The Year of Clarity for Hoteliers
Each year, the Lodging Conference brings together hospitality’s most influential minds to discuss the state of the industry. In 2025, one message was unmistakable: profitability is under pressure. From higher construction costs driven by tariffs to elevated food expenses and slowing ADR growth, hotels are being asked to do more with less. Yet the conference also underscored a clear path forward: those who run more efficiently, plan with precision, and make decisions based on connected data are best positioned to protect margins and elevate guest experiences. As operators head into budget season, data from this year’s speakers underscored both the headwinds and the opportunities ahead. Here are the top five trends we saw and what they mean for hotel owners and management companies preparing their budgets.
Demand Is Softening-But Not Collapsing
Source: Isaac Collazo, “Current Trends and Outlook,” STR/CoStar – Lodging Conference 2025
U.S. room demand has declined 0.1% year-to-date through August 2025, with RevPAR also down 0.1%, marking the lowest non-recessionary result since 2011. Collazo reported that average daily rate (ADR) has lagged inflation in 23 of the last 36 months, and expenses are climbing faster than revenues, eroding profit growth.
Why it matters: As rates stagnate and costs rise, hoteliers must pivot from chasing top-line gains to managing what they can control: efficiency, automation, and accuracy.
💡 Inn-Flow takeaway: Clarity begins with clean, connected data. A unified accounting and budgeting system helps operators identify and address cost drivers before they become profit leaks.
Profitability Pressure Is Real-Especially Beyond the Top Line
Source: Andrea Grigg, “U.S. Hotel YTD July 2025 Trends,” CBRE Hotels Research – Lodging Conference 2025
CBRE’s analysis revealed that Gross Operating Profit per available room (GOPPAR) declined 3.6% year-to-date through July, even though total operating revenue remained nearly flat at -0.3%. Rising departmental and non-operating expenses are cutting into margins faster than the industry anticipated.
Why it matters: In a low-growth environment, profitability depends on visibility. Leaders must understand performance drivers across every property and department.
💡 Inn-Flow takeaway: With integrated hotel accounting software, operators can consolidate multi-property data instantly, track cost ratios, and forecast more accurately – no more guesswork or manual rollups.
Guest Satisfaction Is Steady, But Expectations Keep Rising
Source: Andrea Stokes, “Trends Shaping the Hospitality Industry,” J.D. Power – Lodging Conference 2025
The 2025 J.D. Power North America Hotel Guest Satisfaction Study analyzed 39,000 guest stays across nine hotel segments. The average satisfaction index reached 662 out of 1,000, but performance gaps are widening:
Hotels built after 2010 averaged 710, compared to 631 for older properties.
Key “table-stakes” indicators-room cleanliness (7.03), front desk courtesy (7.23), and outlet convenience (6.59)-all slipped slightly year over year.
32% of Gen Z guests use social media to research hotels, while half rely on online reviews.
Why it matters: Guests aren’t lowering expectations; they’re diversifying them. Real-time visibility into service metrics, maintenance, and staff performance is becoming as critical as rate strategy.
💡 Inn-Flow takeaway: Unified labor, facilities, and accounting data enable leaders to connect operations to guest experience, ensuring standards stay high without increasing workload.
The Macro Picture: Slower Growth, Sticky Inflation
Source: Bernard Baumohl, “The Reckoning: Economic Resilience or Recession?” The Economic Outlook Group – Lodging Conference 2025
Baumohl projected continued economic turbulence heading into 2026. The average U.S. tariff rate hit 18.3% in August 2025-the highest since 1934-raising import and construction costs. Meanwhile, consumer spending on hotels and motels has fallen in four of the past five quarters, from $158.6 billion in Q1 2024 to $153.8 billion in Q2 2025.
Even so, discretionary spending remains resilient, particularly in food and leisure categories. Americans are still traveling, but they’re more selective and price-sensitive than before.
Why it matters: Inflation may ease, but cost volatility isn’t going away. Operators need forecasting tools that help them plan for multiple scenarios and adjust quickly.
💡 Inn-Flow takeaway: Budgeting & Forecasting 2.0 empowers finance teams to model best-, mid-, and worst-case outcomes instantly, bringing agility and confidence to every planning cycle.
Technology as an Efficiency Engine-Not a Buzzword
Source: Isaac Collazo, “Current Trends and Outlook,” STR/CoStar – Lodging Conference 2025
Collazo emphasized that hotel occupancy sits at 62.5%, supply is up 0.8%, and short-term rentals continue gaining share. With thin margins and more competition, technology must deliver tangible productivity – not just new dashboards.
Why it matters: Many hotel companies are still juggling siloed systems for accounting, labor, payroll, and maintenance. Integration is no longer optional; it’s the foundation for profitability.
💡 Inn-Flow takeaway: Inn-Flow unifies accounting, business intelligence, labor, and facilities management in one intuitive platform. The result? Less time reconciling data, more time driving performance.
Budget Season 2026: Plan Smarter, Lead with Clarity
The most effective hotel leaders aren’t waiting for the market to stabilize; they’re finding new ways to work more efficiently, stay aligned across portfolios, and have access to better tools for decision making. As hotels head into another complex budget season, protecting profitability starts with connecting every part of the operation, from accounting to budgeting and forecasting, and even managing labor.
Inn-Flow’s enhanced Budgeting & Forecasting tools, integrated with Accounting, help management companies simplify planning, align corporate and property teams, and gain portfolio-wide visibility. When paired with Inn-Flow Labor, now available on mobile, GMs and operators can stay aligned in real-time, while employees can easily view schedules, track PTO, and submit requests from their phones.
When your accounting, labor, and forecasting data flow together, your decisions become faster, cleaner, and smarter. That’s what clarity feels like.
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