Report: Many accommodation businesses cite staffing risk
Staffing remains the top challenge for 58 percent of franchises
About 48 percent of accommodation businesses see staffing issues as their biggest risk over the next year, followed by rising labor costs at 34 percent and maintenance costs at 27 percent, according to Expert Market.
Vishnu Rageev R is a journalist with more than 15 years of experience in business journalism. Before joining Asian Media Group in 2022, he worked with BW Businessworld, IMAGES Group, exchange4media Group, DC Books, and Dhanam Publications in India. His coverage includes industry analysis, market trends and corporate developments, focusing on retail, real estate and hospitality. As a senior journalist with Asian Hospitality, he covers the U.S. hospitality industry. He is from Kerala, a state in South India.
What’s the biggest staffing risk for U.S. hotels in 2025?
APPROXIMATELY 48 PERCENT of businesses in the accommodation industry consider "staffing issues" the biggest risk to their operations over the next 12 months, according to a new report by Expert Market. Rising labor costs were identified as the second-largest risk by 34 percent, followed by "rising maintenance costs" at 27 percent.
The Expert Market Accommodation Industry Report surveyed more than 400 U.S. accommodation businesses on upcoming challenges and strategies to address them amid the industry's highest quit rates since 2022.
“The accommodation industry has faced a number of challenges since the pandemic, but none greater than those around staffing,” said Chris Maillard, Expert Market's editor. “At a time when quitting rates remain higher than other industries, the report recommends that accommodation businesses prioritize their staff, from recruitment through to promotion.”
Housekeeping cleaning staff were the hardest to fill, cited by 38 percent of businesses, followed by front desk clerks at 14 percent and maintenance/janitorial staff at 13 percent, the survey found.
Franchisees at risk
Both franchises at 58 percent and independent businesses at 44 percent saw staffing as their biggest risk, with a greater impact on franchises, the report said. Professionals from both sectors echoed this concern, identifying "staff recruitment, retention and training" as their main challenge.
About 34 percent of businesses increased compensation to address staffing issues, while 31 percent offered training and 21 percent introduced retention incentives, the report found. Some businesses also adjusted operations to manage staffing challenges, with 17 percent introducing more self-service options, 13 percent reducing housekeeping and 12 percent cutting front desk hours.
Implementing new technology was another strategy to address staffing shortages, with around 12 percent investing in software solutions, 14 percent increasing reliance on mobile apps, and 5 percent using AI chatbots for customer communication, a shift for the next five years.
The report noted that rising interest rates, cited by 19 percent of businesses, along with other challenges, are creating a tough economic environment for accommodation businesses in 2025. Meanwhile, staffing remains one of the most affected areas, especially for franchises.
When asked about the impact of rising business costs, nearly 49 percent of franchise businesses and over 34 percent of independents cited cuts to hiring and staffing levels. Additionally, a quarter of both groups are reducing investment in employee benefits and welfare.
“People are at the heart of the accommodation industry, so finding personnel who find this aspect rewarding is key,” Maillard said. “The owners and managers we spoke to cited creating memorable guest experiences and frequently meeting new people as the most commonly enjoyed aspects of the sector. Empowering staff with this mindset, alongside better pay and working conditions, can help alleviate the main ongoing issues.”
American Hotel & Lodging Association President and CEO Rosanna Maietta told the House Committee on Education and Workforce that about 64,000 U.S. hotels support over nine million jobs but still face post-COVID challenges, including labor shortages, inflation, and rising costs. She urged Congress to pass legislation to support the industry's recovery.
Global hotel rates are expected to remain stable through 2026, according to AMEX GBT.
New York is a key business travel and meetings destination.
India is likely to be a focus for travel programs during 2026 negotiations.
GLOBAL HOTEL RATES are expected to remain stable through 2026, as geopolitical tensions and potential U.S. tariffs limit demand and constrain price increases, according to American Express Global Business Travel. New York remains a popular destination for business travel and meetings.
AMEX GBT’s Hotel Monitor 2026, an annual forecast of global hotel rates in business travel destinations, identified India as a key market, with hotel rates and occupancy set to rise.
