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U.S. Hotel Industry Faces Uncertainty but Eyes Strategic Growth in 2026 – Image Credit Unsplash+
Economic Uncertainty Challenges the Hospitality Sector
The hospitality industry has been grappling with significant uncertainty throughout the year, primarily due to fluctuating international travel trends and rising costs of materials and food. Hotel executives at The Lodging Conference highlighted the impact of unpredictable policy shifts in the U.S., which have created challenges for business planning and execution.
Joe Berger, President and CEO of BRE Hotels & Resorts, emphasized the difficulty of navigating the current environment, stating, “What’s tough on our industry always is uncertainty.” Leeny Oberg, CFO and Executive VP of Development at Marriott International, noted that frequent tariff announcements and international policy changes disrupt the sequential planning process necessary for hotel project execution.
Impact of Policy and Travel Trends
The decline in Canadian travel to the U.S., influenced by political rhetoric, has been a significant concern. Tourism Economics projected a 20.2% decrease in Canadian visitors to the U.S. in August. Beth McMahon, President and CEO of the Hotel Association of Canada, expressed hope that ongoing meetings between U.S. and Canadian officials might lead to improved relations and stability.
Kamalesh Patel, Chairman of the Asian American Hotel Owners Association for 2025-2026, highlighted the inconsistent return of corporate travel across different markets. He stressed the importance of adaptability and patience in navigating these uncertain times.
Opportunities and Optimism for 2026
Despite the current challenges, industry leaders remain optimistic about 2026. Joe Berger sees the same uncertainty that troubled the industry this year as a potential opportunity for growth. He believes that focusing on demand dynamics and adapting to a volatile environment will be crucial for success.
Kevin Davis, CEO of JLL Hotels & Hospitality Americas, expressed cautious optimism for improved transaction activity in 2026, citing substantial capital reserves and active debt funds in the hospitality sector. He noted the disconnect between capital markets and the real economy, emphasizing the industry’s reliance on consumer and business activity.
Strategic Investments and Market Dynamics
Arash Azarbarzin, CEO of Highgate, observed that while hotel rates and costs are rising, there is still potential for a strong return on investment. He emphasized the importance of strategic partnerships and value addition in asset acquisitions.
Justin Knight, CEO of Apple Hospitality REIT, highlighted the potential for strategic shifts in a quiet hotel deals environment. He pointed out that current market conditions offer opportunities to acquire assets at favorable prices, allowing for long-term portfolio growth.
Discover more at CoStar.
U.S. Hotel Industry Faces Uncertainty but Eyes Strategic Growth in 2026 – Image Credit Unsplash+
Economic Uncertainty Challenges the Hospitality Sector
The hospitality industry has been grappling with significant uncertainty throughout the year, primarily due to fluctuating international travel trends and rising costs of materials and food. Hotel executives at The Lodging Conference highlighted the impact of unpredictable policy shifts in the U.S., which have created challenges for business planning and execution.
Joe Berger, President and CEO of BRE Hotels & Resorts, emphasized the difficulty of navigating the current environment, stating, “What’s tough on our industry always is uncertainty.” Leeny Oberg, CFO and Executive VP of Development at Marriott International, noted that frequent tariff announcements and international policy changes disrupt the sequential planning process necessary for hotel project execution.
Impact of Policy and Travel Trends
The decline in Canadian travel to the U.S., influenced by political rhetoric, has been a significant concern. Tourism Economics projected a 20.2% decrease in Canadian visitors to the U.S. in August. Beth McMahon, President and CEO of the Hotel Association of Canada, expressed hope that ongoing meetings between U.S. and Canadian officials might lead to improved relations and stability.
Kamalesh Patel, Chairman of the Asian American Hotel Owners Association for 2025-2026, highlighted the inconsistent return of corporate travel across different markets. He stressed the importance of adaptability and patience in navigating these uncertain times.
Opportunities and Optimism for 2026
Despite the current challenges, industry leaders remain optimistic about 2026. Joe Berger sees the same uncertainty that troubled the industry this year as a potential opportunity for growth. He believes that focusing on demand dynamics and adapting to a volatile environment will be crucial for success.
Kevin Davis, CEO of JLL Hotels & Hospitality Americas, expressed cautious optimism for improved transaction activity in 2026, citing substantial capital reserves and active debt funds in the hospitality sector. He noted the disconnect between capital markets and the real economy, emphasizing the industry’s reliance on consumer and business activity.
Strategic Investments and Market Dynamics
Arash Azarbarzin, CEO of Highgate, observed that while hotel rates and costs are rising, there is still potential for a strong return on investment. He emphasized the importance of strategic partnerships and value addition in asset acquisitions.
Justin Knight, CEO of Apple Hospitality REIT, highlighted the potential for strategic shifts in a quiet hotel deals environment. He pointed out that current market conditions offer opportunities to acquire assets at favorable prices, allowing for long-term portfolio growth.
Discover more at CoStar.
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The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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