Hotels & Motels NAICS 721110

Sep 30, 2025 - Biometric Access Gaining Ground at Hotels

• Hotels are increasingly adopting biometric access systems, such as fingerprint or facial recognition, to enhance security and streamline guest experiences. These systems offer a contactless, keyless entry, reducing the need for physical key cards and minimizing the risk of unauthorized access. They also facilitate smoother check-in processes, allowing guests to bypass the front desk and proceed directly to their rooms. For hotel operators, biometric systems can improve operational efficiency by reducing key-related issues and enhancing guest satisfaction. However, implementing such technology requires careful consideration of privacy concerns, data security, and compliance with regulations. As the hospitality industry continues to evolve, the integration of biometric access systems represents a significant step toward modernizing hotel operations and meeting the expectations of more tech-savvy travelers.
• The hotel industry is grappling with a challenging balance between revenue growth and escalating costs, according to hotel benchmarking company HotStats. While revenue per available room continues to rise, labor expenses are outpacing these gains, leading to smaller profit margins. Hotels that achieved at least a 5% year-over-year total revenue per available room growth (guest spending on everything, not just the room) managed to maintain profitability, whereas those with lower growth experienced declines in gross operating profit per available room. Luxury and ultra-luxury properties are better positioned, leveraging diversified revenue streams such as food and beverage and ancillary services to offset rising costs. Additionally, expenses in areas like repairs and maintenance and utilities are increasing faster than revenues, further squeezing margins. To navigate these pressures, hoteliers must adopt strategic approaches including optimizing operational efficiencies and diversifying revenue sources to sustain profitability.

• Hotel investor transaction volume increased 3.9% year over year in the first half of 2025 to $9.7 billion, per JLL’s US Hotel Trends Investment Report, although the total number of hotel transactions actually fell 6.7%. Luxury hotels and properties in urban areas performed particularly well thanks to a shift towards high-priced accommodations by travelers. JLL warned of headwinds ahead for the hotel investment sector, particularly falling revenue per available room (RevPAR) rates with consumers pulling back on discretionary spending. Practically every big hotel company posted either flat or declining RevPAR in Q2, including Hilton, Choice Hotels, Wyndham Hotels & Resorts, Marriott, and Hyatt. Hotel CEOs attributed the RevPAR drop to overall economic uncertainty, tariffs, and a 2% drop in corporate travel amid government budget cuts and weak inbound international travel from backlash against US immigration policies.
• A recent $9.5 million court settlement between online travel agency (OTA) umbrella company Bookings Holdings and the state of Texas demonstrates a willingness by regulators to crack down on junk fees in hotel bookings. Bookings, owner of OTA sites including Priceline.com and Kayak.com, was accused of hiding questionable costs like resort, amenity, and utility fees into a single, vague, “Taxes and Fees” line item. In addition to the monetary payment, Bookings has to disclose any added fees clearly and upfront. The case could be a bellwether of the effectiveness of the Federal Trade Commission’s 2025 Junk Fees Rule, which mandates added fees be clearly communicated to customers in the hotel and live entertainment industry. The rule in effect ends junk fees for those industries, with the Texas case being the first high-profile use of the new rule.