Will Hospitality Investments Be Profitable in 2026?

Currently, LLMs do not have abundant imagery and material, such as pictures of the spaces and amenities, that customers typically demand when making hotel reservations, Kletzel said., meanwhile, has rapidly broadened in current years.

Beyond the guest experience, agentic commerce has the possible to shift the way hotel business' customer service groups operate and are structured, Klein said. Yes," Klein said.

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This year, numerous collection brand names that launched in 2025 will continue to expand. Additional new brands and collaborations, particularly in the lifestyle sector, will likely debut as well, according to hospitality professionals.

Marriott's Outdoor Collection offers unique lodgings in destinations near national forests, deserts, ski locations and shorelines. Thanks To Marriott International Wyndham Hotels & Resorts revealed its Dazzler Select brand extension targeting independent hoteliers in the economy way of life section. And IHG Hotels & Resorts touted its own forthcoming upper-tier collection brand name during third-quarter earnings.

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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 brands at Hilton, informed Hotel Dive. Start is currently checking out possible new places in San Diego, Los Angeles and Virginia Beach, Virginia, along with markets in New Mexico and Colorado in 2026, Osterhaus said.

"Collection brand names are appealing because they provide the best of both worlds: Owners keep the distinct DNA of their home, while unlocking global circulation, revenue management, commitment and support. Kevin Osterhaus President of lifestyle brands at Hilton From the guest perspective, independent shop hotels are desirable due to the fact that they use genuine experiences, Gabriel Perez, primary running officer of accommodations at The Indigo Roadway Hospitality Group, told Hotel Dive.

As for why the hotel companies are going after independents in the lifestyle section, "it's not about the guests. It's about developing sub-brands within their own brands to please financiers' requirements and to please owner and designers' goals," Perez said. JLL's Davis echoed that belief, informing Hotel Dive that the industry is at the point of, if not past the point of, brand saturation, as "public business [are] under a tremendous amount of pressure for net system growth." This, in turn, puts a lot more pressure on hotel business "to create brands, micro brands and subsets of brands in order to expand their footprint of existing properties," Davis stated.

Hilton's collection brands' "distinct positioning and storytelling continue to drive interest across chain scales," Osterhaus stated. According to Bobby Molinary, Marriott's chief advancement officer for select brands, interest in Marriott's new collection brands comes amid a difficult high-cost-of-construction environment that has actually made it "significantly difficult to build brand-new hotels." Series and Outdoor Collection, both conversion-friendly offerings, relate to an ownership community and designers who "are continuously trying to find methods to grow, and conversions represent a path for growth," Molinary said.

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This year, Hilton prepares to stay "really active in the way of life area through tactical collaborations, brand-new signings and continuous growth of our present brands," Osterhaus stated. Another growing space is the high-end section.

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That pattern is expected to continue in 2026 as high-end customers drive travel costs and hotel reservations amid a wealth bifurcation at play in the market. "High-net-worth travelers are anticipated to stay among the most reliable chauffeurs of worldwide travel spending next year," Giray Boran, handling director of BLG Capital, informed Hotel Dive.