Key Global Milestones in Hospitality Development

, hospitality market leaders are looking toward 2026 with mindful optimism. Increasing functional expenses are slated to challenge owners this year and lower-tier sections might struggle amid a growing wealth bifurcation.

And through it all, hotel business are expected to strengthen their portfolios with brand-new brand name offerings and partnerships. As the year gets underway, Hotel Dive spoke with hospitality leaders from differing corners of the industry about their 2026 predictions. Below are the leading trends expected to impact hotel operations, performance, net unit growth and more this year.

Total salaries, salaries and benefits paid by U.S. hotels increased to $127 billion in 2025, according to information from the American Hotel & Lodging Association, shared with Hotel Dive. In 2026, that figure is forecasted to reach $131 billion, representing an approximately 3% year-over-year increase, per AHLA. For hotel owners, increasing labor expenses present a challenge to net operating earnings growth, Kevin Davis, Americas CEO at JLL Hotels & Hospitality, told Hotel Dive.

The Outlook of 2026 Brand Growth Strategies

Rising labor costs have actually been an obstacle for hoteliers for years, Davis stated, particularly following the COVID-19 pandemic. Overall, hotel labor costs have actually increased 15.3% from 2019 to 2025, surpassing the 12.8% growth in overall operating profits, according to AHLA.

3, 2024 in San Francisco, California. Justin Sullivan through Getty Images In 2026, Davis noted, union negotiations will be "front and center" in New York City, where the New York City Hotel and Gaming Trades Council's union contract with the Hotel Association of New York City is set to end in July.

"Need has actually not kept up with this speed," she said. Incomes, salaries and payroll-related costs paid by hotels now account for more than 32% of total earnings, according to AHLA.

The Outlook of Global Brand Expansion Milestones

As more hotel guests turn to artificial intelligence to boost their travel experience, scheduling hotels directly through large language designs (LLMs) may be next, hospitality professionals stated. Agentic commerce a procedure by which self-governing AI agents act upon behalf of a customer to find, compare and complete purchases is a pattern that has sped up throughout markets like retail.

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According to PwC's 2025 Vacation Outlook report, 76% of millennials stated they're likely to use AI for travel suggestions. That number is growing, Jonathan Kletzel, PwC's travel, transportation and logistics leader, informed Hotel Dive. Michael Klein Head of retail, travel and hospitality item marketing at Talkdesk To stay competitive with direct booking, larger multibrand hotel companies will "embed LLMs into their own brand name sites and mobile apps, and alter the method the customer searches," Kletzel said.

"If you are not discoverable in an LLM search result which numerous brand names aren't, and this is the huge panic that they're all going through right now customers aren't going to consider you," he stated. Michael Klein, head of retail, travel and hospitality item marketing at AI customer experience platform Talkdesk, similarly told Hotel Dive that hospitality players need to ensure their residential or commercial property info is being indexed by LLMs to appear in traveler queries.