Hoteliers anticipate strategic shifts for '26
Design, financing, revenue and sustainability all could change in new year
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https://www.costar.com/article/1270780453/hoteliers-anticipate-strategic-shifts-for-26?
Hoteliers entering 2026 are hopeful for a better year than 2025, but with a new year comes new challenges.
With that in mind, CoStar News Hotels recently took a look at some of the major issues and topics for the industry. Here are some of the takeaways.
Supply chain issues and cost creep are having impacts on hotel design, and one way this is expected to manifest in the new year is a shift in how hoteliers approach the concept of luxury. And this shift isn't just driven by costs, as luxury guests see value in a more authentic, grounded form of luxury.
"When you're visiting a hotel or a destination, you really want to be of that place, right? And you want to create an environment that is unique to that destination," Scott LaMont, CEO of EDSA — a design firm focused on planning, landscape architecture, and urban design — said. "One of the ways we can accomplish that is by bringing the materials that are from that region or from that area."
Experts described this trend as "quiet luxury" with Kevin Warwick, vice president of design and construction at Vision Hospitality Group noting "good design doesn't have to be expensive — it has to be thoughtful."
Much like designers, revenue managers are also seeing a shift in the new year, with many putting more of a priority on building out a solid base of group business in order to drive rate on transient.
“We're telling our sales teams, ‘Go out there, get in front of it, get that base on the books early, solicit early and often for that group business,’” said Leah McFarland, senior vice president of revenue strategy at Crestline Hotels & Resorts.
For many markets in North America, the biggest difference between 2025 and 2026 is likely to be the World Cup, but it's still unclear how that will all play out.
“Are we going to see an uptick to maybe the secondary markets that aren’t affected?” Harry Carr, senior vice president of revenue management at Pivot Hotels & Resorts, said. “Will we see a pop in Charleston because people are fleeing Atlanta? We’re working a lot on that to make sure that we understand how it will disrupt the overall summer. Even corporate and group might avoid a city over what’s going on.”
In many destinations around the globe, preserving natural beauty remains a top priority, and that's especially true at places like the Black Sand Hotel in the Ölfus region of Iceland.
As a nation, tourism is a big economic driver for Iceland, so finding the right balance of drawing in travelers with maintaining its allure as a destination is key.
“This is a truly unique setting, and we have the ability to create a memory. To hear the wows fuels what we do. There is the solitude, and being meters from the ocean, we have the calm. Guests can disconnect,” General Manager Óskar Vignisson said.
On the development and financing side, many investors have been watching how central banks — most notably the U.S. Federal Reserve — have been approaching interest rates of late, but Peachtree Group's head of originations and C-PACE Jared Schlosser said waiting out interest rates won't be the winning strategy for getting deals done and making projects pencil.
"When I send out a term sheet, the No. 1 thing that's negotiated these days is the rate floor because so many people have heard rates are going to get cut," he said. "People ignore things that are way more important than a rate floor, and they go straight to a rate floor. That just leads me to believe there's a lot of conversation out there that rates are just magically going to drop 100 or 200 basis points.
"Maybe they do," he continued. "I have no way to predict the future, but we've been saying this for the last few years, and they're relatively around the same rate as they've been since the large increase of [2022]."
Deals will pick up in 2026, but no gold rush expected
Hotel Investment Today advisory board members chime in on the expected deal pace as a new year once again creates bigger expectations.
https://www.hotelinvestmenttoday.com/Deals/Mergers-and-Acquistions/Deals-will-pick-up-in-2026-but-no-gold-rush-expected?
NATIONAL REPORT – Deal volume was disappointing once again in 2025 with PwC noting deal value dropping substantially with transaction size down 55% on average.
Will recent Fed activity start to loosen wallets? Will lenders return to the space with more conviction? Will distress finally reach a point of no more can kicking? Will REITs be the deal de jour? Or will soft performance forecasts lead to further pauses by equity players?
Hotel Investment Today reached out to its advisory board for some answer. We asked them if all the promises of a pronounced pickup in M&A will finally come to fruition in 2026? Here are their responses:
Sean Hehir, managing partner, Trinity Investments
“We anticipate a stronger market in 2026 – driven by private equity, strategic/transformative deals, and a release of pent-up demand from 2024-2025. In particular, we believe PE-backed deals, buyouts, and take-privates as key drivers of M&A activity.”
