AI Adoption Accelerates in Hospitality: Hoteliers Report Operational Gains

AI’s Expanding Role in Hotel Operations

Artificial intelligence is increasingly being integrated into the hospitality sector, with hoteliers and technology experts highlighting its impact on cost reduction, operational efficiency, and guest experience. At the 2026 NYU International Hospitality Investment Forum, industry leaders discussed how AI is being used to streamline processes and improve outcomes for both hotel operators and guests.

Umar Riaz, managing director at EY, shared that hotel companies are developing multi-year plans to leverage AI for significant cost savings, targeting reductions between 30% and 50%. He emphasized the value of “agentic AI” in reimagining end-to-end processes, moving beyond traditional departmental silos.

Richard Valtr, founder of Mews, pointed out that AI’s ability to connect property management, restaurant, and housekeeping systems is changing how hotels operate. By coordinating these functions, AI can help hotels operate more efficiently and respond more effectively to guest needs.

Revenue Generation and Guest Personalization

According to Valtr, AI’s greatest opportunity lies in revenue generation through enhanced guest knowledge and personalized service. By understanding guest preferences upon arrival, front-office staff can offer tailored recommendations, extending the hotel’s influence beyond the property itself. This approach aims to create a more holistic travel experience for guests, rather than focusing solely on the in-room stay.

Anna Scozzafava, chief strategy officer at Choice Hotels International, noted that guests are increasingly starting their travel searches on AI-driven platforms. This trend is pushing hotel brands to prioritize their visibility on AI-generated chatbots and booking platforms. Scozzafava stressed the importance of investing in the right infrastructure to remain competitive in this evolving digital landscape.

AI Tools in Practice: Case Studies from Major Brands

Several hotel groups have already implemented AI solutions with measurable results. Hilton, for example, launched an in-house AI planner on its website in March, trained on property data to help match guests with suitable accommodations based on their preferences. Michael Leidinger, Hilton’s chief information officer, said the company is collaborating with major AI providers to stay ahead in a rapidly changing distribution landscape.

Choice Hotels has introduced a suite of AI tools to its franchisees, focusing on automating and improving processes such as the request-for-proposal (RFP) workflow. Scozzafava reported a 30% reduction in RFP response times and a 2.5-percentage-point increase in conversions, demonstrating tangible operational improvements.

Hilton has also rolled out a global messaging solution, with an AI chatbot handling over half of call center chats and more than a third of property-level chats. This tool addresses basic guest inquiries, freeing up staff for more complex tasks.

Evaluating AI Investments and Future Directions

Industry leaders agree that AI’s most immediate impact is on day-to-day hotel operations, but they also see potential for broader applications, such as managing the full lifecycle of hotel properties. Hilton’s AI tool for licensing and property management has already shown high approval rates for its recommendations.

To justify continued investment in AI, Riaz emphasized the need for clear metrics tied to cost reduction, revenue growth, and customer satisfaction. Scozzafava added that AI initiatives must deliver measurable results in profit-and-loss statements and be easy for hotel owners to adopt without extensive retraining.

Overall, the hospitality industry is moving toward more widespread and practical use of AI, with early results indicating benefits in efficiency, guest service, and financial performance.

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