Phoenix, October 21, 2025
News Summary
Executives from major hotel brands gathered in Phoenix to discuss growth strategies amid economic uncertainties. The conference emphasized ‘momentum’ as the key theme, showcasing the industry’s resilience and adaptability. With an optimistic outlook for 2026, leaders from companies like Hilton, Hyatt, and Choice Hotels highlighted opportunities despite current construction cost challenges, promising growth in regions benefiting from infrastructure investments and population growth.
Phoenix Hosts Lodging Conference Emphasizing Growth Opportunities
Executives from leading hotel brands converged in Phoenix to discuss strategies for growth amid the ongoing economic challenges impacting the industry. As hotel development executives navigate high-interest rates and economic uncertainties, the pressing theme of “momentum” was brought to the forefront of the conference, highlighting the industry’s resilience and adaptability.
Despite a high-cost economic cycle resulting in fewer hotel deals, executives from major companies including Hilton, Wyndham, IHG, Hyatt, and Choice Hotels are maintaining a focus on growth opportunities. Dan Hansen, head of development for Hyatt in the Americas, indicated that the hotel industry is strategizing to overcome the obstacles posed by the current economic landscape, with optimism directed towards the year 2026.
David Pepper, chief development officer for Choice Hotels, acknowledged that while initial optimism in hotel development has encountered delays due to current economic conditions, there are still promising growth avenues. Current trends show a decrease in construction costs of approximately 5% to 10%, largely attributable to falling labor costs, which is encouraging for potential developers.
Emerging Markets and Opportunities
Executives discussed promising U.S. hotel development markets, particularly those benefiting from significant infrastructure investments, such as data centers, chip factories, and battery plants. Wyndham’s Amit Sripathi emphasized that these industries foster job growth, contributing to an influx of hotel demand. Investment in non-residential fixed assets is historically tied to an increase in room-night demand, as highlighted by Hilton’s Christian Charnaux.
As the industry adapts, regions experiencing population growth due to tax-friendly policies are seeing increased interest. States like Tennessee, Texas, and Florida are witnessing a rise in factory constructions, driving hotel demand. Furthermore, border areas in the U.S., especially southern Texas, Arizona, and California, are experiencing heightened demand, reflecting a trend towards domestic travel.
Revenue Growth and Future Development
Choice Hotels reported significant growth in Canada, showcasing a shift in travel patterns and a growing inclination towards domestic tourism. IHG’s Kevin Schramm pointed out potential buying opportunities in markets such as Austin and Nashville, making a case for vigilance amid fluctuations in supply and demand. Hotel executives remain cautiously optimistic about recovering and seizing upcoming opportunities leading into 2026.
While executive discussions encouraged resilience and adaptability, they also focused on the expansion of luxury and lifestyle offerings, including the upcoming Kimpton Miralina Resort & Villas in Paradise Valley. The U.S. Hotel Construction Pipeline Trend Report underscores Dallas as the leading market for hotel construction, with Atlanta, Nashville, and Phoenix also showing marked growth.
Outlook for New Openings
As of Q1 2025, the projections for new hotel openings in 2026 indicate Dallas will continue to lead the construction trend, with Atlanta and Phoenix following closely behind. Several brands are set to finalize projects in Metro Phoenix in the coming months, reflecting a robust pipeline of upcoming hotel developments.
Overall, hotel executives emphasize that the industry is on the brink of stabilization with expectations of decreased interest rates, paving the way for renewed investment and development activity. With a proactive approach towards opportunities, the discussions at the Lodging Conference underscore a commitment to advancing the hospitality sector despite economic challenges.
FAQ
What was the main theme of the Lodging Conference in Phoenix?
The key theme of the discussion was “momentum,” which emphasized growth opportunities despite the high-cost economic cycle.
What are the current trends in hotel construction costs?
Construction costs are reported to be decreasing by 5% to 10%, primarily influenced by labor costs.
Which states are seeing increased interest in hotel development?
Growing interest is noted in tax-free states, such as Tennessee, Texas, and Florida, where factory builds are on the rise.
What markets are being highlighted for future hotel opportunities?
Potential buying opportunities are noted in markets like Austin and Nashville due to fluctuations in supply and demand.
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Additional Resources
- Hotel Dive: IHG Kimpton Resort Opening in Phoenix
- AZ Central: Hotel Development Sought for Downtown Phoenix
- Hotel Dive: Hotel Trends from the Lodging Conference 2025
- Rebusiness Online: Phoenix Development Begins Construction on Dual-Branded Hotel
- Hotel News Resource: Hotel Development Updates
- Wikipedia: Hotel Industry
- Google Search: Hotel Development Trends
- Google Scholar: Hotel Construction Trends
- Encyclopedia Britannica: Hotel Management
- Google News: Hotel Industry News
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