Hotel executives met at the 2026 Lodging Conference in Phoenix. They said the industry is in fairly good shape despite economic and geopolitical volatility. Year-to-date average daily rate rose 3.7% over last year. Excluding June and July, the increase was 2.9%. Rising undistributed expenses are outpacing revenue growth. AI is reshaping how guests search and book properties. It also enables more personalized guest experiences. Outdoors-focused hospitality is growing as travelers seek nature-based stays. Luxury properties now compete on experiences and reliable technology. Consolidation in the outdoors segment is expected to rise.
- ADR up 3.7% year over year
- ADR up 2.9% excluding June and July
- 50-50 split between OTAs and brands in AI-driven travel search
Sources