Each year, the Lodging Conference serves as a barometer for the state of the hospitality industry — a place where optimism meets reality, where data meets design, and where the industry’s brightest minds gather to chart the path ahead. The 2025 conference was no exception.

While conversations around tariffs, inflationary pressures, and market uncertainties remained front and center, the overarching tone was one of resilience and renewal. The hospitality sector continues to evolve — not just adapting to global shifts but, in many ways, redefining what the future of travel, service, and design will look like.

At R-W, we left the conference with renewed confidence in the industry’s long-term strength, buoyed by signs of progress across financing, development, and innovation.

1. Confidence Is Returning — and It’s Real

Perhaps the most encouraging theme to emerge from the 2025 Lodging Conference was that confidence is quietly, but steadily, returning to the market.

After several years of uncertainty, banks and lending institutions are regaining confidence in hospitality lending. While underwriting remains cautious, the tone has shifted from hesitation to selective optimism. Debt and equity partners are beginning to re-engage, particularly for well-structured projects in markets with strong demand fundamentals.

Developers, meanwhile, are learning to navigate the “new normal” — balancing construction costs, interest rates, and longer lead times with creativity and discipline. As one panelist noted, “We may not be fully out of the woods, but we’re walking in the right direction — and this time, we brought a map.”

2. Growth in Secondary and Tertiary Markets

Another highlight of this year’s discussions was the continued rise of secondary and tertiary markets, particularly for boutique and lifestyle-driven projects.

Places like Fredericksburg, TX, Greenville, SC, and Bend, OR are becoming vibrant hospitality destinations — blending local charm with elevated guest experiences. These markets offer developers compelling opportunities: lower land costs, less saturation, and communities eager for well-conceived, locally integrated projects.

This shift reflects a broader evolution in traveler behavior. Today’s guest is seeking connection, authenticity, and convenience — and boutique projects in smaller markets are uniquely positioned to deliver all three.

3. Technology and AI Are Shaping Tomorrow’s Guest Experience

If one topic dominated the forward-looking panels, it was technology — particularly artificial intelligence and its growing role in shaping the guest journey.

We’re standing at the edge of what could be the most significant transformation in hospitality since the introduction of online booking. Imagine a near future where a guest can plan their entire trip — book flights, reserve hotel rooms, order their favorite meal, schedule activities, and have everything coordinated and delivered seamlessly — all from a single universal platform, with just a couple of clicks.

This vision of a two-click travel experience is not science fiction; it’s a fast-approaching reality. AI will help personalize every aspect of travel, learning a guest’s preferences and curating an experience tailored specifically to them — from the pillow they sleep on to the playlist that greets them when they arrive.

While the technology will continue to evolve, what’s clear is that the future of hospitality is both human and intelligent. The industry’s greatest opportunity lies in leveraging innovation to enhance, not replace, the personal touch that defines true hospitality.

4. Extended Stay, Multi-Family, and Mixed-Use: The Power of Integration

Another bright spot from the conference was the continued strength of extended-stay, multi-family, and mixed-use developments.

Extended-stay properties continue to outperform, appealing to a diverse guest base — from business travelers on long assignments to leisure guests seeking more space and flexibility. This segment’s stability and resilience have made it a favorite among investors and operators alike.

At the same time, multi-family and mixed-use projects are emerging as powerful platforms for community-building. The lines between residential, hospitality, and workspaces continue to blur — and developers are recognizing the value of integrated environments where guests, residents, and locals coexist seamlessly.

For R-W, this trend aligns with the diversity of our own portfolio and the collaborative nature of our work. We’re proud to contribute to developments that go beyond a single function, creating dynamic, multi-use environments that serve both travelers and communities.

5. The Importance of Diversification

A recurring takeaway from the Lodging Conference was the importance of diversification — not just for portfolios, but for businesses themselves. In a rapidly changing market, adaptability is key.

R-W is proud to embody this principle. While we have deep roots in hospitality — partnering with leading brands and ownership groups across the country — our expertise extends far beyond hotels. Our project experience spans restaurants, higher education, multi-family and mixed-use developments, senior living, sports arenas and event venues, coworking spaces, airports, and more.

This diversity gives us a unique perspective. It allows us to draw insights from multiple industries, applying creative procurement and design solutions that add value across sectors. It also helps us remain nimble — prepared to meet the moment, whatever the market brings next.

6. A Balanced Outlook for 2026 and Beyond

As the conference concluded, one message resonated clearly: cautious optimism is still optimism.

Yes, there are challenges — tariffs, material costs, and ongoing supply chain complexities continue to test even the most experienced teams. But there’s also a renewed sense of purpose, partnership, and possibility.

Developers are moving forward with intentionality. Lenders are re-engaging. Travelers are back — and they’re more experience-driven, more flexible, and more connected than ever before. Technology is expanding what’s possible, and creativity continues to define how we deliver it.

The road ahead won’t be without twists, but the industry is driving forward with both confidence and compassion — and that’s something worth celebrating.

Looking Ahead

At R-W, we’re inspired by what we heard and saw at the 2025 Lodging Conference. The hospitality industry is, at its core, about connection — and the conversations this year reminded us that even amid uncertainty, our shared commitment to service, innovation, and collaboration continues to shine through.

As we look toward 2026 and beyond, our focus remains the same: to be a trusted partner to our clients across hospitality and beyond — helping deliver thoughtful, efficient, and beautifully executed projects that maximize Owner assets while enhancing the guest experience and strengthening the communities we serve.

In a world where change is constant, hospitality remains timeless — and its future has never looked more exciting.