Phoenix, October 21, 2025
News Summary
The Lodging Conference in Phoenix gathered hospitality professionals to discuss industry challenges and trends, highlighting tariff effects, economic uncertainties, and emerging opportunities. Attendees noted a cautious optimism amid increasing operational costs and the potential for AI to enhance guest experiences. Executives shared insights on the need for swift technological adoption and the impact of rising expenses on hotel margins. Several brands introduced new offerings focused on unique experiences, aiming to adapt to evolving traveler preferences.
Phoenix – The Lodging Conference took place last week in Phoenix, where hospitality professionals provided insights on industry challenges and trends. Executives discussed tariff and economic challenges impacting growth projections for the hotel industry. Overall, attendees were cautiously optimistic about the state of the industry, though their sentiment was not as enthusiastic as last year’s conference. Economic uncertainty has clouded growth forecasts for hotel portfolios by the end of 2024.
Despite these challenges, opportunities for portfolio expansion and performance gains were emerging. Key trends identified included a focus on bespoke experiences for luxury travelers and the potential revenue boost from artificial intelligence (AI) if adopted swiftly. Many hotel executives speculated that 2025’s toughest times might be behind them; however, tariff headwinds remain an ongoing concern.
Liam Brown, Marriott International’s Group President for the U.S. and Canada, highlighted that expenditures on labor, insurance, real estate, and taxes are straining margins. Most U.S. hotel segments reported gross operating profit losses year-over-year as of July, primarily due to rising operational costs. David Pepper, Chief Development Officer at Choice Hotels International, noted that the hotel industry is acclimating to the impact of tariffs.
The Federal Reserve recently cut its benchmark interest rate by 25 basis points, with expectations of two more cuts by the end of the year. Some hotel developers are contemplating new builds, anticipating a market recovery in two years aligned with favorable interest rates. Members of the Asian American Hotel Owners Association are exploring opportunities to acquire and reposition existing hotels.
Hilton has launched a new upscale collection brand, Outset, targeting boutique hotels with high-end designs. Marriott and Wyndham have also introduced new brands focusing on lifestyle offerings that are popular with travelers seeking unique experiences. The demand for personalized and immersive experiences is anticipated to rise as traveler preferences continue to evolve.
Ayesha Molino, president and COO of MGM Resorts International, advocated for the transformative potential of AI in enhancing guest experiences. Industry leaders expressed the need for swift AI technology adoption to redefine customer interactions and services. Critics pointed out that the hospitality sector has lagged in technology adoption, indicating a need for standardization and faster implementation. Greg Juceam, President and CEO of Extended Stay America, emphasized AI’s potential to transform hotel searches and operational efficiencies.
The report also noted ongoing economic challenges including weakened hotel revenues and increased operating costs. The Lodging Conference highlighted issues like operations, franchising, finance, technology, and sustainability as key discussion points. This event is seen as a vital networking opportunity to drive collaboration and deal-making in the hotel industry. The Phoenix setting for the conference was designed to encourage interaction among attendees while providing a desirable travel destination.
Frequently Asked Questions
Where did the Lodging Conference take place?
The Lodging Conference took place last week in Phoenix.
What key challenges were discussed at the conference?
Executives discussed tariff and economic challenges impacting growth projections for the hotel industry, along with rising operational costs contributing to gross operating profit losses.
What trends were identified during the conference?
Key trends included a focus on bespoke experiences for luxury travelers and the potential revenue boost from artificial intelligence (AI) if adopted quickly.
How are hotel developers viewing the future market?
Some hotel developers are contemplating new builds, anticipating market recovery in two years aligned with favorable interest rates.
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Additional Resources
- Hotel Dive: Hotel Trends from Lodging Conference 2025
- Travel and Tour World: Marriott, Hilton, IHG, Accor, and Hyatt at Lodging Conference 2025
- CoStar: JLL Exec Sees Increased Hotel Transactions
- Hotel Dive: Hotel Investment Trends for 2025
- Asian Hospitality: US Hotel Pipeline Q1 2025
- Wikipedia: Hotel Industry
- Google Search: Hotel Investment Trends
- Google Scholar: Hospitality Industry Trends
- Encyclopedia Britannica: Hotel Industry
- Google News: Hotel Industry News
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