Marriott CEO message on ICE is clear: prioritize safety of guests and staff, first
LOS ANGELES — The Department of Homeland Security’s presence in Minneapolis reached the hotel industry’s doorstep when a Hampton Inn outside the city refused to accept the bookings of Immigration and Customs Enforcement agents three weeks ago. Hilton subsequently booted the hotel from its system, but the event made national headlines. In the aftermath, other hotel companies have been pressed on room bookings made by ICE agents.
It was a question Tony Capuano, president & CEO of Marriott International, was asked during a media breakfast at the Americas Lodging Investment Summit, here at The Ritz-Carlton, Los Angeles at L.A. Live. More specific, how to assuage any fear from front-line employees.
“We prioritize the safety and security of our associates and our guests, and after rigorous evaluation, if we don’t believe there is meaningful risk to that, and we’re being compliant with law, we have a view of welcoming all,” Capuano said. “It’s a bad place for us to be to say, ‘Well, I don’t like that group or that person’s politics, so they’re not welcome, but I like this person’s views or politics, therefore, they are welcome.”
Asked if there was any inter-organizational messaging by Marriott to associates, Capuano said many general managers are reassuring and comforting associates—”that we’re going to stand by them.” He added: “It would be naive to suggest there’s not concern out there, and that concern is ratcheting up given recent events.”
Capuano said that Marriott-branded hotels, both franchises and managed, maintain rigorous screening processes to ensure that documented workers are working in its hotels. According to the Center for Migration Studies, around 12% of the total U.S. undocumented workforce is employed in the accommodations and food services sector, which includes hotels.
Beyond Politics
It’s not all politics for Marriott—which is the way it would prefer. The Bethesda, Md.-based hotel company with more than 30 brands grew net rooms by more than 4.3% during 2025, adding over 700 properties and nearly 100,000 rooms to its system. More than 630 of those properties were added through organic deals, representing over 89,000 rooms.
Conversions continued to account for a significant portion of growth, with Marriott signing nearly 400 conversion deals encompassing more than 50,800 rooms. Capuano said the trend would continue. “We are better positioned than we’ve ever been to continue to drive conversions in terms of the cross-quality tiers of conversion-friendly brands in the portfolio.”
Interest rates and construction costs are only two variables that drive development (or cause the dearth of it). For Marriott, its Bonvoy loyalty program galvanizes it and dictates its growth strategy, Capuano said. “We built this extraordinary travel ecosystem, and what we want to do is for our members and our guests, for any place they want to travel, for any trip purpose, we want to make sure they can find a satisfiable or an appropriate solution within that Bonvoy ecosystem. That’s how we think about growing the portfolio.”
Last year also saw Marriott flex its acquisition muscle with a deal for citizenM that added 37 hotels to the portfolio. Marriott was able to do a full integration of them in four months. Capuano underscored citizenM’s technology as one of it’s biggest selling points. “citizen M figured it out. They have a very efficient, very effective check-in kiosk, for example,” Capuano said. It also launched the soft brand Series by Marriott, which opened dozens of hotels across India. Marriott has signed 113 agreements in the U.S. and Canada for it.
Evidence of a K-shaped economy continues to drive spend in the hotel industry, benefitting luxury hotels at the cost of lower chain scales. “Luxury has really been a bright, shining star,” Capuano said. Marriott signed 114 new luxury hotels in 2025 and finished the year with a luxury pipeline of just under 300 projects representing about 60,000 rooms.
While luxury has been a catalyst for performance, some markets have seen attrition. Consider the Sheraton Inner Harbor Hotel in Baltimore, which closed in December. Capuano placed blame for the closure on factors outside its direct control; namely, inattention to the city’s convention center that “needed to be renovated,” Capuano said, alluding to a chicken and egg scenario. “You saw other competitive regional destinations expanding and renovating their centers that, in turn, was driving demand. The city of Baltimore said we need to make sure we have the right hotel base before we’ll commit to investing in the center.”
Capuano said he had discussions with Baltimore’s Mayor, Brandon Scott, to try and find a solution, but to no avail. “You’ve got to have a competitive convention center to support hotels to that scale. The city’s not solved it.
Hilton expanded its global footprint significantly in 2025, adding nearly 800 hotels and 100,000 rooms to its global portfolio and achieving full-year net unit growth of 6.7%. Expansion was supported by strong owner demand, conversion activity and continued interest in the company’s luxury and lifestyle brands.
