We cover Service Properties Trust’s $71 million hotel sell-off and a wave of openings, closures, and portfolio shifts across the U.S. and Caribbean. Plus, new research shows hotel chains are cautious on AI while independents move faster, reporting real revenue gains from automation, marketing, and dynamic pricing.
The hospitality industry is increasingly embracing artificial intelligence (AI), transforming the way hotels operate, communicate with guests, and optimize revenue. Recent studies from h2c, Cloudbeds, and TakeUp reveal stark differences in adoption between large hotel chains and independent properties—and show why independents are seeing faster ROI from AI investments.
According to h2c’s global survey of 171 hotel chains, representing over 11,000 properties, AI adoption is widespread: 78% of chains already use AI, with 89% planning to expand its applications in the next 12–24 months. Chatbots dominate current usage (42%), while customer data management is the leading area of planned investment (50%).
Despite this, the trust-reliance gap is significant. Chains gave AI a trust score of 6.6/10, but actual reliance averaged just 4.7. Only 7% report having a comprehensive, company-wide AI strategy. Barriers include a lack of expertise (62%), unclear strategy (51%), integration challenges (45%), high costs (39%), and organizational resistance (31%). Other concerns involve data security, ROI uncertainty, and data quality issues.
Michaela Papenhoff, managing director of h2c, explains: “AI adoption in hospitality is accelerating, but most hotel chains are still experimenting. Bridging the trust-reliance gap will require more investment in staff skills, better integration, clear ROI measurement, and a focus on use cases that deliver tangible value.”
Smaller operators are moving faster. TakeUp’s poll of 200 independent hotels found that 74.5% of AI users report positive results, often within 6–24 months of adoption.
Key benefits include:
Automated guest communication (16.7%)
Marketing campaign optimization (13.8%)
Dynamic pricing optimization (12.1%)
Time savings and operational efficiency (19.7%)
Cost reduction (13.1%) and competitive advantage (10.1%)
Revenue impacts are notable: 25.5% of independents reported gains of 6–10%, and 35% reported increases of 11–20%. Nearly 70% see AI as essential to staying competitive, while 39% call it a significant advantage.
Across both chains and independents, the motivations for AI adoption converge on efficiency, reducing repetitive tasks, and enhancing guest experiences. Chains prioritize business intelligence (78%), chatbots (77%), and digital marketing (72%), while independents focus on guest communication, marketing, dynamic pricing, and energy cost reduction.
Staff acceptance is encouraging. TakeUp found 78% of employees comfortable using AI tools, and two-thirds of chains reported that AI frees teams for strategic or guest-facing work. Maintaining the human touch remains critical—62% of chains and 74% of independents say it is essential to hospitality success.
Consumer comfort with AI is growing. Phocuswright research shows:
51% of U.S. travelers now use generative AI, up from 39% in 2024.
In the U.K., 41% use generative AI; France 39%, Germany 38%.
33% of U.S. travelers use AI for trip planning and in-destination support.
Younger travelers are especially receptive: 60% of millennials and Gen Z in the U.S., U.K., and France use generative AI, compared to 44% in Germany. When finding hotels, 85% of U.S. travelers trust AI recommendations.
For large chains, the challenge is moving beyond pilots to enterprise-wide integration: robotic process automation, proactive AI agents, and digital identity verification are gaining attention. Independents focus on energy management, guest communication automation, and advanced marketing tools. Early adopters are gaining competitive advantages, proving that strategic AI deployment can drive measurable business value.
As Bobby Marhamat, CEO of TakeUp, notes: “Independent property owners aren’t just dipping their toes into AI anymore—they’re diving in and using it to win.”
AI is no longer optional—it’s a strategic tool for improving efficiency, personalizing guest experiences, and driving revenue growth. Chains must bridge the trust-reliance gap and invest in skills and integration, while independents demonstrate that nimble adoption can produce fast ROI. Ultimately, hotels that balance automation with human touch will thrive in the evolving AI-powered hospitality landscape.
