Survey: U.S. hotel owners confident despite challenges

What Is Driving Optimism Among Hotel Owners in 2025?

U.S. HOTEL OWNERS and developers remain confident in the industry’s resiliency despite ongoing headlines about tariffs, inflation and interest rates, according to a Wyndham Hotels & Resorts study. Support in marketing, revenue management, operations and access to executive leadership are key factors they consider when choosing a brand.

Wyndham’s inaugural “Hotel Owner Trends Report,” which the company said is based on a survey of hundreds of owners and developers, found that extended-stay hotels remain a focus.

“There’s a lot of noise in the marketplace right now, and yet more than 90 percent of hotel owners and developers are optimistic about what the next five years hold for them,” said Amit Sripathi, Wyndham’s chief development officer. “That’s because they know that in hospitality, they’re playing the long game. For example, while most admit to concerns over current economic volatility, four out of five say they still plan to expand their portfolios over the next five years.”

Nearly 98 percent of those surveyed are open to new branded offerings, highlighting the value brands add over independent operation. About 55 percent prefer traditional brands, while just under 45 percent seek soft brand options.

More than 80 percent of hotel owners and developers say a strong loyalty program is critical to a hotel’s success, with about 62 percent of those open to joining or switching brands ranking it among their top five factors, Wyndham said.

Interest in expansion spans nearly all segments, with 39 percent targeting lifestyle and boutique hotels, 36 percent focusing on midscale and upper-midscale, and 35 percent on economy.

Extended stay tops list

Extended-stay hotels remain a focus for owners and developers, with 96 percent of those surveyed citing opportunity driven by demand and developer return on investment, the report said. Nearly 59 percent recognize that operating in extended-stay requires a different approach from traditional brands and that adopting this model is key to success. Wyndham launched extended-stay brands ECHO Suites in 2022 and WaterWalk in 2024.

All respondents expect new business to grow over the next five years as multi-year infrastructure spending rises, including beyond the extended-stay segment, driven by projects funded through these investments, the survey found.

More than 80 percent of hotel owners and developers, in extended-stay and other segments, say cross-sell and upsell opportunities are key, calling them critical or very important to their hotel’s success.

Tech integration is key

The majority of owners and developers list access to technology as a top-five factor when choosing a brand, the study said. About 20 percent say investing in technology is how they plan to differentiate their hotel from the competition. Wyndham has invested nearly $350 million in technology since going public in 2018.

Scott Strickland, Wyndham’s chief commercial officer, said the message from hotel owners and developers is that they want the right brands and partners.

“They want the best technology, the best rewards program, and the best support,” he said. “That’s exactly what Wyndham offers, and it’s why our franchisee retention rate has grown to nearly 96 percent, including our economy brands, which are among the highest in the industry.”

About 61 percent of hotel owners have invested or are considering investing in streaming, digital room keys, and self-service kiosks to enhance guest experience. Nearly 46 percent have done or are considering the same for EV charging stations. More than 90 percent of hotel owners use AI in some capacity, with over 70 percent applying it to operations and more than 60 percent using it for guest services, the survey found.

Approximately 33 percent of hotels already use guest messaging platforms, with nearly 30 percent planning to invest or increase investment. Similarly, 33 percent offer mobile tipping, and nearly 30 percent expect to invest or increase investment in it.

Geoff Ballotti, Wyndham’s president and CEO, announced new initiatives in technology, marketing, loyalty, sourcing, and expansion in India at the 2025 Global Conference at Caesars Forum in Las Vegas.