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Report: Hotel modernization hits glitches

Technology spending and operational improvement remain disconnected

Report: Hotel modernization hits glitches

Hotel modernization advances, but fragmented systems and data gaps slow decisions, according to Otelier.

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  • Issues with systems and data still hinder modernization, Otelier reported.
  • Technology spending and operational improvement remain disconnected.
  • Few respondents said their systems are fully integrated.

MANY ORGANIZATIONS REPORT progress in operational modernization, yet fragmented systems, manual processes and low confidence in data continue to slow decisions and strain teams, according to an Otelier study. The study also found a disconnect between technology spending and operational improvement.

Otelier’s “The 2026 Hotel Operations Index: Progress, Pressure and the Path Forward”, developed with Agilysys and Sage, examined how hotel owners and operators manage system integration, data quality and readiness for emerging technologies such as artificial intelligence.


“The results show an industry that’s moving forward—but not fast enough to keep pace with the challenges hoteliers face today,” said Rob Lawrence, Otelier's CEO. “Most respondents told us their data and systems are still fragmented and meaningful integration remains elusive. That has consequences for cost control, agility and the ability to take advantage of technologies like AI.”

The report, based on a survey of hotel owners and operators, highlights industry challenges and outlines opportunities focused on connected systems, reliable data and automation to reduce manual work and increase visibility across hotel portfolios.

Many participants described recent technology progress as incremental, suggesting that operational complexity is increasing despite larger technology budgets. However, few respondents said their systems are fully integrated and even fewer trusted the accuracy and reliability of their data.

A recent study by Wyndham Hotels & Resorts found that artificial intelligence has moved from concept to business imperative, with hotel owners seeking guidance, technology and partnerships from established brands.

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