Hotel CEOs warn of labor unrest, brand fatigue and tariff turbulence

As 2025 winds down, industry leaders at The Lodging Conference voice growing concern over strikes, brand saturation and rising costs

At The Lodging Conference in Phoenix, executives from Highgate, Peachtree Group, Sonesta Hotels, Marriott, and others outlined the top challenges shaping hospitality’s near future — from union strikes and brand bloat to unpredictable tariffs and diverging market performance between the U.S. and Canada.

Key takeaways

• Union labor unrest: Hotel CEOs warned that coordinated union activity across U.S. cities — from Los Angeles to New York — could disrupt hotel operations, with major contract expirations and possible strikes expected by mid-2026.
• Wage escalation pressure: Local initiatives such as Los Angeles’s $30 minimum wage for hospitality workers are influencing similar demands in other cities, putting upward pressure on labor costs nationwide.
• Brand proliferation fatigue: Executives admitted that both investors and guests struggle to differentiate between the growing number of hotel brands, with some arguing that over-segmentation confuses consumers and dilutes brand value.
• Performance divergence: Canada’s hotel sector recorded record-breaking occupancy (over 80%) and RevPAR gains this summer, while the U.S. market saw a mild year-over-year decline amid economic uncertainty and lower international demand.
• Tariff unpredictability: Trade policy swings have driven up costs for building materials, furniture, and food and beverage — and the constant policy changes make long-term planning difficult for hotel developers and operators.
• Growth opportunities north of the border: With strong domestic travel and undersupplied markets, Canada is emerging as a key development target for U.S. hotel groups seeking stable returns.

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