Ben Rafter, CEO, Hotel Equities
“Distress and fatigue may cause M&A to tick up, albeit with Marriott’s embarrassing Sonder problem it likely won’t be coming from the big flags. Management companies are looking for alternatives as a lot of CEOs/owners/founders held on through COVID and are now five years out looking for things to do. Hence the “fatigue” commentary. Properties themselves are going to find themselves in distress and something may actually happen this year.”
David Duncan, president and CEO, First Hospitality
“On the REIT side – something has to give. However, fairly high interest rates remain an issue for M&A in the REIT space. C Corp unit growth remains a big challenge with low supply growth so likely activity in that space.”
Eric Jacobs, chief global growth officer, Aimbridge Hospitality
“I am not convinced the lenders are ready to push the button yet. If there is any way current administration can find a way to lower the rate to open more dollars back into the market then there may be chance. But with declining ‘demand’ (domestic and especially International), I don’t think there is real upside for new buyers unless the Fed opens up the spigot. Our industry needs a reset on “basis,” which no one wants to face.”
Adi Bhoopathy, managing principal, head of Capital Markets, Noble Investment Group
“It has been an active transaction year for Noble, but the overall transaction market has been muted for the past couple of years. Yes, we expect an uptick in hotel M&A in 2026, driven by stabilizing capital markets, owners facing refinancing challenges/PIP costs, and increased underwriting visibility, creating a ‘perfect recipe’ for increased transaction activity.”
Glyn Aeppel, founder, president, CEO, Glencove Capital
“Renewed liquidity (especially credit) is reactivating deal flow, which should be demonstrated through increased M&A and transactional activity. While there remains a gap between buyers and sellers regarding valuation, I am hopeful that this will narrow and results in action.”
Philip “Flip” Maritz, managing director Broadreach Capital Partners, co-founder, Maritz, Wolff & Co.
“I expect more M&A but muted, helped by better debt capital markets plus accelerated action on distressed loans.”
Maki Nakamura Bara, president, co-founder, The Chartres Lodging Group
“Maybe? Not really? While 2025 transactions have definitely underachieved the optimism that was expressed at the end of 2024, there appeared to be some undercurrents of momentum building at the end of the year. But to have a pronounced pickup, uncertainties will need to be resolved, even with a negative outcome (uncertainty is worse than a certain negative outlook for transaction activity). For example, New York City union contract in 2026, tariffs, many other geopolitical issues, etc.”
David McCaslin, co-founder, CapStar Advisors
“M&A will creep back up in 2026, but I don’t expect a massive change. Many deals are still within their execution periods and while the environment will be more welcoming it will still be a selective market, not a rush that pulls everyone along.”
Why This Major Cruise Line Is Pulling Ahead With Its Mixology Program
Tom Donders/Unsplash
https://www.fodors.com/news/cruises/cruising-the-open-seas-with-a-celebrity-mixologist
In the race of cruise lines battling it out for the most unique mixology program, one cruise line has pulled ahead.
Cruise lines are always battling to stand out in the mixology race—rolling out everything from the “best bars at sea” to robot bartenders. But Holland America is taking a decidedly more intentional approach.
Their latest brand campaign, “Savor the Journey,” leans into richer, more meaningful onboard moments, where the journey is every bit as important as the destination. And with the launch of their Culinary Ambassadors Cruises, featuring world-renowned chefs and beverage experts, they’re doubling down on what truly elevates a voyage—connection, craft, and flavor.
Join me—Jordan Campbell of Global Debauchery—for a Holland America Baja Peninsula cruise with a special appearance by James Beard-nominated mixologist Ivy Mix. Ivy Mix is co-owner of Brooklyn bar Whoopsie Daisy and Fiasco! Wine + Spirits bottle shop. She is the author of Spirits of Latin America and co-founder of Speed Rack, a woman-only, high-speed bartending competition that has raised more than $1 million for breast cancer research.
Onboard she shook things up with an entire cocktail line inspired by Mexican and South American spirits, where her in-depth knowledge of agave products underlined Holland America’s dedication to their trademark Destination Dining concept.
12 Secret Travel Terms That Can Transform Your Vacations
Natalya Kosarevich/iStock
https://www.fodors.com/news/photos/secret-travel-terms-that-can-improve-your-vacations
Ghost rooms, mileage and mattress runs—how knowing how these work can change your trip planning for the better.
