Independent hotels face mounting pressure on multiple fronts

Rising costs, staffing shortages, technology demands, and cybersecurity risks are creating a widening gap between independent hotels and larger chains

European hoteliers are entering 2026 with confidence. According to Booking.com’s 2026 European Accommodation Barometer, most accommodation providers expect business conditions to remain positive over the next year, supported by solid occupancy levels and stable financial performance.

Yet beneath the optimistic outlook, the report reveals a growing divide within the industry. Large hotel groups continue to outperform independent properties across key metrics, including occupancy growth, room rates, technology adoption, and cybersecurity preparedness. For many smaller hotels, the challenge is no longer simply attracting guests — it is staying competitive in an increasingly digital marketplace.

One caveat: the survey was commissioned by Booking.com, whose customer base is heavily weighted toward independent hotels and smaller accommodation providers. This may amplify the challenges facing independents relative to large hotel chains, so the findings should be viewed through that lens.

Key takeaways

• Confidence remains high: Two-thirds of European accommodation businesses expect positive business development over the next 12 months, reflecting continued resilience in travel demand.
• Occupancy growth supports profitability: Half of surveyed properties reported higher occupancy levels compared to the previous year, helping to strengthen overall financial performance.
• Chains are pulling ahead: Large hotel groups reported stronger occupancy growth, higher room rates, and greater business confidence than independent hotels.
• Technology is becoming a competitive advantage: Larger operators continue to invest heavily in digital tools, automation, and guest-facing technology, while many smaller properties struggle to keep pace.
• Cybersecurity is now a hotel business issue: The rise of AI-powered scams and cyber threats is increasing pressure on hotels to strengthen security measures, staff training, and operational safeguards.
• Event-driven travel creates opportunities: Many hotels reported benefiting from concerts, sporting events, festivals, and conferences, which helped drive demand during traditionally slower periods.
• Independent hotels face growing challenges: Smaller operators remain more vulnerable to rising costs, staffing shortages, technology investments, and cybersecurity risks.
• Competition is shifting beyond demand: For many hotels, success is increasingly determined by technology adoption, operational efficiency, and the ability to adapt to changing traveler expectations rather than simply attracting guests.
• Digital resilience is becoming essential: Maintaining online visibility, strengthening digital capabilities, and investing in operational resilience may soon be as important as revenue management and marketing for independent hotels.
• The industry outlook remains positive: Despite economic uncertainty and operational challenges, European hoteliers continue to demonstrate confidence in the sector’s long-term growth prospects.

Source: Booking.com

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