“This year’s forecast reveals a global environment where geopolitical uncertainties are tempering hotel rate increases,” said Dan Beauchamp, Amex GBT’s vice president for consulting. “These insights allow businesses to make more informed travel decisions. Understanding local market conditions will help companies optimize travel budgets and strategies.”
The report also projects continued rate increases for high-end accommodation based on demand.
New York hotel rates are projected to rise 4 percent in 2026. Despite expected softening in inbound U.S. travel from tariff uncertainty, New York remains a leading destination for business travel and meetings. The forecast is based on company data and IMF inflation and GDP projections.
India is expected to see rising hotel rates and occupancy in 2026. Rate growth will be below last year’s levels but above regional and global averages. India is likely to be a focus for many travel programs during 2026 negotiations. Bengaluru, a major technology and AI hub, recorded the country’s highest occupancy and ADR in the first quarter of 2025.
Simon Fishman, Amex GBT’s vice president for global hotels, said data shows news cycles can affect hotel prices in unpredictable ways.
“Amex GBT’s hotel marketplace gives companies access to over two million properties across 180 countries, including more than 45,000 hotels with pre-negotiated discounts and amenities via the Preferred Extras Hotel Program,” he said. “It enables companies of all sizes to adapt to changing business needs while accessing the best rates and traveler experiences.”
A May report by commerce media firm Criteo found that hotel booking values in Asia-Pacific rose 23 percent in early 2025, compared with 2 percent growth in the Americas.
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OYO નવેમ્બરમાં $7 થી 8 બિલિયનના મૂલ્યાંકનને લક્ષ્યાંકિત IPO માટે તેનું ડ્રાફ્ટ રેડ હેરિંગ પ્રોસ્પેક્ટસ ફાઇલ કરવાની યોજના બનાવી રહ્યું છે. કંપની આવતા અઠવાડિયે તેના બોર્ડ સમક્ષ દરખાસ્ત રજૂ કરશે.
તાજેતરના અઠવાડિયામાં બેંકિંગ ભાગીદારો સાથે ચર્ચાઓ વધી છે, મૂલ્યાંકન માર્ગદર્શન $7 થી 8 બિલિયન (લગભગ ₹70 પ્રતિ શેર), અથવા EBITDA 25 થી 30 ગણું છે, પ્રેસ ટ્રસ્ટ ઓફ ઇન્ડિયાએ સૂત્રોને ટાંકીને અહેવાલ આપ્યો છે.
"જ્યારે અમે OYO ના DRHP અથવા IPO યોજનાઓ સંબંધિત કોઈપણ સમયરેખા પર ટિપ્પણી કરી શકતા નથી, કારણ કે આ OYO ના ડિરેક્ટર બોર્ડ દ્વારા માર્ગદર્શન આપવામાં આવશે અને તેમના વિવેકબુદ્ધિ પર રહેશે, OYO તેના હિસ્સેદારો માટે મૂલ્ય વધારવા માટે વિવિધ વ્યૂહાત્મક વિકલ્પોનું મૂલ્યાંકન કરવાનું ચાલુ રાખે છે," કંપનીના પ્રવક્તાએ PTI ને જણાવ્યું. મે મહિનામાં, OYO એ તેના સૌથી મોટા શેરહોલ્ડર, સોફ્ટબેન્કના વિરોધ અને બજારની અસ્થિરતાને કારણે તેનો ત્રીજો IPO પ્રયાસ મોકૂફ રાખ્યો હતો.
"છેલ્લા કેટલાક મહિનાઓથી, સોફ્ટબેન્કે બજારની ભાવનાનું મૂલ્યાંકન કરવા માટે લંડનમાં Axis, Citi, Goldman Sachs, ICICI, JM ફાઇનાન્સિયલ્સ અને જેફરીઝ જેવી બેંકો સાથે વાતચીત કરી છે. બજારના પ્રતિસાદનું મૂલ્યાંકન કર્યા પછી, તેઓ હવે તેમના નિર્ણયમાં વિશ્વાસ ધરાવે છે," વિકાસથી વાકેફ એક વ્યક્તિએ જણાવ્યું હતું. "કંપની વિગતો તૈયાર કરશે અને મુખ્ય વ્યૂહાત્મક ઘટકોને અંતિમ સ્વરૂપ આપશે ત્યારે બોર્ડનો આગામી અઠવાડિયે સંપર્ક કરવામાં આવશે."
