Hotel Owners at an AI Crossroads as Confidence and Expansion Plans Hold Firm, Wyndham Report Finds
Nearly all hoteliers are using AI, but many say they need clearer guidance to unlock long-term returns
Hotel owners are entering 2026 at a pivotal moment. While confidence in growth remains strong, a new report shows the industry has reached a turning point in Hotel AI adoption 2026—with widespread implementation underway but uncertainty lingering around how to scale it effectively.
According to Wyndham Hotels & Resorts’ second annual Owner Trends Report, 98% of hotel owners and developers say they have begun incorporating artificial intelligence into their operations. However, only 32% report that AI is embedded across most aspects of their business, and 73% admit they want to do more but feel overwhelmed about where to start.
The findings are based on a survey of 325 hotel owners and property developers across the U.S., Canada and the Caribbean, representing multiple brands and companies.
AI Moves From Experimentation to Execution
Artificial intelligence is no longer a pilot program—it is operational.
Among those using AI, key applications include:
- Operational efficiency (64%)
- Energy efficiency (54%)
- Revenue optimization (53%)
These areas directly influence margins, especially as owners face rising costs, labor shortages and increasing operational complexity.
Looking ahead to 2026, 61% of respondents want AI to play a larger role in construction planning, including zoning and permitting support. Another 30% plan to expand AI use in revenue management.
Still, barriers remain. The top concerns preventing broader adoption include:
- Data privacy and security (46%)
- Investment costs (42%)
- Integration with legacy systems (40%)
When it comes to decision-making, human oversight remains critical. Only 40% of hoteliers are comfortable allowing AI to make operational decisions independently, while 57% require human review.
Brands Seen as Critical AI Partners
As AI tools multiply, hotel brands are increasingly viewed as strategic technology partners.
Nearly 89% of hoteliers say working with a brand is beneficial when incorporating AI, and 34% consider it essential.
Wyndham, which reports investing more than $375 million in technology since 2018, highlighted its Wyndham Connect platform and Wyndham Connect PLUS solution. More than 5,000 hotels have adopted the platform, logging nearly 12 million guest interactions. Hotels using the PLUS version report nearly 200 basis points improvement in direct voice conversion and 400 basis points improvement in overall guest satisfaction.
Growth Outlook Remains Strong
Beyond AI, the report underscores continued optimism across the lodging sector.
- 90% of hoteliers are optimistic about 2026.
- 95% are optimistic about the next five years.
- 79% plan to expand their portfolios within five years.
- 97% are open to joining or switching brands for the right opportunity.
Additionally, 61% report that financing conditions have improved compared to prior periods.
Loyalty programs remain a key strategic priority, with 65% of hoteliers citing strong loyalty platforms as critical to long-term success.
Investment Priorities for 2026
Despite economic pressures, hotel owners continue investing in both technology and guest experience:
- Increased staffing (24%)
- Property improvements (20%)
- Sales and marketing (20%)
- Technology upgrades (19%)
- Enhanced amenities (17%)
The results suggest that while Hotel AI adoption 2026 is reshaping operations, owners are balancing automation with human-centric service and brand-driven growth strategies.
Industry at an Inflection Point
The hospitality sector appears to be transitioning from AI experimentation to scaled implementation. Owners are confident in the industry’s resilience but are seeking clearer frameworks to translate AI investments into measurable ROI.
As brands expand integrated ecosystems combining marketing, distribution, revenue management and AI-powered guest engagement, the next phase of adoption will likely determine competitive advantage across the economy and midscale segments.
With expansion plans holding steady and technology investments accelerating, 2026 may mark the year when AI moves from promise to performance in hospitality.
