Analyzing Fast Casual Sector Growth Data for 2026

, hospitality industry leaders are looking towards 2026 with mindful optimism. Increasing functional expenses are slated to challenge owners this year and lower-tier sectors might have a hard time amid a growing wealth bifurcation.

And through it all, hotel companies are anticipated to strengthen their portfolios with brand-new brand offerings and collaborations. As the year gets underway, Hotel Dive consulted with hospitality leaders from differing corners of the market about their 2026 predictions. Below are the top trends anticipated to impact hotel operations, efficiency, net system growth and more this year.

Total salaries, wages and advantages paid by U.S. hotels increased to $127 billion in 2025, according to information from the American Hotel & Accommodations Association, shown Hotel Dive. In 2026, that figure is forecasted to reach $131 billion, representing a roughly 3% year-over-year increase, per AHLA. For hotel owners, rising labor costs present a difficulty to net operating income development, Kevin Davis, Americas CEO at JLL Hotels & Hospitality, informed Hotel Dive.

Why Hospitality Brand Value Will Be Rising

Rising labor expenses have been a challenge for hoteliers for years, Davis said, particularly following the COVID-19 pandemic. Overall, hotel labor costs have increased 15.3% from 2019 to 2025, surpassing the 12.8% growth in overall operating earnings, according to AHLA.

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

"Need has not stayed up to date with this rate," she said. "We're also seeing these challenges intensified by legislation that targets hotel operations, such as severe labor and licensing policies like the New York City City Safe Hotels Act. When need is falling and costs are skyrocketing, the math just doesn't add up." Salaries, incomes and payroll-related costs paid by hotels now represent more than 32% of total earnings, according to AHLA.

Strategic Steps for Restaurant Corporate Scaling

As more hotel guests turn to expert system to enhance their travel experience, booking hotels directly through large language designs (LLMs) may be next, hospitality specialists stated. Agentic commerce a procedure by which self-governing AI representatives act on behalf of a customer to discover, compare and finish purchases is a pattern that has actually sped up across markets like retail.

Freddy's Frozen Custard & Steakburgers

According to PwC's 2025 Holiday Outlook report, 76% of millennials stated they're most likely to utilize AI for travel recommendations. That number is growing, Jonathan Kletzel, PwC's travel, transport and logistics leader, told Hotel Dive. Michael Klein Head of retail, travel and hospitality product marketing at Talkdesk To remain competitive with direct booking, larger multibrand hotel business will "embed LLMs into their own brand name sites and mobile apps, and change the way the consumer searches," Kletzel said.

"If you are not visible in an LLM search result which lots of brand names aren't, and this is the big panic that they're all going through right now customers aren't going to consider you," he said. Michael Klein, head of retail, travel and hospitality item marketing at AI consumer experience platform Talkdesk, similarly informed Hotel Dive that hospitality gamers require to ensure their residential or commercial property info is being indexed by LLMs to appear in tourist inquiries.