WASHINGTON, D.C. [March 17, 2026] — Rising operating costs and ongoing staffing challenges remain top concerns for hotel owners nationwide, even as most expect travel demand in 2026 to remain steady compared with last year, according to a new survey from the American Hotel & Lodging Association (AHLA).

The survey of hotel owners and operators across the country highlights continued pressure from higher supply, labor, insurance, and energy costs as the industry prepares for major global events, including the 2026 FIFA World Cup.

“Hoteliers are resilient, but the cost pressures they’re facing are very real,” said Rosanna Maietta, president and CEO of AHLA. “From rising insurance and energy expenses to workforce shortages, hotels are navigating significant operational challenges. As the U.S. prepares to host global events like the World Cup, ensuring hotels have the workforce and resources they need will be critical to maintaining America’s leadership in travel and tourism.”

Hotel owners say operating costs remain their biggest challenge. The most frequently cited financial pressures include:

• Cost of goods and supplies (71%)
• Labor costs (65%)
• Fluctuating demand and occupancy (59%)
• Utility and energy costs (50%)
• Insurance premiums (43%)
• Workforce shortages (42%)

Staffing shortages also persist across the industry. More than half of respondents report their properties are somewhat or severely understaffed. To recruit and retain employees, hotels are offering a range of incentives, including higher wages (70%), flexible scheduling (54%), hotel discounts (54%), and enhanced benefits (31%).

Travel Demand Expected to Hold Steady

Looking ahead, 39% of respondents expect 2026 demand to remain relatively stable compared with 2025 while 29% expect it to be somewhat stronger and 6% expect it to be much stronger.

With matches scheduled across the United States during the upcoming FIFA World Cup, many hotels are also beginning to track early booking trends. Nearly 20% of applicable properties report bookings currently below expectations for 2026.

Methodology: AHLA’s Front Desk Feedback survey of 246 hoteliers was conducted late February 2026.

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About AHLA

The American Hotel & Lodging Association (AHLA) is the largest hotel association in America, representing more than 30,000 members from all segments of the industry nationwide – including iconic global brands, 80% of all franchised hotels, and the 16 largest hotel companies in the U.S. Headquartered in Washington, D.C., AHLA focuses on strategic advocacy, communications support, and workforce development programs to move the industry forward. Learn more at www.ahla.com.