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Home»AI in Business»Report: AI is now a business imperative for hotels
AI in Business

Report: AI is now a business imperative for hotels

January 28, 2026003 Mins Read
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  • AI is now a business imperative, not just a concept, according to Wyndham.
  • Hoteliers are looking to established brands for advice and technology.
  • Trust in hospitality persists despite uncertainty.

ARTIFICIAL INTELLIGENCE HAS MOVED from concept to business imperative, with hotel owners turning to established brands for advice, technology and partnerships, according to research from Wyndham Hotels & Resorts. Additionally, confidence in the long-term prospects of the hospitality sector persists despite rising costs, economic uncertainty and operational complexity.

Second Annual Wyndham “Landlord Trends Report” found that the industry is at an AI inflection point: owners and developers are adopting AI but need guidance on converting early adoption into long-term returns.


“Artificial intelligence is rapidly reshaping hospitality, opening new opportunities while adding new levels of complexity,” said Scott Strickland, Wyndham’s chief commercial officer.

Almost all hotel owners, 98%, have started using AI, indicating widespread adoption in the hospitality industry. However, execution is uneven: less than a third, or 32%, say AI is integrated into most operations and almost three-quarters, or 73%, want to do more but don’t know where to start.

The findings are based on a survey of hundreds of hotel owners and developers across the United States, Canada and the Caribbean, representing several hotel brands and companies beyond Wyndham.

Among owners and developers using AI, common applications include operational efficiency at 64 percent, energy efficiency at 54 percent, and revenue optimization at 53 percent, all of which have a direct impact on profitability, the report said. For 2026, 61% of hoteliers want AI to play a greater role in construction planning, such as permitting and zoning, followed by revenue optimization by 30%.

As AI adoption increases and operations become more complex, owners and developers are turning to brands to help review, integrate and support technology solutions, according to the study. Nearly nine in ten hoteliers, or 89%, say working with a hotel brand is beneficial for AI adoption, and more than a third, or 34%, call it essential.

However, the main barriers to further adoption of AI include data privacy and security concerns (46%), investment costs (42%), and integration with existing systems (40%), Wyndham said. Views differ on AI-based decision making. Two in five, or 40%, are comfortable with AI making operational decisions without human oversight, while 57% require oversight.

A separate study from TakeUp found that approximately 90% of U.S. travelers use AI tools to plan or book travel, compare prices, review accommodation and make booking decisions.

The future calls us

Despite economic pressures, hoteliers are heading into 2026 with confidence in the industry’s outlook, consistent with the findings of Wyndham’s inaugural Owner Trends Report. Around 90 percent are optimistic for 2026 and 95 percent for the next five years.

Amit Sripathi, Wyndham’s chief development officer, said this year’s report once again shows hoteliers’ overwhelming confidence in the long-term resilience and proven ROI of our industry.

“The results also highlight improving market conditions, with 61% of hoteliers seeing easier financing and an almost even split between interest in new builds and conversion opportunities,” he said.

Nearly eight in ten hoteliers, or 79 percent, plan to expand their portfolio over the next five years, consistent with last year’s report. Around 97% say they would be willing to join or switch brands if the right opportunity presents itself. About two-thirds of hoteliers, or 65 percent, say a strong loyalty program is important to their success. The main obstacles include operating costs, talent shortages and competition.

For 2026, 24% of hoteliers plan to prioritize staff, followed by property improvements at 20%, sales and marketing at 20%, technology at 19%, and amenities at 17%, indicating that owners continue to balance service and guest experience with operations and marketing.

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