Uncertainty is bad for business

U.S. hotel leaders warn that constant policy shifts and volatile markets are disrupting travel demand and development — even as optimism builds for 2026

At The Lodging Conference in Phoenix, hotel executives voiced frustration over persistent uncertainty — from tariffs to political tensions — that continues to disrupt planning, travel demand, and development. Yet amid the volatility, many see 2026 as a year of renewed opportunity for acquisitions and growth as capital returns to the market.

Key takeaways

• Economic unpredictability: Hotel leaders cited constant policy changes and trade tensions as major obstacles to planning and executing development projects.
• Tariffs disrupt planning: Frequent new tariffs and political comments affecting materials and imports make it difficult to manage costs and timelines, said Marriott’s Leeny Oberg.
• Decline in Canadian travel: Travel from Canada to the U.S. dropped more than 20% this year, largely attributed to political rhetoric, impacting cross-border tourism and hotel revenues.
• Uneven business travel recovery: Corporate travel has rebounded in some regions but remains sluggish in others, particularly the Bay Area, adding to the industry's uneven recovery.
• Capital waiting on sidelines: Despite muted hotel transaction activity in 2025, executives report large amounts of capital ready to re-enter the market, signaling potential for strong deal activity in 2026.
• Buying opportunities emerging: CEOs from Highgate and Apple Hospitality REIT emphasized that current uncertainty offers rare chances to acquire undervalued assets and position portfolios for future growth.
• Measured optimism: While 2025 has been a turbulent year, leaders expect strengthening economic conditions, improved capital markets, and selective investment strategies to drive a more stable 2026.

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