Analyzing Fast Casual Market Share Trends for 2026

, hospitality industry leaders are looking towards 2026 with careful optimism. Increasing functional costs are slated to challenge owners this year and lower-tier segments might have a hard time amid a growing wealth bifurcation.

And through all of it, hotel business are anticipated to fortify their portfolios with new brand name offerings and partnerships. As the year gets underway, Hotel Dive talked to hospitality leaders from varying corners of the industry about their 2026 forecasts. Below are the leading trends anticipated to effect hotel operations, efficiency, net unit growth and more this year.

Total salaries, earnings and benefits paid by U.S. hotels rose to $127 billion in 2025, according to data from the American Hotel & Accommodations Association, shared with Hotel Dive. In 2026, that figure is forecasted to reach $131 billion, representing a roughly 3% year-over-year boost, per AHLA. For hotel owners, increasing labor expenses position a difficulty to net operating earnings growth, Kevin Davis, Americas CEO at JLL Hotels & Hospitality, informed Hotel Dive.

Why Hospitality Brand Share Is Rising

Rising labor expenses have been a challenge for hoteliers for years, Davis stated, particularly following the COVID-19 pandemic. Overall, hotel labor expenses have increased 15.3% from 2019 to 2025, exceeding the 12.8% growth in overall operating revenue, according to AHLA.

3, 2024 in San Francisco, California. Justin Sullivan through Getty Images In 2026, Davis noted, union settlements will be "front and center" in New York City, where the New York City Hotel and Video gaming Trades Council's union contract with the Hotel Association of New York City City is set to end in July.

"Need has not kept up with this speed," she said. Incomes, salaries and payroll-related expenses paid by hotels now account for more than 32% of overall earnings, according to AHLA.

Strategic Steps for Restaurant Corporate Expansion

As more hotel guests turn to expert system to improve their travel experience, reserving hotels straight through big language designs (LLMs) might be next, hospitality professionals said. Agentic commerce a procedure by which self-governing AI representatives act on behalf of a customer to discover, compare and finish purchases is a trend that has sped up throughout markets like retail.

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According to PwC's 2025 Vacation Outlook report, 76% of millennials said they're most likely to use AI for travel suggestions. That number is growing, Jonathan Kletzel, PwC's travel, transport and logistics leader, informed Hotel Dive. Michael Klein Head of retail, travel and hospitality product marketing at Talkdesk To stay competitive with direct reservation, larger multibrand hotel business will "embed LLMs into their own brand sites and mobile apps, and change the method the customer searches," Kletzel said.

"If you are not visible in an LLM search engine result which numerous brands aren't, and this is the huge panic that they're all going through today customers aren't going to consider you," he said. Michael Klein, head of retail, travel and hospitality product marketing at AI client experience platform Talkdesk, similarly informed Hotel Dive that hospitality players require to ensure their property details is being indexed by LLMs to appear in traveler queries.