Even as travel demand is expected to remain steady compared to 2025, the American Hotel & Lodging Association (AHLA) reported that a survey of hotel owners and operators across the U.S. conducted in late February 2026 highlights continued pressure from higher supply, labor, insurance and energy costs as the industry prepares for major global events, including the 2026 FIFA World Cup.
“Hoteliers are resilient, but the cost pressures they’re facing are very real,” said Rosanna Maietta, president and CEO of AHLA, in a statement. “From rising insurance and energy expenses to workforce shortages, hotels are navigating significant operational challenges. As the U.S. prepares to host global events like the World Cup, ensuring hotels have the workforce and resources they need will be critical to maintaining America’s leadership in travel and tourism.”
Operating costs remain the biggest challenge for hotel
owners, though other financial pressures include:
- Cost of goods and supplies (71%)
- Labor costs (65%)
- Fluctuating demand and occupancy (59%)
- Utility and energy costs (50%)
- Insurance premiums (43%)
- Workforce shortages (42%)
Staffing shortages also persist across the industry as more
than half of respondents report their properties are somewhat or severely
understaffed. To recruit and retain employees, hotels are offering a range of
incentives, including higher wages (70%), flexible scheduling (54%), hotel
discounts (54%), and enhanced benefits (31%).
Travel demand is expected to hold steady as 39% of
respondents believe it will remain steady compared to 2025, 26% predict it will
be somewhat stronger and 6% say it will be much stronger.
However, hotels beginning to track early travel trends in
the U.S. during the upcoming FIFA World Cup, nearly 20% of properties report
bookings currently below expectations for 2026.
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