Can Fast Casual Investments Remain Lucrative in 2026?

Presently, LLMs do not have rich imagery and material, such as photos of the rooms and features, that consumers usually demand when making hotel bookings, Kletzel said. When this is boosted, including by brand names exposing their content to LLMs, that will be "a huge leap forward to getting customers comfy." Hotel visitor commitment and brand trust, meanwhile, has actually rapidly broadened in the last few years.

Beyond the visitor experience, agentic commerce has the possible to move the way hotel companies' consumer service groups run and are structured, Klein said. Yes," Klein stated.

Freddy's Frozen Custard & Steakburgers

This year, several collection brand names that launched in 2025 will continue to expand. Extra new brands and partnerships, particularly in the way of life segment, will likely debut as well, according to hospitality specialists. In 2025, Marriott released two collection brands: Series by Marriott, playing in the upscale space in the U.S., and Outdoor Collection, specifically focused on outdoor accommodations in destinations near national parks, deserts, ski areas and shorelines.

Marriott's Outdoor Collection offers distinct accommodations in destinations near nationwide parks, deserts, ski locations and shorelines.

Will Hospitality Franchises Remain Profitable in 2026?

Hilton's Outset Collection, particularly, has more than 60 hotels in the works across the U.S. and Canada, Kevin Osterhaus, president of way of life brand names at Hilton, informed Hotel Dive. Start is presently exploring possible new places in San Diego, Los Angeles and Virginia Beach, Virginia, along with markets in New Mexico and Colorado in 2026, Osterhaus stated.

"Collection brand names are appealing because they offer the finest of both worlds: Owners keep the unique DNA of their property, while unlocking worldwide circulation, earnings management, commitment and assistance. Kevin Osterhaus President of lifestyle brand names at Hilton From the guest point of view, independent boutique hotels are preferable due to the fact that they use authentic experiences, Gabriel Perez, primary operating officer of accommodations at The Indigo Road Hospitality Group, informed Hotel Dive.

However, when it comes to why the hotel business are chasing after independents in the lifestyle section, "it's not about the guests. It has to do with producing sub-brands within their own brand names to please financiers' requirements and to satisfy owner and designers' objectives," Perez stated. JLL's Davis echoed that sentiment, informing Hotel Dive that the market is at the point of, if not past the point of, brand name saturation, as "public companies [are] under an incredible quantity of pressure for net system growth." This, in turn, puts a lot more pressure on hotel companies "to produce brand names, micro brands and subsets of brand names in order to broaden their footprint of existing properties," Davis said.

Hilton's collection brands' "unique positioning and storytelling continue to drive interest across chain scales," Osterhaus stated. According to Bobby Molinary, Marriott's primary development officer for select brand names, interest in Marriott's brand-new collection brand names comes amidst a difficult high-cost-of-construction environment that has actually made it "increasingly tough to construct brand-new hotels." Series and Outdoor Collection, both conversion-friendly offerings, relate to an ownership community and designers who "are constantly trying to find methods to grow, and conversions represent a path for development," Molinary stated.

Freddy's Frozen Custard & Steakburgers

This year, Hilton plans to stay "very active in the lifestyle space through strategic collaborations, brand-new signings and continuous growth of our present brands," Osterhaus said. Another growing space is the luxury segment.

How to Scale Your Restaurant Group Efficiently

That pattern is expected to continue in 2026 as luxury consumers drive travel spending and hotel bookings in the middle of a wealth bifurcation at play in the market. "High-net-worth tourists are expected to remain one of the most trustworthy drivers of international travel costs next year," Giray Boran, handling director of BLG Capital, told Hotel Dive.