and on the guest-facing side.

2. Hotels Are the Destination: Hotels are evolving from a place to sleep into a central part of the travel experience. Leisure travelers are seeking unique stays with a wide range of amenities that allow them to enjoy their trip without leaving the property. In many cases, the hotel sets the tone for the entire experience, offering convenience, immersion, and an escape from everyday life.

Resort properties are a strong example of this trend because they combine lodging with amenities, dining, entertainment, and excursions, giving guests everything they need in one place. Many are intentionally designed to function as self-contained destinations where guests spend most or all of their stay on property. Waterpark resorts reflect this operating model especially well. Properties such as Great Wolf Lodge and Kalahari Resorts & Conventions pair accommodations with waterparks, family entertainment centers, multiple food and beverage outlets, and daily programming. This momentum was further reinforced in November 2025, when Mattel announced plans for five Mattel Wonder Waterparks nationwide. H&LA completed feasibility studies for several of these projects, which are being designed as multigenerational destinations centered around Mattel brands such as Barbie and Hot Wheels, and immersive water attractions and amenities. Some locations will include directly connected hotels, while others plan to partner with nearby hotels, allowing families to fully immerse themselves in the experience while still supporting the surrounding hospitality market.

These properties support the continued growth of multigenerational travel in 2026, allowing families to share a destination while enjoying experiences that suit different interests. Adults increasingly value destinations that minimize planning and provide opportunities for both shared and individual experiences. Waterpark resorts are well-positioned to meet this demand by offering kid-focused attractions alongside adult-oriented amenities that encourage connection, shared experiences, and family bonding. WATG Advisory reports that children influence roughly 67% of family travel decisions, and properties with stronger children’s programming tend to see longer stays and higher overall guest spending than hotels with limited kid-friendly amenities. The appeal of all-in-one destinations and multigenerational travel is also reflected in the cruise industry. Cruise lines have expanded their offerings by developing private islands and destinations exclusive to their passengers, featuring beaches, waterparks, zip lines, adults-only areas, and organized excursions. These destinations offer an immersive environment with activities for all age groups.

Wellness and self-care continue to be a major component of the hotel and resort experience, but the definition of wellness has expanded beyond traditional spas and fitness centers. According to WATG Advisory, wellness travelers spend more than 40% above the average traveler per trip , and hotels with integrated wellness offerings have20% to 35% higher ADRs. After an eight-year renovation, the Waldorf Astoria New York reopened in July 2025 with a redesigned wellness spa that includes 16 treatment rooms, a cryotherapy chamber, a Moroccan hammam, three lounges, and curated three-day wellness retreats. Hotels are also incorporating wellness elements throughout the entire guest stay, including room design, lighting, air quality, acoustics, sleep quality, and dining options. These investments not only support higher rates but also encourage repeat visitation and stronger brand loyalty.

Food and beverage continues to play a growing role in hotel performance, with restaurants and bars increasingly positioned as “third spaces” where guests and locals can dine, gather, and socialize rather than simply transact. Dining has become a central part of the travel experience. Hilton reports approximately 50% of global travelers book restaurant reservations before flights, and nearly one in five travelers plan trips around culinary experiences. A reported 60% of luxury travelers prioritize staying at hotels with strong dining options.

According to CoStar, upper-upscale hotels account for an average of 57% of total food and beverage revenue, followed by luxury hotels at 36%. Properties with well-executed dining concepts are achieving higher ADR and stronger RevPAR due to increased demand and pricing power. Many hotels are also designing restaurants to attract locals to help stabilize revenue during off-peak and shoulder periods while strengthening ties to the surrounding community.

3. The Gap between Budget and Luxury Hotels continued to widen in 2025 and is expected to remain a defining trend in 2026. According to STR, luxury properties had year-to-date August 2025 RevPAR growth of 5.3% year-over-year compared to -1.8% in the economy segment. Luxury and upper-upscale hotels are emerging as the only segments to consistently generate positive RevPAR growth amid economic uncertainty. As discretionary spending tightens, many travelers are taking fewer trips but spending more per trip, reinforcing the trend toward “premiumization.” Luxury and upper-upscale resorts are leaning into experiential offerings, elevated food and beverage concepts, and wellness-driven programming that is unique and can be catered to guest preferences, justifying higher rates.