Traveling involves getting used to new sights, sounds, and tastes. It may also involve learning new phrases and terms, some of which may sound odd the first time you hear them. Learning new phrases can not only help you become familiar with travel jargon, but this knowledge can also help you learn new concepts, which can help you travel better and save money.
Here are 12 travel terms that can help transform the way you travel.
Ghost Room
Ghost rooms don’t exist solely in haunted houses. Sometimes travelers book a hotel room with no intention of sleeping there. Often, they will pay for the room without complaint. Although booking a ghost room that remains empty throughout the night may seem like a waste of money, it is a good strategy for some travelers. For example, some immigration officials require travelers to provide proof of accommodations for their entire trip before allowing them into the country. Travelers without set plans may book inexpensive ghost rooms to ensure they aren’t turned away at the border.
Booking ghost rooms is also a popular tactic among theme park visitors. Some theme parks offer perks like early entry or express passes to guests staying at on-site hotels. Sometimes booking a ghost room is less expensive than buying these perks separately. Theme park guests who want a bigger room off-site or only need express passes for two days out of a week-long trip may find that a ghost room works for them.
Mattress Run
Mattress runs aren’t a strange new kind of marathon. Instead, some travelers go on mattress runs at the end of the year if they are a night or two shy of retaining, or unlocking, elite status with a hotel brand. Typically, a mattress run involves booking the least expensive, loyalty-qualifying room close to home. “This one is particularly popular among American travelers, as one inexpensive mattress run can often unlock room-upgrade perks for future stays,” at chains like Accor, Marriott, Hilton, and Hyatt, explains Daniel Herszberg, the co-founder of Travel Insighter, who has visited every country in the world. The value of these perks, which may also include complimentary breakfast, late checkout, and other benefits, is often greater than the cost of a few nights at a value hotel.
Positioning Flight
Many travelers default to looking for flights in and out of their closest airport. They also default to only looking for flights arriving in the city they are visiting. However, for long-haul flights, a better strategy may be to search multiple airports for the best fare and book a positioning flight to get there.
For example, if you live in Minneapolis, you may find that it’s much less expensive to fly to Europe from New York City. Booking a positioning flight to New York City to catch the cheaper flight may result in significant savings. Positioning flights to get you to your final destination will also work well for some travelers. “Starting your trip in Madrid, Milan, or Dublin can significantly reduce fares to more expensive hubs like London,” explains Herszberg. Positioning flights may help all kinds of travelers save, but the biggest savings are usually in premium seats, he says.
Mileage or Points Run
The concept of mileage or points runs has become more well-known in recent years, but not everyone is familiar with these terms. Similar to mattress runs, some travelers may book a cheap ticket on an airline to build or maintain status. “Often, one regional segment will unlock a new tier of travel status,” Herszberg explains. For some frequent flyers, taking a short, inexpensive flight can unlock perks such as priority boarding, a higher chance of upgrades, free checked luggage, and more. For these travelers, a mileage or points run is worth the hassle.
Fifth Freedom Flights
For most flights, airlines operate within the country that serves as their home base, or they operate flights to and from that base. For example, Icelandair typically flies to and from Iceland and other countries, using Iceland as a hub. That’s why Icelandair flights from New York to Paris, for example, have a layover in Iceland’s capital of Reykjavik.
However, there are exceptions, known as Fifth Freedom flights. Airlines need a series of permissions to operate flights that neither begin nor end in the country that serves as their home base, so these flights are rare. However, if you find one, you may get a deal on a top-tier airline.
“Some more famous fifth freedom routes operating to the U.S. include Emirates between Athens and Newark, and between Milan and JFK, as well as Singapore Airlines between Frankfurt and JFK,” Herszberg says. Because Fifth Freedom flights may be less expensive, “aviation nerds will often seek out Fifth Freedom flights, particularly to try airlines which may otherwise be out of reach,” he said.
Nested Trip
Nested trips can be used in various ways to save money on airfare. “A nested trip is essentially when you place one return booking inside another to reduce fares,” Herszberg explains. Herszberg finds this trick especially useful in Europe. To create a nested trip, a passenger might book a round-trip ticket from Los Angeles to Madrid on a major carrier, even if they intend to visit multiple cities on the continent. Once their round-trip ticket is booked, the same passenger can buy low-cost tickets within Europe on carriers such as Ryanair, Wizz Air, or EasyJet. Buying nested tickets can help save a ton compared to booking all flights in a single booking.
