Why Fast Casual Brand Share Is Rising

Currently, LLMs do not have rich images and content, such as images of the spaces and features, that customers generally require when making hotel reservations, Kletzel stated., meanwhile, has quickly broadened in recent years.

Beyond the visitor experience, agentic commerce has the possible to move the method hotel companies' customer care groups run and are structured, Klein stated. "Will there be some corporations that discover the opportunity to lower personnel? Yes," Klein stated. Brand names that believe in terrific consumer experience and service will find out that AI might help their agents "get included in more intricate, more business-critical discussions that help grow the business." In 2025, Hyatt minimized personnel by approximately 30% throughout its visitor services and support teams "in response to the developing nature of guest queries and moving business requirements," per the business.

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This year, numerous collection brands that released in 2025 will continue to expand. Additional new brand names and collaborations, particularly in the lifestyle section, will likely debut as well, according to hospitality experts. In 2025, Marriott introduced 2 collection brand names: Series by Marriott, playing in the high end area in the U.S., and Outdoor Collection, specifically concentrated on outside accommodations in destinations near nationwide parks, deserts, ski locations and shorelines.

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

Top Profitable Franchise Prospects for the Future

Hilton's Outset Collection, particularly, has more than 60 hotels in the works across the U.S. and Canada, Kevin Osterhaus, president of way of life brands at Hilton, told Hotel Dive. Beginning is currently exploring possible new locations in San Diego, Los Angeles and Virginia Beach, Virginia, as well as markets in New Mexico and Colorado in 2026, Osterhaus stated.

"Collection brands are appealing due to the fact that they offer the very best of both worlds: Owners keep the special DNA of their home, while opening international distribution, revenue management, loyalty and support. Visitors get one-of-a-kind stays with the reassurance of a trusted brand." "As long as brand names are purpose-built and distinct in experience and rate point, they include clearness rather than confusion." Kevin Osterhaus President of way of life brands at Hilton From the guest perspective, independent store hotels are preferable due to the fact that they provide genuine experiences, Gabriel Perez, primary running officer of lodging at The Indigo Road Hospitality Group, informed Hotel Dive.

As for why the hotel companies are chasing independents in the lifestyle segment, "it's not about the visitors. It has to do with developing sub-brands within their own brand names to satisfy financiers' needs and to satisfy owner and designers' goals," Perez stated. JLL's Davis echoed that sentiment, telling Hotel Dive that the market is at the point of, if not past the point of, brand name saturation, as "public business [are] under an incredible amount of pressure for net system growth." This, in turn, puts much more pressure on hotel companies "to create brands, micro brands and subsets of brands in order to broaden their footprint of existing possessions," Davis stated.

Hilton's collection brands' "distinct positioning and storytelling continue to drive interest throughout chain scales," Osterhaus stated. According to Bobby Molinary, Marriott's primary advancement officer for select brands, interest in Marriott's new collection brand names comes amidst a challenging high-cost-of-construction environment that has actually made it "significantly challenging to build brand-new hotels." Series and Outdoor Collection, both conversion-friendly offerings, pertain to an ownership neighborhood and designers who "are continuously searching for methods to grow, and conversions represent a path for growth," Molinary said.

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This year, Hilton prepares to remain "really active in the lifestyle area through tactical partnerships, new finalizings and ongoing development of our existing brands," Osterhaus said. Another growing space is the high-end sector.

Major Regional Shifts in Brand Development

That pattern is anticipated to continue in 2026 as high-end customers drive travel costs and hotel reservations amidst a wealth bifurcation at play in the industry. "High-net-worth travelers are anticipated to remain one of the most dependable drivers of international travel costs next year," Giray Boran, managing director of BLG Capital, told Hotel Dive.