Against a backdrop of subdued consumer confidence, rising costs and continued policy uncertainty, this year’s Annual Hospitality Conference explored how businesses can manage risk while positioning themselves for future growth.
Despite the challenges, the mood at AHC 2026 was broadly positive. Demand remains resilient, capital is available and investment continues, although decision-making has become more disciplined. The message was clear: opportunities remain, but success will depend on strong fundamentals, differentiation and the ability to adapt.
Resilient demand, changing expectations
Weak consumer sentiment has not translated directly into weaker hotel demand. People continue to prioritise travel, leisure and memorable experiences, but are becoming more selective about where they spend.
Standardised offerings face greater pressure on pricing, while distinctive experiences that offer clear value can still command a premium. Differentiation is therefore critical. Loyalty programmes can support retention, but ultimately depend on a consistent and authentic guest experience. As brands expand, operators must also ensure growth does not dilute what makes them distinctive.
From revenue growth to profitable growth
The focus is shifting from top-line performance to profitability. Strong occupancy or revenue growth does not automatically translate into improved margins as labour, food and other operating costs continue to rise.
Operators will need to focus on forecasting, workforce planning and operational efficiency, supported by reliable, timely data. The ability to identify and control costs without compromising the guest experience will be increasingly important.
AI: from conversation to application
AI was a major theme, with technology already changing how consumers search for, compare and book hotels. Within hotel operations, the most practical opportunities discussed included revenue forecasting, payroll planning and operational efficiency.
The next step is to move beyond experimentation and focus on applications that deliver measurable results. AI should augment rather than replace hospitality teams, freeing people to focus on higher-value activity while preserving the personal service that remains central to the guest experience.
A more disciplined investment environment
Investor appetite remains, but underwriting is increasingly focused on fundamentals. Rather than pursuing growth at any cost, investors are looking for value through existing assets, including conversions, repositioning and creative deal structures.
Hotels are also increasingly recognised as anchors for regeneration and placemaking. Greater involvement from public bodies and mayoral combined authorities could create new investment opportunities, although it may also bring greater complexity around local levies and tourist taxes.
Finding clarity in uncertainty
Policy uncertainty remains a concern, particularly around VAT, overnight levies and the wider tax burden. The sector needs greater stability and a credible medium-term growth plan to support long-term investment decisions.
Ultimately, AHC 2026 reflected a sector that is realistic about the challenges but continues to see opportunity. In an unpredictable environment, the businesses best placed to succeed will be those that use data and market insight to make disciplined decisions, while staying focused on what customers value most.
The opportunity is there – but turning risk into reward will require disciplined management, adaptability and authentic hospitality.