During the year, Hilton signed more than 1,000 new hotels representing nearly 140,000 rooms. The company ended 2025 with more than 3,700 hotels under development, totaling over 520,000 rooms worldwide. Conversions accounted for nearly 40% of openings in 2025. Nearly 100,000 rooms began construction during the year—the highest number of organic starts in Hilton’s history—with roughly one in five hotel rooms currently under construction globally expected to join the Hilton system.
“Hilton’s record growth in 2025 reflects the power of our brands, the dedication of our team, and the trust of our owners and guests,” said Chris Nassetta, president and CEO, Hilton. “We continue to strengthen our network effect and strategically expand into destinations around the world. We’re also adding new brands, with more to come in 2026, which is a testament to our commitment to innovate and meet evolving guest demand. With a robust pipeline and industry-leading commercial engines, we expect net unit growth of 6–7% in 2026, positioning Hilton to lead the industry in the years ahead.”
The company launched two new brands: Apartment Collection by Hilton and Outset Collection by Hilton. Apartment Collection offers furnished apartment-style accommodations and will become available for booking through Hilton channels in the first half of 2026. This builds on Hilton’s existing inventory of about 10,000 apartment-style units, with up to 3,000 additional units added through a partnership with Placemakr. Outset Collection by Hilton launched in October and is a conversion-focused brand designed for independent hotels. More than 60 hotels are already under development, with long-term potential exceeding 500 hotels in the U.S. and Canada.
Hilton also recorded growth in the luxury and lifestyle segment. The company reopened Waldorf Astoria N.Y., opened the first Waldorf Astoria hotels in Finland, Japan and Costa Rica, and signed NoMad Hotels in Detroit and Singapore. Lifestyle brands expanded into new countries, including the first Canopy by Hilton hotel in South Africa and the first Curio Collection by Hilton hotel in Thailand. Over 1,000 luxury and lifestyle hotels now operate globally, with more than 200 new properties added in 2025. Hilton surpassed 9,000 operating hotels worldwide, operating in 143 countries and territories, with openings in Rwanda and Pakistan.
“Hilton is committed to being the preferred partner for owners globally, which is clearly demonstrated by our growth in 2025,” said Christian Charnaux, EVP and CDO, Hilton. “Our brands deliver industry-leading returns for owners over the long term, with market share premiums driving top line and our system scale maximizing margins and ultimately cash-on-cash returns. This results in our record 520,000 rooms under development, and our 20% share of all rooms under construction globally versus our current global market share of 5%. The setup to further grow our portfolio is tremendous.”
New French Train Fare Bans Children, Stirs Complaints
According to Q4 data from Lodging Econometrics, renovations and conversions hit a new record with 2,118 projects and 278,628 rooms.
NATIONAL REPORT — U.S. hotel construction remained steady in Q4 with a total pipeline of 6,146 projects and 720,089 rooms, according to Lodging Econometrics, with record growth in conversions and renovations driving much of that activity.
Projects currently under construction total 1,088 projects and 134,380 rooms. Looking ahead, 2,175 projects and 253,750 rooms are scheduled to start construction within the next 12 months. Projects in the early planning stage still account for the majority of the active pipeline, with 2,883 projects and 331,959 rooms as of Q4.
Brand conversions in the pipeline experienced notable growth in Q4, reaching a record high of 1,497 projects and 148,981 rooms. This marks a 12% year-over-year increase in projects and 16% YOY growth in rooms. Hotel renovations in the U.S. remained relatively unchanged, totaling 621 projects and 129,647 rooms, but combined, renovation and conversion projects represent a significant portion of hotel development activity, with a new record high of 2,118 projects and 278,628 rooms.
Upper midscale hotels continue to lead the pipeline, accounting for 2,275 projects and 218,526 rooms, while upscale hotels follow with 1,336 projects and 167,316 rooms. The midscale segment recorded 956 projects and 80,260 rooms. The luxury segment now sits at a record 95 projects and 22,045 rooms.
In Q4, 285 projects and 32,358 rooms new projects were announced. Construction starts throughout the year stood at 668 projects and 78,530 rooms, while 148 projects and 17,623 rooms broke ground in Q4.
New hotel openings in 2025 reached 640 with 74,079 rooms in the U.S., expanding the nation’s hotel supply by 1.3% at year-end. Looking ahead, Lodging Econometrics forecasts continued growth, with 708 new hotels and 80,034 rooms expected to open in 2026, representing a 1.4% increase in supply. Furthermore, LE analysts anticipate accelerated growth in new hotel openings again in 2027, with 824 hotels and 88,095 rooms scheduled to open by year-end, resulting in a 1.5% increase.
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