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Report: Hotels use new tools to boost staffing

The industry will add 14,000 employees in 2025, but employee numbers will remain below 2019 levels

AHLA’s 2025 report on tech adoption to address staffing shortages in the industry

Hotels are leveraging new tools and technologies to recruit and retain employees as the industry works toward pre-pandemic staffing levels, according to a recent American Hotel & Lodging Association report.

Hotels Leverage Tech to Address Staffing Challenges in 2025

HOTELS ARE USING new tools and technologies to recruit and retain employees as the industry works toward pre-pandemic staffing levels, according to a recent American Hotel & Lodging Association report. The association, citing data from Oxford Economics and STR/CoStar, projects the hotel industry will add more than 14,000 employees in 2025, but employee numbers will remain below 2019 levels.

AHLA’s 2025 State of the Industry Report predicts hotel employment will rise year-over-year in most states, though only Montana and Washington, D.C., will exceed 2019 staffing levels.


“The hospitality sector has made strides in rebuilding its workforce and creating opportunities for career advancement, but staffing shortages remain a challenge,” said Rosanna Maietta, AHLA president and CEO. “The good news is that hotels have never been more competitive, offering strong wages, expanded benefits, and a focus on employee satisfaction.”

The report’s contributors—American Express, Ecolab, Encore, Hireology, Oracle and Towne Park—highlight an industry facing challenges while adopting technology that empowers guests, businesses and workers, AHLA said. They see rising customer expectations and an industry adapting to meet them.

Key findings include:

  • Encore outlines methods for improving workforce satisfaction, and Hireology identifies factors for hiring top candidates.
  • American Express reports that Millennials and Gen-Z prioritize travel experiences, even sacrificing daily expenses to save for trips.
  • Ecolab finds guests still prioritize cleanliness, and Towne Park notes that integrating parking, bell, and door services can offer a competitive edge.
  • Oracle observes AI moving “from experiment to impact,” with hotels using it for tasks ranging from check-in automation to staff scheduling.

The 2025 State of the Industry Partners Trends and Insights Report complements AHLA’s 2025 State of the Industry report released last month.

A recent Expert Market report found that approximately 48 percent of businesses in the accommodation industry view "staffing issues" as the biggest risk to their operations in the next 12 months. Rising labor costs were identified as the second-largest risk by 34 percent, followed by "rising maintenance costs" at 27 percent.

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Report: Rising Labor costs tighten US hotel industry margins
Photo credit: iStock

Report: Labor costs tighten U.S. hotel margins

Summary:

  • U.S. hotel margins tighten as demand slows and labor costs remain high, HotStats reported.
  • Unionized hotels carry 43 percent labor costs, versus 33.5 percent at non-union properties.
  • U.S. sees falling group demand and lower profit conversion since the second quarter.

THE U.S. HOTEL industry is showing signs of strain after a strong start to 2025, according to HotStats. Revenue growth is slowing, occupancy is falling and profit margins are tightening, particularly at unionized properties where labor constraints affect performance.

HotStats’ recent blog post revealed that TRevPAR has barely kept pace with labor costs in the first eight months of the year. While TRevPOR remains positive, gains are offset by declining occupancy, a sign that demand is cooling.

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