Can Fast Casual Investments Remain Lucrative in 2026?

Presently, LLMs lack abundant imagery and material, such as images of the spaces and amenities, that consumers normally demand when making hotel bookings, Kletzel said., on the other hand, has actually quickly broadened in current years.

Beyond the visitor experience, agentic commerce has the prospective to move the method hotel business' consumer service teams operate and are structured, Klein said. Yes," Klein said.

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This year, several collection brands that launched in 2025 will continue to expand. Additional new brands and partnerships, particularly in the way of life segment, will likely debut as well, according to hospitality experts. In 2025, Marriott introduced 2 collection brand names: Series by Marriott, playing in the upscale area in the U.S., and Outdoor Collection, specifically focused on outdoor lodgings in destinations near national forests, deserts, ski locations and shorelines.

Marriott's Outdoor Collection provides unique accommodations in locations near national parks, deserts, ski areas and coastlines.

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Hilton's Beginning Collection, specifically, has more than 60 hotels in the works across the U.S. and Canada, Kevin Osterhaus, president of lifestyle brand names at Hilton, told Hotel Dive. Outset 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 provide the very best of both worlds: Owners keep the distinct DNA of their residential or commercial property, while unlocking international distribution, profits management, loyalty and support. Visitors get one-of-a-kind stays with the peace of mind of a trusted brand name." "As long as brand names are purpose-built and unique in experience and price point, they add clearness instead of confusion." Kevin Osterhaus President of lifestyle brand names at Hilton From the guest viewpoint, independent shop hotels are preferable due to the fact that they offer authentic experiences, Gabriel Perez, primary running officer of accommodations at The Indigo Road Hospitality Group, informed Hotel Dive.

As for why the hotel business are going after independents in the way of life sector, "it's not about the guests. It's about developing sub-brands within their own brand names to please investors' requirements and to please owner and developers' goals," Perez stated. This, in turn, puts even more pressure on hotel business "to create brand names, micro brand names and subsets of brands in order to broaden their footprint of existing properties," Davis said.

Hilton's collection brands' "unique positioning and storytelling continue to drive interest throughout chain scales," Osterhaus said. Series and Outdoor Collection, both conversion-friendly offerings, pertain to an ownership neighborhood and developers who "are constantly looking for methods to grow, and conversions represent a path for development," Molinary stated.

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According to Osterhaus, "As long as brand names are purpose-built and distinct in experience and price point, they include clarity rather than confusion." This year, Hilton plans to stay "extremely active in the lifestyle space through tactical collaborations, new finalizings and continuous development of our current brands," Osterhaus stated. Molinary anticipates Marriott competitors to begin offering some kind of branding solution in the outside area, particularly, as "it's an actually popular and growing space" with "a lot of interest." Another growing area is the luxury sector.

Top Profitable Franchise Opportunities for 2026

That pattern is expected to continue in 2026 as high-end consumers drive travel spending and hotel reservations in the middle of a wealth bifurcation at play in the industry. "High-net-worth travelers are expected to stay among the most dependable chauffeurs of global travel spending next year," Giray Boran, handling director of BLG Capital, informed Hotel Dive.