U.S. Hotels Grapple with Skyrocketing Costs and Staffing Hurdles Despite Steady Travel Demand

A survey by the American Hotel & Lodging Association indicates that hotel owners continue to face rising operating costs and staffing challenges, with most expecting travel demand in 2026 to remain steady compared to the previous year.

A new survey from the American Hotel & Lodging Association (AHLA) finds that hotel owners and operators across the United States continue to face rising costs for supply, labor, insurance, and energy as the industry prepares for major events such as the 2026 FIFA World Cup. The survey, conducted in late February 2026 and based on responses from 246 hoteliers, highlights ongoing financial and staffing challenges.

Operating costs remain the most significant challenge for hotel owners. The most frequently cited financial pressures are the cost of goods and supplies (71%), labor costs (65%), fluctuating demand and occupancy (59%), utility and energy costs (50%), insurance premiums (43%), and workforce shortages (42%).

More than half of respondents report their properties are somewhat or severely understaffed. To recruit and retain employees, hotels are offering higher wages (70%), flexible scheduling (54%), hotel discounts (54%), and enhanced benefits (31%).

Looking ahead, 39% of respondents expect travel demand in 2026 to remain relatively stable compared with 2025, while 29% expect it to be somewhat stronger and 6% expect it to be much stronger. Nearly 20% of applicable properties report that 2026 bookings are currently below expectations as hotels begin tracking early booking trends for the FIFA World Cup.