Last week’s Lodging Conference in Phoenix brought together over 2500 hotel owners, operators, developers, and other professionals from all across the United States. With three quarters of the year under our belt, it was a timely opportunity for experts to weigh in on where the industry has been and where it’s going. Here Innvision’s executive team provides a summary of the conference’s most salient points.

The headline thus far in 2026 is that despite economic headwinds from the Iran War and interest rate volatility, demand-driven KPIs such as revenue per available room (RevPAR), average daily rate (ADR), and occupancy have all been higher than expected. It is clear that FIFA World Cup matches across the US boosted tourism and benefited hotels this past summer in a meaningful way. However, household spending on hotels and motels hit a record high in August (after World Cup) and YTD RevPAR growth is the highest it has been since 2023, suggesting that this year’s improvement is more than just a soccer story.

More takeaways from The Lodging Conference panels and speakers:

·      Economy: Bernie Baumohl projected that despite risks, the strong US economy should continue and we should see GDP growth of 2%or more in 2026, 2027, and 2028. US consumers have been resilient despite inflation from higher fuel pricing and tariffs, but consumer spending will slow into 2028. Inflation will slow also, though Baumohl expects the Fed to raise interest rates by 100 basis points by late 2027.

·      Hotel Industry: Baumohl characterized the US lodging industry as having reinvented itself, growing faster than the US economy and less sensitive to shocks. ADR and occupancy have shown real momentum and are predicted to grow through 2028.

·      Tech & Costs: New technologies such AI and robots have not lowered hotel operating costs much yet, which continue to grow and put pressure on profit margins. Re-imagining today’s hotel staffing model with new technology, without losing the human touch, has the potential to improve service in hotels while relieving that pressure.

·      AI: AI is helping brands, developers, and buyers find and evaluate opportunities more efficiently than ever before. AI isalso changing the way travelers plan and book trips, which will affect existingbrand and OTA distribution channels.

·      Hotel Valuations: Values have fallen over the past few years, making now a particularly attractive time to buy a hotel. Buyer and seller expectations also seem to be more closely aligned than in the past few years.

·      Supply Growth: Hotel supply growth over the past 25 years has averaged 1.7%, but over the past couple years, that has dropped to approximately .5%. The number of projects in the new constructionpipeline has fallen since the Iran War. Fewer new hotel rooms coming online now and for the foreseeable future will help the supply and demand fundamentals of existing properties.

·      Cost-Effective PIPs: Brands are working with owners to lower the spend involved with required property improvements, which can be based on a hotel’s performance and guest reviews. Hoteliers whoplan projects well in advance with their architects, GCs, designers, and procurement providers have more options and enjoy better project outcomes at reduced prices.

·      Longer-Term: Corporate and group travel continue to improve. Generational shifts and demographic trends should help the growth of leisure travel over the longer term.

Final Thoughts

The Lodging Conference was a moment to celebrate progress in 2026, acknowledge the challenges that rising costs still present, and consider how to leverage current and future technology to improve service and profitability.

With our very hands-on approach to design and procurement, Innvision can help you think about how to build or renovate smarter within your upcoming hotel project. Contact us to begin a conversation and explore your options.