સોફ્ટબેન્ક OYO ના સૌથી મોટા શેરધારકોમાંનું એક છે. અહેવાલમાં જણાવાયું છે કે આંતરિક સૂત્રો સૂચવે છે કે ફાઇલિંગ OYO ના પ્રથમ ક્વાર્ટરના નાણાકીય પ્રદર્શનને દર્શાવશે. આ ક્વાર્ટરમાં હોસ્પિટાલિટી ઉદ્યોગમાં પણ બે આંકડાનો વૃદ્ધિદર જોવા મળ્યો હતો.
OYO તેના પોર્ટફોલિયોને એકીકૃત કરવા માટે એક નવી પેરેન્ટ બ્રાન્ડ ઓળખની યોજના બનાવી રહ્યું છે. આ વર્ષની શરૂઆતમાં, OYO ના CEO રિતેશ અગ્રવાલે સોશિયલ મીડિયા પર Oravel Stays Ltd માટે નામ સૂચનો માંગ્યા હતા. પસંદ કરેલ નામ જૂથનું નવું નામ બની શકે છે. OYO તેની પ્રીમિયમ અને મિડ-ટુ-પ્રીમિયમ કંપની-સેવાવાળી હોટલ માટે એક અલગ એપ્લિકેશન પણ શોધી રહ્યું છે, કારણ કે આ સેગમેન્ટ ભારત અને વૈશ્વિક બજારોમાં વિકસ્યું છે.
અગ્રવાલ G6 હોસ્પિટાલિટીના અધ્યક્ષ પણ છે, જે મોટેલ 6 અને સ્ટુડિયો 6 ના પેરેન્ટ છે. અગ્રવાલ અને G6 ના CEO સોનલ સિન્હાએ અગાઉ એશિયન હોસ્પિટાલિટી સાથે નેતૃત્વ અને પ્રદર્શન પર વાત કરી હતી. OYO એ 2025 ના પહેલા ભાગમાં તેના યુએસ પોર્ટફોલિયોમાં 150 થી વધુ હોટેલો ઉમેરી છે અને વર્ષના અંત સુધીમાં 150 વધુ હોટલો બનાવવાની યોજના બનાવી છે.
Trinity sold a majority stake in the 374-key Hyatt Regency Greenwich, CT.
It has invested more than $250 million in renovations across six assets since 2024.
The hotel underwent a $35 million renovation, updating rooms and event space.
TRINITY INVESTMENTS RECENTLY sold a majority stake in the 374-room Hyatt Regency Greenwich in Greenwich, Connecticut, to an affiliate of Certares Real Estate Management for an undisclosed sum. The company, which acquired the property in 2022 for $37.5 million, invested $35 million in renovations.
The deal is the second partnership between Trinity and Certares, following their 2021 acquisition of the East Miami hotel, the companies said.
Honolulu-based Trinity, led by Sean Hehir, president and CEO, has completed more than $250 million in renovations across six hotel assets since 2024. Michael Gregory “Greg” O’Hara is founder and senior managing director of Certares.
“We’re extremely proud of the transformation our team has achieved at Hyatt Regency Greenwich, repositioning it as a standout property in the region,” said Hehir. “Through a targeted renovation, we’ve created a distinctive hospitality experience that speaks to the expectations of today’s traveler. Partnering with Certares allows us to build on that momentum and drive continued growth.”
Nolan Hecht, senior director at Certares, said the firm is joining Trinity on Hyatt Regency Greenwich, which has been repositioned for long-term success.
“As our 16th hotel acquisition in the last four years, the hotel is a perfect addition to our portfolio, which comprises high-quality lodging assets in supply-constrained markets experiencing demand growth. As the premier hotel for social and corporate group meetings in Fairfield County or Westchester County, we see meaningful opportunity to capitalize on favorable market dynamics at this renovated hotel alongside our trusted partners at Trinity.”
