AI, Local Dining and Value-Conscious Travel Could Shape Hotels in 2027, According to First Hospitality

AI in hotel operations

First Hospitality expects hotels to use artificial intelligence more widely for demand forecasting, staffing, routine operations and guest service. The company says the technology can handle some tasks while leaving employees available for requests that require human assistance.

At a downtown Columbus lifestyle property, two AI-powered virtual assistants handled 5,015 calls and resolved half without human intervention, according to the company. Calls averaged 38 seconds, with no hold times, and the system freed up more than two days of front-desk staff time. The company did not specify the period over which the calls were measured.

Nick Johnson, senior vice president of full-service and lifestyle hotels, said First Hospitality is testing the technology at several additional properties and wants to use AI to better understand guest preferences.

Hotels seek local visitors

The company expects hotel restaurants, bars and other spaces to place greater emphasis on attracting local residents as well as overnight guests. Events and dining programs can give people a reason to visit without booking a room.

At a coastal California property, First Hospitality partnered with SB Crack Club on a weekly mahjong series. The company said daily revenue during the series grew by more than 200% compared with a typical day.

The same property hosted a murder mystery dinner with THEY Improve on the lawn surrounding a historic landmark. More than 75 guests attended, and the event generated over $10,000 in ancillary revenue, according to the company.

Christina Santarelli, senior vice president of marketing, said hotels are increasingly treating restaurants, bars and social spaces as destinations in their own right.

Wellness programs throughout the year

First Hospitality expects hotels to expand wellness activities for guests and local residents. Such programs can include exercise, meditation, food and social events rather than being limited to conventional spa services.

At a Sedona property, the company offers daily sunrise meditation and yoga, weekly sound baths, nightly moonrise ceremonies, Saturday stargazing and palmistry classes. The property also has live music seven days a week.

First Hospitality said nightly live music doubles the average guest check, though it did not provide further details about the comparison. Jared Heglin, vice president of full-service and lifestyle hotels, said wellness is becoming a factor in guests’ decisions about where to stay.

Travelers weigh costs and timing

The company expects travel demand to remain resilient in 2027, while travelers pay closer attention to the value of their trips. It said consumers may compare destinations and transportation costs, use loyalty benefits and adjust when they book.

Across First Hospitality’s portfolio, holiday bookings were pacing 20% ahead of the previous year, with room rates approximately 6% higher, the company said. It did not specify the holiday period or measurement date.

The company also reported that select-service hotels were outperforming full-service and lifestyle properties, which it said could indicate a shift toward more budget-conscious travel. Some travelers are booking earlier for peak holidays, while shorter booking windows and last-minute demand remain common for other trips.

Restaurants adjust menus and hours

First Hospitality expects hotel restaurants and bars to respond to demand for smaller portions, health-conscious dishes and a wider range of drinks. The company cited matcha, hojicha, alcohol-free cocktails and vegetable-forward ingredients among the options operators may consider.

Local diners are also important to hotel restaurant planning. At a 93-room lifestyle hotel in Indiana, an average of 30 to 45 overnight guests eat breakfast at the property, according to the company. In Green Bay, Wisconsin, First Hospitality is developing restaurant concepts with a goal of drawing 60% of business from local diners and adjusting operating hours to demand.

Danny Py, vice president of restaurants and bars, said hotel dining operations must consider staffing and operating costs alongside menu and concept development.