4. Lower Interest Rates: After several years of higher interest rates that slowed hotel transaction activity, the Fed lowered its benchmark rate multiple times in 2025, bringing the federal funds target range down to approximately 3.50%–3.75%, easing borrowing costs for investors. We expect these cuts to support increased hotel acquisitions, refinancings, new construction, and repositioning activity in 2026. Transaction volumes remain below pre-pandemic levels; however, there was an increase in transactions in the second half of 2025, particularly for well-located luxury and upper-upscale assets.

Despite the stabilized performance of the overall hotel industry, assets with strong experiential positioning and renovation potential continue to attract investor interest. Lower interest rates improve the feasibility of new construction, acquisition, and repositioning strategies, particularly where redevelopment can unlock rate growth without the cost and risk of new construction. For owners and operators, lower borrowing costs create the opportunity to improve balance sheet flexibility and invest in experiential enhancements that support competitiveness and rate growth.

5. Loyalty Programs are becoming a bigger part of how people travel, with hotels, airlines, and credit cards increasingly linked through shared rewards and partnerships. Travelers are increasingly shopping for destinations and accommodations within loyalty ecosystems they already trust, rather than comparing properties independently. Hilton and Marriott both note that loyalty members tend to book more frequently, stay longer, and spend more on property than non-members. According to Global Hotel Alliance, loyalty programs now rank above price and brand in booking decisions, with 70% of travelers valuing benefits that extend beyond the hotel stay into dining, wellness, and lifestyle experiences. Hilton reports that 62% of travelers are loyal to at least one program in each major travel category, such as hotels, airlines, and car rentals, and 66% of those travelers are willing to pay a premium to stay within a brand they trust.

However, the growing importance of loyalty programs also introduces challenges for owners, including higher redemption costs, brand fees, and margin pressure during peak redemption periods. Managing the balance between demand generation and profitability will remain a key focus for owners and operators in 2026.

To expand their loyalty ecosystems and grow distribution without relying solely on new construction, hotel companies continue to expand through acquisitions, partnerships, and the creation of soft brands. Marriott International introduced Series by Marriott in May 2025, a soft brand designed for new-build or existing independent midscale and upscale hotels. Similarly, Hilton launched the Outset Collection in October 2025, targeting upscale independent hotels with strong local identity. Soft brands allow hotels to maintain their unique character while benefiting from major brand booking channels, marketing platforms, and loyalty programs. The model has gained traction as travelers increasingly seek distinctive, locally rooted experiences but still prefer the familiarity, consistency, and rewards offered by trusted global brands. For owners, soft brands provide a flexible way to enhance distribution and pricing power without the full operational requirements of a traditional brand.

6. Interest in Outdoor and Nature-Oriented Accommodations has continued to grow, building on the momentum that began during the COVID-19 pandemic. Marriott introduced the Outdoor Collection by Marriott Bonvoy in 2025, integrating cabins, glamping-style units, and boutique hotels near national parks and outdoor recreation areas into its brand platform. Deloitte’s 2025 Summer Travel Survey found that 71% of travelers planned a road trip, reinforcing demand for drive-to and nature-based destinations. Skyscanner’s Travel Trends 2026 report shows that 76% of global travelers are considering a mountain getaway, with users using the platform’s “room with a mountain view” filter 103% more year over year. Travelers are increasingly seeking quieter, nature-focused stays that offer a sense of escape while still providing comfort and amenities. This shift aligns with broader preferences for wellness, sustainability, and meaningful experiences.

Conclusion
As the hospitality industry moves into 2026, success will increasingly depend on how well hotels adapt to shifting traveler preferences while managing operational and financial pressures. Properties that invest in experience-driven offerings, technology, wellness, and brand loyalty—while maintaining authenticity and human connection—will be best positioned to capture demand in an evolving travel landscape.