Partners Capital acquired the 162-room Homewood Suites in Houston, Texas, under a 15-year Hilton license, marking its third Hospital Fund I acquisition and first in Houston.
Olympia Hospitality acquired the 139-room Hilton Garden Inn Arvada in Colorado.
The hotel is located near Red Rocks Amphitheater.
The deal extends Olympia’s two-decade relationship with the Hilton Garden Inn brand.
OLYMPIA HOSPITALITY ACQUIRED the Hilton Garden Inn Arvada in Arvada, Colorado. Terms of the transaction were not disclosed.
The 139-room property is located half a mile from Olde Town Arvada and within 15 miles of Red Rocks Amphitheater and the Arvada Center for the Arts. It joins Olympia’s portfolio that also includes The Benson Hotel in nearby Aurora, Colorado.
Amenities at the hotel include the Garden Grille and Bar, grab-and-go options at The Shop, a fitness center, an indoor pool and more than 2,260 square feet of meeting space.
“While our roots may be in the eastern U.S., our strategy has always been national in scope,” said Sara Masterson, president of Olympia Hospitality. “This acquisition is a direct reflection of our confidence in the Hilton Garden Inn brand. With our proven ability to optimize franchise hotels, it’s a combination we feel will not only drive sustained growth but reinforces our position as a trusted partner and leader.”
Olympia’s 20-year relationship with the Hilton Garden Inn brand began in 2003 with the Hilton Garden Inn Portland Downtown Waterfront in Maine, which earned Hilton’s “Deal of the Year” recognition.
In a different case, Stonebridge Cos. added the Statler Dallas, Curio Collection by Hilton, to its managed portfolio.
Peachtree Group originated a $176.5 million retroactive CPACE loan for a Las Vegas property.
The deal closed in under 60 days and ranks among the largest CPACE financings in the U.S.
The company promotes retroactive CPACE funding for commercial real estate development.
PEACHTREE GROUP ORIGINATED a $176.5 million retroactive Commercial Property Assessed Clean Energy loan for Dreamscape Cos.’s Rio Hotel & Casino in Las Vegas. The deal, completed in under 60 days, is its largest credit transaction and one of the largest CPACE financings in the U.S.
The 2,520-room Rio, now under the Destinations by Hyatt brand, was renovated in 2024 and comprises two hotel towers connected by a casino, restaurants and retail, Peachtree said in a statement.
“This transaction is a milestone for Peachtree Group and a testament to the ecosystem we have built over the past 18 years,” said Greg Friedman, Peachtree's managing principal and CEO. “Through our vertically integrated platform, deep expertise and disciplined approach, we have developed the infrastructure to be a leader in private credit. Our ability to deliver speed, creativity and certainty of execution positions us to provide capital solutions that create value for our investors and partners across market cycles.”
Atlanta-based Peachtree is led by Friedman; Jatin Desai as managing principal and CFO and Mitul Patel as principal.
The CPACE loan retroactively funded the renovations, allowing the owners to pay down their senior loan, the statement said. The property improvement plan included exterior work, upgrades to the central heating and cooling plant, electrical infrastructure improvements and convention center renovations.
Jared Schlosser, Peachtree’s head of originations and CPACE, said the deal marks an inflection point, with major financial institutions consenting to its use for the benefit of the capital stack.
“By closing quickly on a marquee hospitality asset, we were able to strengthen the position of both the owner and its lenders,” he said.
The CPACE market has surpassed $10 billion in U.S. originations in just over a decade, according to the C-PACE Alliance, with growth expected as more institutional owners and lenders adopt it.
“We see significant opportunity for retroactive CPACE and its use in funding new commercial real estate development,” Schlosser said. “It is an alternative to more expensive forms of capital.”
In June, Peachtree named Schlosser head of originations for all real estate and hotel lending and leader of its CPACE program. Peachtree recently launched a $250 million fund to invest in hotel and commercial real estate assets mispriced by capital market illiquidity.