Another, more complicated way of nesting trips may work well for people who frequently travel between the same destinations. For example, a nested trip may be an excellent option for people who travel home for Thanksgiving and Christmas. To nest a trip, a passenger might book a round-trip ticket from New York to Los Angeles from November 25 to December 31. Then, they would book a second round-trip ticket in the reverse direction, from Los Angeles to New York, for November 28 to December 24. Booking a nested trip takes some legwork, but the savings may be worth the effort.
Schengen Shuffle
Long-term American travelers to Europe often face an unpleasant obstacle. Unless they have a special type of visa, visitors from outside the European Union are limited to staying in Europe’s Schengen zone for 90 out of every 180 days on a rolling basis. The Schengen zone includes 29 European states, some of which are part of the EU and some of which are not. Non-EU visitors who want to stay in Europe longer than 90 days without running afoul of the law need to plan carefully. Often, this involves doing the Schengen Shuffle, which involves moving in and out of Schengen countries on a rolling basis to stay in compliance with Schengen rules. Figuring out how to do the Schengen Shuffle can be complicated. Using a Schengen calculator can help.
Visa Run
Every country has its own rules for visitors, so it’s important to do your research before traveling. Outside of the Schengen zone, rules vary widely. “Many countries have generous visa periods for Americans, 90 or 180 days,” Herszberg says. However, this isn’t long enough for everyone. For travelers who want to take a longer trip, a visa run can help. “Often, you can do a simple visa run, fly in and out on the same day, to restart your 90-day period,” Herszberg says.
Repositioning Cruise
Most cruises are closed-loop, meaning they stop and start at the same port. However, not all cruises follow this pattern. A repositioning cruise, sometimes called a “repo cruise,” is a one-way journey that involves a cruise ship moving from one location to another for the season, explains Susan Catto, the Head of Publishing and Production, Canada at Travelzoo. “For example, a ship that spends the winter sailing around the Caribbean may move to the Mediterranean for the summer season to take advantage of the warmer weather,” she says.
Repositioning cruises may stop at ports along the way, but unlike traditional cruises, passengers usually spend several consecutive days at sea. Repositioning cruises are growing in popularity because they are often more affordable than traditional cruises, and they may stop at off-the-beaten-path ports, Catto says. Repositioning cruises may also be a good choice for those who don’t like flying and for those traveling with pets. However, because repositioning cruises are one-way trips, you need to find your own way home.
Run-of-House
Run-of-house, or RoH, is a booking method in which travelers do not book a specific room type. Instead, they leave the room choice up to the hotel. RoH rooms are typically offered on booking platforms and hotel websites at a reduced rate to give the hotel flexibility to fill any rooms that are not booked, Catto explains.
“The type of room that travelers receive depends entirely on what is available, so those who enjoy flexibility and are not particular about their accommodations can come away with great savings,” she says. Catto notes that RoH bookings involve an element of surprise. Travelers who book a RoH room may wind up with a huge suite or a tiny single. Those with RoH bookings who aren’t happy with their room shouldn’t be shy about asking for an upgrade since their reservation isn’t tied to a particular room type. However, “don’t complain to the front desk if you end up in a room next to the busy elevator,” Catto says.
The 24-Hour Rule
Many affordable airline tickets are labeled as nonrefundable, but that’s not always true. “For cash fares purchased at least 7 days in advance, directly with the airline, for flights flying into or out of the U.S., the airline must either allow you to hold the fare for 24 hours, or allow you to cancel the flight within 24 hours of booking,” says Tiffany Funk, president and co-founder of point.me, a search and booking engine for finding award flights. According to Funk, most airlines choose to allow customers to cancel within 24 hours of booking. “This is very helpful if you see a great fare but aren’t sure if you can take the trip. You can book it so you don’t miss a great price, and then decide within 24 hours if you’re able to go,” Funk says.
EU261
Travelers to, from, and within Europe need to know about EU261. EU261 is an EU law that establishes the “compensation and assistance airlines must provide to passengers in the event of delays, cancellations, or when a passenger is bumped,” Funk explains. The rule applies if you are flying within the EU, arriving into the EU on an EU airline, or departing from the EU on any airline, she says. The amount of compensation varies depending on many factors, including the length of the delay. “Passengers don’t need to know all the ins and outs of the rules, but they should know that the rules exist,” so they can look up what type of compensation they are entitled to if their travel is disrupted, Funk says. If your travel to Europe is disrupted, ask about EU261 by name to get your compensation.
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