The Modern Hotelier #257: Losing the $150 Hotel Room, Hotel Investments in 2026, Airbnb World Cup Push, and More | Hospitality Hot Topics
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Steve Carran: Welcome to another episode of Hospitality Hot Topics by The Modern Hotelier. We're going to review a few things that happened in February in the hospitality industry. Don't forget to like, follow, and subscribe, and let us know in the comments what you think about this episode today. We're joined by David and Jon for this conversation. How are we doing today, guys?
David Millili: Good.
Jon Bumhoffer: Good.
Steve Carran: So let's dive in right away. One of the topics we're talking about today is that the $150 hotel room is no longer a thing. What we're seeing over the past few months to a year is that mid-priced hotel rooms, $120 to $150 a night, are now more like $130 to $160 a night due to inflation and higher operating costs. David, I'll kick it off with you first. What are our thoughts here about the $150-a-night hotel room being gone?
David Millili: Yeah, I think we feel it. As we travel as a team, we always do research on hotels. We do hotel experience tours. We look at whether we should do Airbnb or stay at a hotel, and I don't see any, especially in major markets, even close to $150. For me, this wasn't a surprise. It seems that soon the $200 hotel room is going to go away too.
Steve Carran: You're right. In cities like Miami, New York, Boston, those rooms average around $200–$300.
Jon Bumhoffer: Yeah, I think you're right. We haven't seen anything lower than that; the $150 is kind of gone. There are a couple of reasons from my perspective. We talk a lot about independent and luxury hotels, and our next topic is luxury is booming.
Looking for Airbnbs, a lot of people who would normally go for mid-scale hotels looked at Airbnb as a cheaper or more unique option in a different location. So mid-scale is kind of overlooked now. Investors focus on luxury, consumers look at Airbnb, and now some are getting priced out of Airbnb. Mid-scale isn't really cheaper anymore. I wonder if there’s an opportunity to design something more intentional in this market space because right now it seems forgotten.
Steve Carran: Jon, do you think this newer market is relying more on technology and AI automation, since some of the reasons costs are going up are due to labor costs?
Jon Bumhoffer: In those types of hotels, you're probably not getting a pool. Breakfast might be included in some. From an operations perspective, you probably need to reduce staffing to make the numbers work and stay in that $150-ish range. Automation and staff reduction are probably the only ways it works. The article mentions that anything in this market tends to be bland corporate boxes. So the question is, is there a way to provide something more unique, and are people even looking for that at this price point?
Steve Carran: Sure.
Jon Bumhoffer: Maybe not.
Steve Carran: Yeah.
Jon Bumhoffer: So we talked about the hotel operations perspective for hitting the $150-a-night mark. But if you're looking for a midscale hotel, what are some things you can do? The article mentioned a couple of things. One I saw and didn’t know is that Hilton and Marriott offer a price match.
If you find a hotel room on Expedia or Booking.com, you can call the hotel and say, “Hey, this is the rate. Will you price match?” Apparently, they will and also apply a 25% discount to that rate. I haven’t tried it myself, but that’s what’s stated. So maybe that’s an option—call the hotel and get an extra discount on top of a third-party rate.
David, you have thoughts on looking for rooms?
David Millili: Yeah, it sounds counterintuitive to have to call rather than book online, since everyone says you get the best rate online. But from the industry perspective, if you call the hotel and get the right agent, they may give you a discount or better rate. Independents don’t have a set policy like Hilton or Marriott, but they might upgrade your room.
Believe it or not, I’ve used Expedia packages, and hotels sometimes put people who book through Expedia or Booking.com in the worst rooms available, unless sold out. You might get a room near the elevator, mechanical room, or ice machine versus booking direct.
Jon Bumhoffer: Yeah, if you’re looking for a same-night room, calling helps. Hotels often have unsold rooms, and depending on the person you speak to, you might get a discount.
David Millili: Alright, as you look for a room, global hotel investments are surging this year. Looking back at February, do you think this will hold, or will the current state of the world slow this down?
Steve Carran: Good question. I’m curious how the climate will affect things. But with events in the U.S. this year—the World Cup, the 250th anniversary—travel will be driven. The luxury segment has momentum going into this year and isn’t slowing. The wealthy are getting wealthier and want high-end travel and experiences, and investors see that too. Luxury and experiential travel will carry the market.
The JLL article mentions easier financing and high investor confidence, so I think it will keep going. Jon, what do you think?
Jon Bumhoffer: I think you’re right; those are reasons it should keep going. But the political climate and geopolitics could muddy the picture. That affects everything from supply chains to material pricing. That’s the elephant in the room.
Luxury is the bell of the ball for investors. That’s why midscale and other segments are overlooked—luxury properties are sexier and have better margins. Independent boutique hotels are exciting, but that focus may explain the trend we discussed earlier.
David, going forward, do you think this trend will hold?
David Millili: I think they’ll have to rewrite the article. High-end luxury will continue, but global hotel investments might see a pause during instability. My guess is we’ll see some pullback as the world situation plays out, but hopefully, the money keeps flowing.
Steve Carran: The United CEO said airline travel is going up. Oil is about twice as high, so will travel be for the rich and famous this year? Not many can afford to fly. We’ll see.
