Katarina Railko is a seasoned hospitality expert with an extensive background in travel, tourism, and the specialized world of large-scale expos and conferences. Having navigated the intricacies of the entertainment and events sectors, she brings a unique perspective to the current shifts in the global hotel market. Her insights offer a deep dive into how major brands are balancing economic headwinds with aggressive development goals, providing a roadmap for an industry in transition.
With U.S. RevPAR experiencing notable declines recently—some brands dropping by as much as 8%—how are you adjusting your revenue management strategies for the coming year? What specific performance indicators are you monitoring to identify a genuine market recovery versus a temporary spike?
The current environment requires a more granular approach to data, especially since we saw full-year RevPAR in 2025 fall for the first time since the 2020 disruption. When a brand like Wyndham reports an 8% year-over-year decline for three consecutive quarters, it serves as a wake-up call to move beyond surface-level occupancy metrics. We are now focusing heavily on RevPAR relative to market share to ensure we aren’t just winning on price while losing on long-term value. To distinguish a genuine recovery from a fleeting spike, I am closely watching the stabilization of the midscale and economy segments, which often act as the “canary in the coal mine” for broader consumer spending. We are also monitoring the pace of forward bookings in the corporate sector to see if the volatility of 2025 is truly behind us or if the downward trend will persist.
External factors like government shutdowns and fluctuating international demand have created significant travel turbulence lately. What operational pivots are necessary to stabilize occupancy during such disruptions, and how do you rebalance your marketing to target more resilient domestic travel segments?
The extended government shutdown in late 2025, which lasted several weeks through October and November, hit major players like Marriott and Choice Hotels particularly hard. These events prove that over-reliance on any single demand driver, whether it is government contracts or international inbound travelers, is a major risk. Operationally, we are seeing a shift toward “hyper-local” marketing strategies that capitalize on drive-to markets and regional business travelers who are less affected by federal gridlock. This involves retooling digital ad spend to target domestic consumers within a 300-mile radius, offering packages that emphasize convenience and immediate value. By diversifying the guest profile to include more weekend “staycationers,” hotels can create a more stable floor for occupancy even when the international gates are temporarily narrowed.
Many hospitality groups are achieving record pipeline growth through conversions and new collection brands despite economic uncertainty. What are the primary logistical hurdles of integrating these properties quickly, and how do you maintain quality control while scaling your portfolio in a tightening market?
Scaling in a tightening market is a delicate balancing act, as we saw with the surge in collection brand launches during the fourth quarter of 2025. The primary hurdle is the speed of conversion—taking an existing asset and quickly aligning it with a brand’s digital infrastructure and service standards without alienating the existing staff or guests. To manage this, many CEOs are prioritizing modular technology rollouts that can be “plugged in” to acquired properties almost overnight. Quality control remains the biggest threat to brand equity, so we are implementing stricter, technology-led auditing processes that track guest satisfaction in real-time during the first 90 days of a conversion. This ensures that even as the pipeline hits new highs, the physical and service-oriented identity of the brand remains consistent and premium.
Premium consumers are currently prioritizing travel experiences over physical goods, even as some luxury gaming hubs see revenue softness. How are you tailoring your high-end amenities to meet this specific shift, and what unique experiential offerings are driving the most significant growth right now?
The luxury sector is undergoing a fascinating transformation where the “stuff” in the room matters less than the memory made outside of it. Even though gaming giants like MGM, Caesars, and Wynn saw some revenue softness in Las Vegas during Q4, they are still doubling down on the “experience economy” because that is where the high-end spend is moving. We are moving away from traditional amenities like high-end toiletries and toward curated, exclusive events—think private chef-led dinners or “behind-the-scenes” access to entertainment venues. Brands like Hyatt and Marriott are aggressively pivoting their luxury portfolios to offer these high-touch, sensory-rich experiences that physical goods simply cannot replace. This shift is vital because it creates a deeper emotional connection with the guest, making them less price-sensitive even during broader economic downturns.
The industry is seeing a surge in agentic technology and automated service development to streamline operations. Could you describe the step-by-step process for integrating these advanced tools into daily hotel workflows, and what are the trade-offs regarding labor costs and the traditional guest experience?
Integrating agentic technology—AI that can act on behalf of the guest or the staff—starts with identifying high-friction, low-touch points, such as the check-in process or basic concierge inquiries. The first step is deploying automated messaging platforms that handle roughly 70% of routine guest questions, followed by integrating these tools into the property management system to automate back-of-house scheduling. While this significantly reduces labor costs by allowing smaller teams to manage larger inventories, the trade-off is the potential loss of the “human touch” that defines hospitality. To mitigate this, we use the time saved by automation to empower staff to engage in more meaningful, face-to-face interactions with guests who have complex needs. The goal is to let the machines handle the mundane tasks so the humans can focus on delivering an exceptional, emotionally resonant guest experience.
What is your forecast for the hotel industry in 2026?
I expect 2026 to be a year of “reconstructive growth,” where the industry finally moves past the post-pandemic volatility into a more predictable cycle. While RevPAR may take time to fully rebound to record levels across all segments, the record-high development pipelines and the strategic shift toward conversions will lead to a more diversified and resilient global portfolio. We will likely see a widening gap between brands that successfully integrated agentic AI to lower costs and those that remained stuck in traditional labor models. Ultimately, the industry will be defined by its ability to capture the premium traveler’s desire for experience, leading to a robust recovery in luxury and lifestyle segments by the second half of the year.
