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Hotels Shift Away from Traditional Packages in the AI Era
IHG Enters the U.S. Market with Ruby Brand
IHG and Ruby Group are launching the Ruby brand in the United States, marking a new phase of expansion for the European lifestyle hotel concept. The move brings Ruby’s design-led, flexible spaces to major U.S. cities for the first time. The brand emphasizes social spaces and community feel over traditional room-centric models. This launch supports IHG’s strategy to diversify its portfolio with lifestyle options that appeal to modern travellers. Industry watchers see it as part of a broader trend toward boutique and hybrid hospitality experiences. Read more.
2025 Major U.S. Hotel Sales Show Mixed Signals
The 2025 Major U.S. Hotel Sales Survey shows active transactions but a more cautious lodging market, with stable overall sales volume and softer average sale prices per room. The number of trades increased and total transaction value saw modest growth, even as revenue per available room (RevPAR) softened. Economic headwinds like high costs and labor challenges continue to put pressure on profit margins. Investors are adapting by embracing AI tools to optimize operations and discoverability. Outlook for 2026 suggests modest growth but with continued caution amid supply outpacing demand. Read more.
U.S. Hotel Construction Pipeline Remains Strong
The U.S. hotel construction pipeline closed Q4 2025 with more than 6,100 projects and over 720,000 rooms in various stages from planning to construction. Upper midscale and upscale hotels dominate the pipeline, but midscale and luxury sectors also show growth. Brand conversion and renovation projects reached a record high, reflecting owners’ desire to refresh existing inventory. New builds continue at pace, with almost 2,200 rooms set to begin construction in the next year. Analysts expect hotel supply to expand steadily through 2026. Read more.
Hotels Shift Away from Traditional Packages in the AI Era
Many hotels are reducing or rethinking package deals as guests increasingly use AI tools and travel planners to customise trips. Hoteliers at a recent roundtable noted that too many bundled offers can overwhelm travellers. Instead, some properties are turning packages into optional add-ons, letting guests build their own experiences. AI travel assistants are making personalised choices easier, which challenges old-style room-plus-amenity bundles. This trend suggests hotels want clearer, more flexible offers that work with guest preferences. Read more.
Choice Hotels Posts Record International Growth in 2025
Choice Hotels International reported strong international expansion in 2025, with nearly 160,000 rooms outside the U.S., a 13% year-over-year increase. Extended-stay hotels domestically also hit record growth with 66 new openings. The company expanded into new markets including Australia and Poland and strengthened its presence in Canada and Latin America. Upscale and core brands also saw development gains, with new franchise agreements awarded. This global push reflects the company’s strategy to diversify and grow positioning around the world. Read more.
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