Why Fast Casual Brand Value Will Be Rising

Presently, LLMs do not have rich images and content, such as photos of the spaces and facilities, that consumers typically demand when making hotel reservations, Kletzel said., on the other hand, has quickly broadened in recent years.

Beyond the guest experience, agentic commerce has the potential to move the method hotel companies' customer support teams operate and are structured, Klein said. "Will there be some corporations that discover the chance to lower staff? Yes," Klein stated. Brand names that think in fantastic consumer experience and service will discover that AI could help their agents "get involved in more complex, more business-critical discussions that help grow the service." In 2025, Hyatt reduced personnel by roughly 30% across its guest services and support teams "in reaction to the evolving nature of visitor inquiries and shifting organization needs," per the business.

Freddy's Frozen Custard & Steakburgers

This year, numerous collection brands that launched in 2025 will continue to expand. Additional brand-new brands and partnerships, particularly in the lifestyle section, will likely debut too, according to hospitality specialists. In 2025, Marriott launched 2 collection brands: Series by Marriott, playing in the high end space in the U.S., and Outdoor Collection, solely focused on outside accommodations in locations near national parks, deserts, ski locations and shorelines.

Marriott's Outdoor Collection offers unique accommodations in locations near nationwide parks, deserts, ski areas and coastlines.

Evaluating Leading Investment Models for 2026

Hilton's Start Collection, specifically, has more than 60 hotels in the works throughout the U.S. and Canada, Kevin Osterhaus, president of way of life brand names at Hilton, informed Hotel Dive. Outset is currently checking out possible new places in San Diego, Los Angeles and Virginia Beach, Virginia, in addition to markets in New Mexico and Colorado in 2026, Osterhaus stated.

"Collection brand names are appealing because they use the finest of both worlds: Owners keep the unique DNA of their home, while unlocking global distribution, profits management, commitment and assistance. Kevin Osterhaus President of way of life brand names at Hilton From the visitor perspective, independent store hotels are desirable since they use genuine experiences, Gabriel Perez, primary operating officer of lodging at The Indigo Roadway Hospitality Group, informed Hotel Dive.

As for why the hotel business are going after independents in the lifestyle segment, "it's not about the visitors. It has to do with producing sub-brands within their own brands to please investors' requirements and to please owner and designers' goals," Perez said. JLL's Davis echoed that belief, informing Hotel Dive that the market is at the point of, if not past the point of, brand name saturation, as "public business [are] under a tremendous quantity of pressure for net system development." This, in turn, puts much more pressure on hotel companies "to produce brands, micro brands and subsets of brands in order to expand their footprint of existing assets," Davis stated.

Hilton's collection brands' "unique positioning and storytelling continue to drive interest throughout chain scales," Osterhaus stated. Series and Outdoor Collection, both conversion-friendly offerings, pertain to an ownership community and designers who "are constantly looking for ways to grow, and conversions represent a course for development," Molinary stated.

Freddy's Frozen Custard & Steakburgers

According to Osterhaus, "As long as brand names are purpose-built and distinct in experience and cost point, they add clearness instead of confusion." This year, Hilton prepares to remain "extremely active in the lifestyle space through strategic partnerships, brand-new finalizings and continuous development of our current brands," Osterhaus said. Molinary expects Marriott competitors to begin offering some kind of branding service in the outdoor area, specifically, as "it's an actually popular and growing space" with "a lot of interest." Another growing space is the luxury segment.

Strategic Tips for Restaurant Brand Scaling

That trend is expected to continue in 2026 as luxury consumers drive travel spending and hotel reservations amid a wealth bifurcation at play in the market. "High-net-worth travelers are expected to remain among the most trusted chauffeurs of worldwide travel costs next year," Giray Boran, managing director of BLG Capital, informed Hotel Dive.