As we look ahead to 2026, one theme is emerging more clearly than any other: profit will eclipse revenue as the primary measure of success for hotels. For general managers and commercial leaders, this shift represents more than a financial recalibration – it demands a fundamental change in how hotels are structured, staffed, and managed.
We were joined by Tomasz Leszczynski of BEONx, one of our Expert Partners, to share his thoughts on three predictions that will (or more appropriately, should) influence the hotel industry in 2026.
Across most markets, demand fundamentals remain relatively stable. Occupancy continues to grow modestly, ADR shows incremental gains or event-driven spikes, and RevPAR trends upward in line with historical norms. However, operating costs – particularly payroll, utilities, and distribution – are rising at a far faster pace. The result is margin compression. In this environment, revenue growth alone is no longer sufficient. Net Operating Income (NOI), not RevPAR, is rapidly becoming the metric that matters most to owners, investors, and operators alike.
Here is the full interview and we have summarised some of the key points below.
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Prediction One: Lean Operations Will Win
Hotels that thrive in 2026 will be those that operate leanly without eroding their value proposition. This does not mean cutting headcount indiscriminately or diminishing service. Rather, it means rethinking organizational design. Traditional hotel structures – multiple layers of management, siloed departments, and property-level duplication – are increasingly unsustainable outside the luxury segment.
We are already seeing greater centralization and cluster-based models, where groups of hotels scale without proportionally increasing payroll. Success in this model depends on equipping teams with the right skills, clarity of responsibility, and the tools to operate efficiently. Hospitality remains a people business, but people are harder to find and retain. Once you have talent, the imperative is to enable them to drive profitability, not just topline revenue.
Prediction Two: Technology Must Enable Productivity, Not Just Automation
The second major differentiator will be how effectively hotels deploy technology. The conversation has moved beyond buzzwords like AI and machine learning. The real question is whether technology is freeing teams from manual, operational tasks so they can focus on higher-value activities.
Revenue managers are increasingly expected to act as profit managers – evaluating acquisition costs by channel, understanding total revenue contribution, influencing length of stay, and collaborating across sales and marketing. Yet many are still constrained by legacy systems that consume most of their time. Advanced forecasting, automation, and analytics are no longer optional; they are prerequisites for increasing productivity per employee. Investment in technology and training should be viewed through this lens: not as a cost, but as a lever for sustainable profit growth.
Prediction Three: Connected Intelligence Will Replace Silos
The final piece that ties everything together is what can be described as “connected intelligence.” Profitability is influenced by far more than room rates and occupancy. Distribution costs, marketing spend, staffing levels, housekeeping labor, utilities, and even sustainability metrics all interact.
Hotels that can connect these data points – across systems and departments – will make materially better decisions. This means breaking down silos and enabling platforms to share data in meaningful ways. The objective is holistic decision-making: understanding not just how a pricing decision affects ADR, but how it impacts staffing requirements, operational costs, and long-term customer value.
The Bottom Line for 2026
By 2026, profit and margin will be the dominant narrative across hotel operations, commercial strategy, and investment discussions. The winners will be those who embrace change – restructuring teams, investing in enabling technology, and adopting a connected, profit-first mindset. Hotels that continue to manage by revenue alone risk being left behind, not because demand disappears, but because margins do.