Jon Bumhoffer: My thought is, is the World Cup coming? Is that really going to carry investments? At this point, new investments for the World Cup are likely already in place and being built. So that might not even be a variable in this equation.
Steve Carran: We'll see how this turns out.
Jon Bumhoffer: Speaking of the World Cup and investments for infrastructure and lodging, Airbnb is offering a $750 credit to first-time hosts to help during the World Cup. What do you guys think about that initiative?
David Millili: It’s a smart move. We’ve had the World Cup here before, and this time it’ll be in New York, New Jersey, Boston, and Los Angeles. The hotel inventory can’t really accommodate the demand. There are other events and corporate travel to consider. It gives people the incentive to rent their homes—maybe go on vacation themselves—and make extra money. Smart move by Airbnb.
Steve Carran: I agree. It’s a smart move. I was shocked by the World Cup numbers. It’s expanding from 32 to 48 teams this year, with 104 matches. About 1.3 million people will come to the U.S., staying roughly 12 days and spending $7.5 billion during the tournament. Forty percent of attendees will be from outside the U.S. This is a huge opportunity for host cities to gain international spotlight and revenue. Airbnb clearly sees this and is capitalizing on it.
Jon Bumhoffer: Exactly. The number of people and length of stay makes this event unique. Limited infrastructure can’t fully support that, and many don’t want to stay in a hotel room that long. They want a kitchen, living area, and more space. Airbnb meets that need, unlike small hotel rooms in some of these markets.
Steve Carran: I agree. We stayed at a Mint House in Denver, and this is a prime opportunity for long-term, apartment-style stays. You might want to grocery shop or cook one night instead of eating out for 12 nights. This is ideal for those stays.
David Millili: Well, we’ve made it this far without mentioning AI, but now is the time. Hotels are moving away from fixed packages and leveraging AI for personalization. Traditional packages with breakfast or parking are being replaced by more personalized options. Jon, how do you see AI being used in hotels now?
Jon Bumhoffer: It makes sense. Hotels used to have many packages on their websites, which overwhelms consumers. Instead, they’re offering add-ons at booking. You can build your own package—pick what you want instead of choosing from pre-set packages. Between 30–40% of people are using AI to search for options or curate itineraries. AI simplifies personalization for consumers and helps hotels clean up content. Both sides benefit.
Steve Carran: Absolutely. On a recent podcast, Roanna, CEO and President of AHLA, talked about dynamic scheduling—dynamic packages. Personalization is huge right now. This approach allows hotels to personalize packages without heavy legwork. Travelers change—someone may travel differently now than two months ago—so AI packages can adapt to that. I love it. Leaning into technology creates a better guest experience and more revenue. David, what do you think?
David Millili: Yeah, I agree. It’s going to be interesting to see how the technology actually works. AI tailoring makes sense, but will the CRSs and booking engines be able to adopt and leverage AI to actually fulfill bookings versus it being piecemealed together? That’s what I’m curious about.
Why should I be told I have to take a breakfast or spa package when maybe I want both, or none, and just want parking or something else? I’m curious to see who emerges from a technology standpoint to actually fulfill those bookings.
Steve Carran: Good point. This year, we’ve kicked off travel. David and Jon, you’ll be on the road soon. David, you just got back from ITB. How was it?
David Millili: For those who’ve never been, ITB is a bucket-list event. If you’re in hospitality and travel, it’s one event you need to attend. It’s huge, with a facility built over years—upstairs, downstairs, big halls with high ceilings, low halls with narrow aisles.
It combines technology vendors, countries, and hotels. When talking to John Burns about events, I said it’s one of the few events where you actually get business done. This year marks its 60th anniversary, longer than HITEC. It’s a must-see event.
Jon, what do you think about upcoming events like Hunter and Hoan?
Jon Bumhoffer: I’m excited. Hunter is next week in Atlanta. It’ll be our first time, and I’m curious to see what it’s like. David, any insights on Hunter?
David Millili: It’s our first time because they’re expanding into technology. Traditionally, it’s heavily branded and operator-focused. We’re fortunate to be an event partner for the 37th Annual Hunter Conference, with a great spot on the floor.
Steve, you’ve been to Hoan. John and I haven’t. What should we expect?
Steve Carran: I love Hoan. The first time I went, I was shocked at how big the trade show is. It’s a great event, and business does get done there. I won’t be able to attend this year, but David, since it’s near your hometown, you’ll probably get some family time in. Hoan will be great, and I’m excited about the partnership.
Jon Bumhoffer: It’s fun to have a couple of first-time events on our docket. After that, we have the Independent Lodging Congress in Boston and the Direct Booking Summit in Mexico City. I’m excited to visit these cities and attend these events.
David Millili: What’s important is that three of these four events are partnerships, which is exciting. We’ll partner again with ILC and the Direct Booking Summit in Mexico City for a second year. These are exciting events coming up.
That wraps up another episode of The Modern Hotelier: Hospitality Hot Topics for February. We are hospitality’s most engaged podcast. Whether you’re watching or listening, we appreciate you and hope to connect again soon. Thanks for watching.