AI-powered travel search, smarter chatbots shape hotel tech trends for 2026
While this year might not be a breakthrough in innovation for the hospitality industry, hoteliers can expect to see continued improvement and adoption of artificial intelligence-powered systems.
"It's absolutely going to be another building year, but you know, with each building year, I think we do a better job of predicting business levels, using these systems to better prepare and plan for our existing operations, new developments and acquisitions alike," said Charles Oswald, CEO of Aperture Hotels.
AI advancement is moving at an incredible pace, said David Sjolander, vice president of HTNG operations at the American Hotel & Lodging Association. AI-enabled tools such as chatbots and search are rapidly improving.
"In our industry, things don't usually change very fast," he said. "It's usually pretty slow and AI is forcing us to move a lot quicker than we are used to moving."
AI search for travel booking
More travelers are turning to AI to find and even book hotel stays. According to a Booking.com report from last year, 89% of consumers want to use AI in travel planning. This growth in AI search is top of mind for hoteliers, Sjolander said.
"I have a lot of discussions with different groups of our members, and it seems like every one right now devolves into a discussion about search, the changes that are happening in search and the shift from traditional search through Google," he said.
This shift is reminiscent of the rise of online travel agents, Sjolander said, adding that hoteliers need to focus on not getting left behind.
"We're at a real pivot point on the distribution side," he said. "When OTAs came on the scene, everything changed in terms of distribution, ... we're perhaps at a similar turning point now again because of AI in terms of how hotels get booked, and so the hotels really need to understand the landscape and they can't just sit back and wait and see what happens. They really have to proactively manage this process."
Chatting with the large-language-model platforms has improved markedly in the past 12 to 18 months, Oswald said, and the hotel industry might "have a hard time keeping up with the level and instant response and the knowledge that these AI agents have."
On the brand side of things, this translates to keeping online information and content as accurate and engaging as possible, said David Jordan, senior vice president and chief information security officer at IHG Hotels & Resorts. Jordan's role is expanding next month to include infrastructure engineering/operations and enterprise platform support as chief information officer and chief information security officer.
"We're very focused on promoting hotels in the right way, making sure that we've got the right content available through whatever channels the guests are coming to us, ensuring that the wording is right and the pictures are right and that we're capturing their imagination," Jordan said.
Not only do hoteliers need to think about this content side of things to make sure their hotels are appearing on these platforms, but also think about the user experience guests are having with this technology.
"I think this year in particular is going to be really interesting, because you have to think about what is the entry point for a guest engaging with one of the big hotel chains at this point," Jordan said. "How is ChatGPT and Gemini and other platforms going to change that level of interaction?"
The rise of the chatbot
Users are getting more comfortable with chatting with an AI agent, such as ChatGPT, and this raises expectations for guests interfacing with hotel chatbots. This technology also has improved, but guests might not have yet received that message, Sjolander said.
"Up until the last year probably, chatbots were really bad. People who tried to use them, ended up not being successful, so I think they have a kind of a bad reputation. So, getting over that, and people figuring out that they're really good I think will take some time," Sjolander said. "They're already making a big difference, and they're going to continue in 2026."
Chatbots, when deployed properly, can significantly optimize hotel operations, Jordan said. And, if powered by the right technology, guests can get their questions answered automatically.
"We've clearly taken advantage of AI in our chatbots and had a lot of success through that," he said. "When we're taking millions of calls every year, being able to push some of those to chatbot technology is the right thing to do for both parties. It reduces our human-to-human interaction, and therefore the workload there."
Robot takeover
Automation's convenience is manifesting in the physical world of hotels, too, and all three experts confirmed in 2026 and the further on there will be more robotic technology in hotels. Sjolander pointed to food delivery and security robots, but Oswald emphasized the opportunities for cleaning robots that might provide a better quality clean and decrease the physical toll on housekeepers.
"The process of vacuuming a room takes about five minutes for a housekeeper, but if you can drop off a little robotic vacuum cleaner during your cleaning process, and it's working alongside you while you continue to touch all the other areas of the room, then we gain efficiency," Oswald said.
Another opportunity for robots in hospitality is drink service at a hotel that might not be able to employ a full-time barista or bartender.
