Will Hospitality Franchises Be Lucrative in 2026?

Currently, LLMs lack rich images and content, such as pictures of the rooms and facilities, that consumers typically require when making hotel reservations, Kletzel said. When this is boosted, including by brand names exposing their content to LLMs, that will be "a huge leap forward to getting consumers comfy." Hotel guest commitment and brand trust, meanwhile, has quickly broadened recently.

Beyond the visitor experience, agentic commerce has the possible to move the method hotel companies' customer support teams run and are structured, Klein said. "Will there be some corporations that discover the chance to lower personnel? Yes," Klein said. Brand names that think in excellent customer experience and service will learn that AI might assist their representatives "get included in more intricate, more business-critical conversations that assist grow the service." In 2025, Hyatt minimized staff by around 30% across its visitor services and support groups "in reaction to the progressing nature of visitor questions and shifting company requirements," per the business.

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This year, several collection brands that launched in 2025 will continue to broaden. Extra brand-new brands and partnerships, particularly in the way of life section, will likely debut also, according to hospitality professionals. In 2025, Marriott introduced two collection brand names: Series by Marriott, playing in the high end area in the U.S., and Outdoor Collection, solely focused on outdoor accommodations in destinations near national parks, deserts, ski locations and shorelines.

Marriott's Outdoor Collection offers special lodgings in destinations near nationwide parks, deserts, ski areas and shorelines. Thanks To Marriott International Wyndham Hotels & Resorts unveiled its Dazzler Select brand extension targeting independent hoteliers in the economy lifestyle section. And IHG Hotels & Resorts touted its own forthcoming upper-tier collection brand throughout third-quarter profits.

Key Global Shifts in Brand Development

Hilton's Outset Collection, specifically, has more than 60 hotels in the works throughout the U.S. and Canada, Kevin Osterhaus, president of way of life brand names at Hilton, told Hotel Dive. Outset is presently exploring possible new places in San Diego, Los Angeles and Virginia Beach, Virginia, as well as markets in New Mexico and Colorado in 2026, Osterhaus said.

"Collection brand names are appealing due to the fact that they provide the best of both worlds: Owners keep the special DNA of their property, while unlocking international distribution, revenue management, loyalty and support. Kevin Osterhaus President of lifestyle brand names at Hilton From the visitor viewpoint, independent boutique hotels are desirable because they use authentic experiences, Gabriel Perez, chief running officer of accommodations at The Indigo Road Hospitality Group, informed Hotel Dive.

As for why the hotel companies are chasing after independents in the way of life sector, "it's not about the visitors. It's about creating sub-brands within their own brand names to please financiers' needs and to satisfy owner and designers' objectives," Perez stated. This, in turn, puts even more pressure on hotel companies "to develop brands, micro brand names and subsets of brand names in order to broaden their footprint of existing possessions," Davis stated.

Hilton's collection brands' "distinct positioning and storytelling continue to drive interest throughout chain scales," Osterhaus said. According to Bobby Molinary, Marriott's primary advancement officer for select brands, interest in Marriott's new collection brand names comes in the middle of a challenging high-cost-of-construction environment that has made it "significantly difficult to build new hotels." Series and Outdoor Collection, both conversion-friendly offerings, pertain to an ownership community and developers who "are constantly searching for methods to grow, and conversions represent a course for development," Molinary stated.

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This year, Hilton plans to remain "very active in the way of life space through strategic partnerships, brand-new finalizings and ongoing development of our existing brands," Osterhaus said. Another growing area is the luxury segment.

Analyzing Fast Casual Market Share Data for 2026

That trend is expected to continue in 2026 as luxury customers drive travel costs and hotel reservations amidst a wealth bifurcation at play in the market. "High-net-worth travelers are expected to stay among the most trustworthy chauffeurs of international travel spending next year," Giray Boran, handling director of BLG Capital, told Hotel Dive.