#hotel-decline

#hotel-decline

Luxury hotels are supposed to provide exceptional hospitality, yet many seem to prioritize profit over guest satisfaction, leading to feelings of exploitation during stays.

The general manager for the Palm Springs Riviera Resort & Spa told SFGATE that while its 233 employees were told they were laid off, the resort plans to keep on as many staff members as it can during the seven-month renovation, with a commitment to rehire the rest after the modernization is complete.

Analysts predict that Disney's parks will remain money-printing machines, with attendance at Disneyland and Disney World expected to rebound after a slight dip last fiscal year.

Owners across the country report that fewer guests are ordering cocktails, and that missing bar revenue is squeezing margins that were already razor thin. The slowdown is hitting neighborhood joints and big casual-dining chains alike. Chefs and operators from New York to Los Angeles say alcohol sales, long the highest-margin part of the check, have slipped enough to force changes in hours, menus and staffing.

In a world where third spaces are dying, and consumers are being segregated between haves and have-nots at every turn, the airport bar has quietly endured. But the airport bar is not-so-quietly under siege. Airport concessions took a hit during the pandemic, and while they benefited from the subsequent revenge travel, the rebound has stalled.

While vacation prices have increased nationwide since 2019, the sharpest spikes have not occurred in the country's most expensive cities. Instead, the steepest growth in costs has taken place across the Mountain West, where demand has surged in midsize cities that once offered affordable alternatives to pricier coastal destinations.

The off-season practically vanished in many parts of the world. Remote work, social media frenzy, and ruthless dynamic pricing have turned fall and spring into peak-season clones. Even winter is no refuge anymore. The idea of an off-season is 100% disappearing.

Artificial intelligence is no longer futuristic-it's functional. Hotels are already utilizing AI to integrate siloed systems, such as PMS, accounting, CRM, and forecasting platforms, to drive faster and smarter decisions. Tools like Placer.ai and PredictHQ help identify ideal customers through demographic, behavioral, and geolocation data. As automation expands, the next opportunity lies in strategic human oversight: consultants and managers will interpret AI outputs, guiding capital investments and operational priorities rather than being replaced by algorithms.

And yet, the U.S. tourism industry is worried. While the rest of the world saw a travel bump in 2025, with global international arrivals up 4%, the U.S. saw a downturn. The number of foreign tourists who came to the United States fell by 5.4% during the year-a sharper decline than the one experienced in 2017-18, the last time, outside the height of the COVID-19 pandemic, that the industry was gripped by fears of a travel slump.

New data from Bristol-based hospitality recruitment platform Limber shows that average shift hours posted by hospitality businesses in 2025 are down 30% compared with 2022, underlining the depth of pressure facing operators across the industry. According to Limber, average monthly shift hours per business have fallen from 112 hours in 2022 to just 79 hours in 2025, as venues attempt to control costs by running leaner rotas and reducing reliance on flexible labour.

Construction of hotels has plunged in the Bay Area, a nosedive that was unleashed by stubborn problems for hotel financing and elevated construction costs, a new report from Atlas Hospitality Group shows. An estimated 15 hotels with an aggregate 1,610 rooms were under construction in the Bay Area during 2025, representing a sharp decline from the equivalent totals in 2024, according to the report from Atlas Hospitality. This news organization derived the totals from figures that Atlas Hospitality compiled for its report.

"We continue to see extraordinary demand for travel and experiences," Capuano told Yahoo! Finance. "It feels like a fundamentally permanent shift that consumers are prioritizing spending on travel and experiences versus purchase of hard goods." The hotel chain expects earnings growth in 2026, with revenue driven by adding rooms to its portfolio and higher co-branded credit card fees. While U.S. business was slightly weaker in the fourth quarter due to the government shutdown, Capuano says the fundamentals remain strong.

InterContinental Hotels Group, owner of Holiday Inn, Crowne Plaza, and Hotel Indigo, reported robust revenue and profit growth for 2025, driven by a record hotel rollout and strategic acquisitions. The group opened 443 new hotels over the past year - adding more than 65,000 rooms - and completed its acquisition of the European hotel brand Ruby. Financially, IHG posted total revenue of $5.19 billion (£3.8 billion), up 5% from 2024, while operating profits rose 15% to $1.2 billion (£880 million).

But for many hotels, visibility-and sometimes survival-comes at the expense of profits. That dynamic is now at the heart of Beijing's antitrust probe. Regulators allege Trip.com is abusing its market position, with analysts citing deflation across the sector as the government's main concern. Interviews with lodging operators, industry groups and travel consultants describe a system where constant price-cutting and opaque policies are eroding profitability, even as demand rebounds.

On a Tuesday earnings call, Marriott's outgoing finance chief, Leeny Oberg, said Marriott incurred a $23 million loss from terminating its contract with the luxury short-term rental company Sonder in November. A Tuesday earnings report said the $23 million in charges came from termination expenses and the write-down of Marriott's licensing agreement with Sonder. Oberg added that it was a one-time expense.

Years later, after countless nights in hotels from budget chains to five-star establishments, I've noticed something interesting. Those of us who grew up in lower-middle-class households carry certain behaviors with us into these spaces. They're not necessarily bad habits, but they're telling. They reveal a childhood where every pound mattered and waste was practically a sin. I've seen these patterns in myself, in friends from similar backgrounds, and in countless fellow travelers over the years.