"I still believe hospitality is a people business and folks want to interface with guests, but there are opportunities for some of these select-service properties to provide more services around the clock with a robotic solution," Oswald said.
Jordan is already seeing robot technology in hotels internationally, and he recognizes the opportunities it presents. A robot can take up towels to a guest who needs them while the human employee stays at the front desk to help guests checking in.
"I think over time, you're going to see robots take on increasingly more complex tasks, and I suspect that we're going to see a demand for that outside of just the the the China market," he said.
Hotel tech's potential
Despite all the progress that new technology has made in the hotel industry, there's a lot more to come. A major obstacle Oswald said hospitality faces is "fractional tech stack."
"There are so many systems that don't talk to each other, and then you have to go get another technology solution to communicate in between," Oswald said. "As you look at 2026, we're seeing a little better collaboration overall, more direct integrations. And in some cases, we see a major brand consolidating many broken systems into one big system so that will always be synchronized."
Oswald said he also hopes to see some more development for internal AI use. So far, AI-powered business insights have been operating at "a junior varsity level," but he's challenging his tech vendors to find opportunities, especially in revenue management and forecasting.
"I hope that AI evolves enough into in 2026 to where we can get to that holy grail where it's forecasting, and it can translate known demand factors like office vacancy, major events, hiring patterns, holidays, etc., into an actual number," Oswald said. "Eventually it's going to translate into revenue managers being able to handle more properties right with less people."
There's plenty of potential for AI within hotel business operations, but no one has cracked the code yet, Sjolander said.
"I don't think we're at a point yet where hotel companies are talking about AI projects that have really dramatically shown improvement, but I think we're close to starting to see some of that at the corporate level, and I think we'll see more," he said.
- Limited value capture from AI adoption. AI use is expanding, but only 10 percent of organizations link their AI implementation to the broader business strategy; as a result, a gap persists between experimentation and scale, with just 23 percent reporting any economic value and 6 percent reporting significant impact.
- Foundational constraints in infrastructure and data. Persistent connectivity gaps between urban and rural areas, rising energy and computing demands coupled with the challenge of meeting those demands sustainably, and uneven data maturity limit the ability to deploy AI at scale.
- Talent and operating model gaps. Shortages of AI-ready talent, weak career pathways, and limited cross-functional collaboration could slow execution.
- A fragmented enabling environment. Inconsistent regulation, constrained access to capital, and limited regional coordination make it harder to attract investment and scale solutions across borders.
- Define implementable AI strategies focused on measurable outcomes in priority sectors where the region has competitive strengths.
- Build the infrastructure and data backbone required to support AI at scale, including sustainable energy sources, digital connectivity, computing capacity, and interoperable data foundations.
- Provide clear paths to develop talent at scale by strengthening education systems, expanding upskilling and reskilling programs, and creating clearer pathways for AI careers.
- Enable trust, capital, and coordination through clearer governance, mobilization of investment, and deeper regional collaboration across public and private sectors.
It’s that time of year again. Pundits are busy predicting whether hospitality transactions will rise or fall. No one knows for certain, though everyone seems to have an opinion.
I’m not a forecaster. I’m an operator with a bad habit of investing when I see a good situation. For the past several years, those situations have been scarce.
At a fundamental level, hospitality economics have been out of alignment: interest rates remain elevated, cap rates stubbornly low and RevPAR growth anemic. Those conditions made it difficult to justify new investment, let alone generate attractive risk-adjusted returns.
That said, I believe 2026 may mark an inflection point.
Over the past 18 months, rates have moved meaningfully off their peaks. Debt constants remain high, often in the 7% to 9% range depending on structure, but the door to positive leverage is beginning to reopen. The remaining challenge lies with sellers. Cap-rate expectations have yet to adjust meaningfully, reflecting a lingering attachment to the era of ultra-low interest rates. These two realities cannot coexist indefinitely. Transaction volume will remain constrained unless interest rates continue to ease or sellers accept modestly higher cap rates.
In other words, the math is improving but pricing hasn’t. Where does that leave investors?
