The Lodging Conference 2025 Recap

To keep our finger on the pulse of the hotel industry, Innvision once again attended The Lodging Conference in Phoenix during early October. Through many program sessions and conversations with hotel owners, management companies, brand executives, general contractors, architects, FF&E manufacturers, brokers, and others, Innvision’s attendees walked away with the most up-to-date information on what’s happening in hotel markets across the US and what to expect next year.

Experts on the industry and the economy shared their views, including frequent use of the words “uncertainty” and “challenging” when describing 2025 hotel transactions and profitability. However, panelists at the show were cautiously optimistic for2026 and not surprisingly, bullish on the industry and the US economy longer-term.

Our Takeaways from The Lodging Conference:

•Higher-end hotels are outperforming the other segments, especially economy to midscale, relying on well-heeled travelers who haven’t been affected as much by economic volatility.

• Lifestyle brands are the right product at the right time as more guests are looking for properties that possess a regional flair and tell a story that connects them to their locales. With many properties facing upcoming debt maturities and loan renewals at higher interest rates, franchisors are responding with additional new lifestyle and soft brands for conversions.

• Glamping is getting more traction, with Marriott making bold moves into the space with the launch of their Outdoor Collection. Demand for lodging and experiences where guests connect with nature is growing and opening a whole new world of opportunity across the country for hoteliers and travelers.

• There is increased focus on hotel conversions and renovations heading into 2026, where undertaking strategic PIPs (Property Improvement Plans) can help reposition assets into a stronger market environment.

• Extended stay travel is up from prior years. One estimate said that more than ⅓ of new hotel construction is extended stay brands.

• Tariffs continued to be a leading topic, with hotel owners, developers, and procurement providers leaning towards choosing more domestic production of FF&E or from countries other than China.

• Hotel labor continues to be a challenge, with operators trying to find and keep employees while increasing their use of technology. Experts encouraged hoteliers to train employees/new hires to view hospitality as a career and to find ways to offer them opportunities for growth.

• AI is real and here to stay, so embrace it! Hoteliers can use AI to improve marketing, technology, budgeting, back-of-house, and scheduling, with both cost savings and revenue generation potential. Integrating this automation will free up staff members to focus on better serving and connecting with guests to provide a more satisfying experience.

• Although year-to-date ADR and occupancy are currently trending flat or slightly negative, with lower-than-average new supply coming into the market, hotels should see RevPAR gains in the years ahead as business and international travel rebound.

• With inbound international travel down, there was talk of the need to promote brand USA to international travelers and to have cooperation and support from the federal level.

• Economist Bernard Baumohl noted that inflation is increasing, as is the unemployment rate, but he thinks the likelihood of recession is low. He expects the economy to grow at 2.1% in 2025 and 2.4% next year thanks to tax credits and cuts, along with declining interest rates.

The Lodging Conference confirmed that many hotel renovations and conversions are likely to take place over the next two years and that there’s a real opportunity for hoteliers who will have a refreshed property with less new competition in the market. With upcoming renovations and conversions, you can benefit greatly by partnering with an experienced FF&E provider who can help you minimize the operational disruption during a project and get rooms and floors back open for guests as soon as possible.

When working with Innvision, our extremely hands-on approach begins in the earliest stages when we’ll collaborate with you to build a plan for exactly when and how to renovate. The resulting timeline will incorporate all of the FF&E items, necessary approvals, and their associated lead times within a project to help you capture as much revenue as possible during and after your renovation. It’s never too early to start planning, so contact us to begin a conversation with Innvision about how we can help your investment in your next hotel project.

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