Given today’s construction costs, which generally require RevPAR north of $150 to pencil, few markets can support new supply. As a result, there are three viable investment paths for private capital:
- Develop a well-located, soft-branded hotel capable of sustaining RevPAR above $250
- Reposition a neglected or obsolete hotel
- Reinvest in an existing asset to drive higher ADR and RevPAR
Each path requires a different kind of skill and a different tolerance for uncertainty.
Development: High Risk, High Reward
High-end, small-scale development is not for the faint of heart. It demands exceptional design, thoughtful branding and operational precision. When executed well, these projects can command meaningful rate premiums that offset higher development costs.
The challenge lies in finding the right location and calibrating the finish level precisely. Success requires a strong design team, a disciplined operator and, above all, patient capital.
Repositioning: Compelling, But Rare
Repositioning a “forgotten” hotel may be even more compelling, but it’s akin to hunting unicorns. Most markets have been thoroughly scrubbed for underutilized assets in acceptable locations. Still, when such opportunities do surface, they can generate significant value.
While the physical plant may require extensive reinvestment, you’re starting with two invaluable advantages: an existing structure and a viable location.
The common thread across both strategies is the need for realism. Too often, investors talk themselves into overly optimistic narratives assuming margin expansion where none exists or projecting rate growth unsupported by demand. While a well-run hotel can achieve RevPAR indices approaching 200, this performance is typically driven more by stronger occupancy than outsized ADR gains.
Reinvestment: The Most Reliable Path
Reinvesting in an existing asset offers the highest probability of success and the most attractive risk-adjusted returns. After years of deferred maintenance and operational shortcuts, many hotels are overdue for renewal, both physically and operationally.
Hotel performance isn’t limited by strategy; it’s limited by discipline. Too many owners underinvest in guestrooms, constrain payrolls and defer maintenance, slowly eroding both the guest experience and the asset’s long-term value.
Given the broader market constraints, reinvesting in existing assets is often the most compelling strategy. This advantage will only grow over time as demand continues to outpace supply and fewer hotels step forward to improve their product. The result will be a widening gap: Fewer well-run hotels serving an increasingly mobile and discerning guest base. Not tomorrow, but the demographic trajectory is clear.
Where To Begin
If 2026 is the year operational reinvestment becomes the most reliable strategy, it starts with clarity. Owners should begin by answering three questions:
- What experience are we trying to deliver and what will it cost to sustain it?
- Where has the asset quietly fallen behind the comp set?
- Do we have the discipline systems, and leadership to execute the plan—not just approve it?
A well-run hotel can generate strong returns for decades. A starved hotel, by contrast, has numbered days.
There is no single right investment strategy; only the one that aligns with your capabilities and discipline. Development and repositioning can deliver outsized returns, but are constrained by opportunity and execution risk. Reinvestment, while less glamorous, offers broader availability and more reliable outcomes.
The challenge is not finding assets; it’s finding teams willing to do the work.
HEI Hotels & Resorts has assumed management of a portfolio of four Marriott-branded hotels in the Lake Buena Vista area of Orlando, Fla. The properties are owned by L+R Hotels and include a total of 1,590 rooms across four hotels.
The portfolio consists of the Sheraton Orlando Lake Buena Vista Resort and three properties that make up the Marriott Orlando Village complex: Courtyard by Marriott, SpringHill Suites by Marriott and Fairfield Inn & Suites by Marriott.
The hotels are located in Lake Buena Vista, near Orlando’s Disney Theme Parks, Universal Theme Parks, Sea World and Universal Epic Universe. The Sheraton Resort is currently completing a renovation of guest rooms, public spaces and approximately 40,000 square feet of outdoor and indoor meeting space.
Together, the 490-room Sheraton Resort and the Marriott Village hotels with 1,100 rooms offer meeting space, food and beverage options, swimming pools, a spa and fitness centers.
“The relationship between HEI and L+R Hotels has expanded by identifying opportunites in key markets where we can effectively align our mutual objectives to maximize market positioning and deploy operating efficiencies and creative strategies”, said HEI Hotels & Resorts CEO and managing partner, Anthony Rutledge. “HEI’s management platform, track record of excellence and ability to complex multiple properties in order to execute an effective business plan will help to bolster performace and generate value for this portfolio of Orlando hotels.”
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