First Hospitality identifies five hotel trends shaping the sector in 2027

First Hospitality, a national hotel operating, management and development company, has identified five trends shaping hospitality in 2027. Its outlook covers hotel operations, commercial strategy, restaurants, bars and guest experiences.

As traveller expectations evolve, the company expects successful hotels to combine operational innovation with distinctive dining. They will also develop curated local experiences while engaging guests and local communities. Moreover, the trends highlight links between operational performance, commercial creativity and experience-led hospitality. These priorities aim to create long-term value for hotel owners and memorable experiences for visitors.

Artificial intelligence will play a growing role in demand forecasting, labour optimisation and operational management. In addition, hotels will use AI to personalise guest experiences. However, technology will need to support hotel employees while preserving personal guest interactions.

First Hospitality recently introduced AI-powered virtual agents to manage routine guest calls. The technology provides immediate responses and directs more complex requests to hotel associates. Consequently, front desk teams can focus on guests and higher-value interactions.

At the company’s lifestyle property in downtown Columbus, two AI-powered virtual assistants handled 5,015 calls. They resolved half of those calls without human intervention. Calls averaged 38 seconds, with no waiting times. As a result, the system freed more than two days of front desk staff time.

Nick Johnson, Senior Vice President of Full-Service & Lifestyle Hotels at First Hospitality, said: “We see AI as an opportunity to enhance every aspect of hospitality, from how we operate our hotels to how we engage with our guests. Our AI-powered virtual agents are delivering natural, human-like interactions while providing guests with faster responses and eliminating unnecessary wait times”. He added: “We’re now piloting this technology at several additional hotels across our portfolio. Beyond operational efficiency, our focus is on using AI to better understand guest preferences and empower our teams to deliver more personalized, thoughtful experiences. Ultimately, our goal is to make every guest feel seen, valued, and genuinely cared for. Technology should enhance the human connections that make hospitality special, not replace them.”

Why are hotel restaurants becoming social destinations?

Hotel restaurants, bars and reimagined spaces are moving beyond their traditional role as guest amenities. Instead, hotels increasingly develop them as social destinations for travellers and local residents. These concepts include chef-led menus, innovative cocktails, experiential dining and events.

For example, First Hospitality recently launched a weekly Mahjong Series with SB Crack Club. The initiative takes place at the company’s California lifestyle property along the coast. It turns a traditional game into a social event where local residents can play, dine and meet.

The series also features a specially curated menu. It has generated more than 200% growth in daily revenue compared with a typical day. Furthermore, it has introduced the property to a new audience.

The property also hosted a murder mystery evening with THEY Improve. The event activated the lawn surrounding a historic landmark built in 1880. The site features more than five acres of gardens.

More than 75 guests attended the event. They enjoyed a chef-led menu during an interactive dinner themed around a “Poison Garden” murder mystery. The evening generated more than $10,000 in ancillary revenue.

Christina Santarelli, Senior Vice President of Marketing at First Hospitality, said: “Hospitality in 2027 will be about creating more value from every space and every guest interaction. We’re seeing an exciting evolution in how hotels approach their restaurants, bars, and social spaces, not simply as amenities, but as destinations that bring people together, connect with local communities, and create new opportunities for growth. The hotels that succeed will be those that embrace innovation while delivering brand-driven, personal experiences guests remember.”

How are hotel menus responding to changing preferences?

Food and beverage concepts also reflect changing consumer preferences. Hotel restaurants and bars are adapting menus around bold flavours, health-conscious choices and flexible portions. Meanwhile, beverage offerings are also evolving.

Guests increasingly choose smaller plates, ingredient-focused dishes and drinks that match individual preferences. Matcha remains popular, while hojicha is emerging as an alternative. In addition, zero-proof cocktails and bitter, vegetable-forward ingredients are gaining attention.

Hotels are also rethinking their food and beverage business models. Rather than relying mainly on overnight guests, properties increasingly seek local diners and neighbourhood customers.

At one First Hospitality lifestyle property in Indiana, the hotel has 93 rooms. An average of 30 to 45 overnight guests dine there for breakfast. Therefore, local customers remain essential to the restaurant’s business.

Also read → First Hospitality promotes Nadia Panasyuk to SVP of Revenue Management

Similarly, the company is developing restaurant concepts at a lifestyle property in Green Bay, Wisconsin. Its target is to generate 60% of business from local diners. The operating hours will also reflect customer demand.

Danny Py, Vice President of Restaurants & Bars at First Hospitality, said: “We’re looking at hotel food and beverage as an essential part of the overall business strategy, not simply an amenity for overnight guests. The opportunity is to create concepts that can stand on their own, give people a reason to visit regardless of whether they’re staying at the hotel, and become part of the local dining scene. That requires a more thoughtful approach to everything from concept development and design to staffing and hours of operation. As the industry faces continued pressure on labor and operating costs, the ability to create a distinctive dining experience while running an efficient business will be what separates successful hotel restaurants from the rest.”

How are hotels expanding into wellness and community experiences?

Guests increasingly seek experiences that support physical wellbeing and meaningful social connections. Consequently, hotels are expanding beyond accommodation into wellness-focused destinations. Their programmes increasingly target overnight guests and local communities.

By integrating wellness into daily activities, food and beverage services, and social events, hotels can attract new audiences. These initiatives can also strengthen local relationships and generate revenue beyond room bookings.

At a lifestyle property in Sedona, First Hospitality uses the destination’s natural surroundings and spiritual character. The hotel offers a programme of activities for guests and local residents. These include daily sunrise meditation and yoga overlooking Sedona’s red rocks.

The programme also features weekly restorative sound baths and nightly moonrise ceremonies. The latter include a tequila sipper. In addition, activities include Saturday stargazing and interactive palmistry classes.

Live music takes place seven days a week. Together, these activities position the property as a gathering place for wellness, hospitality and community experiences.

The live music programme also generates additional food and beverage revenue. It doubles the average guest check. Meanwhile, destination-inspired activities strengthen guest engagement and encourage local visits and repeat business.

Jared Heglin, Vice President of Full-Service & Lifestyle Hotels at First Hospitality, said: “Wellness is no longer just an amenity; it’s becoming a key factor in how guests choose where to stay. We’re creating destination-inspired experiences that bring travelers and locals together that extend beyond a traditional hotel stay. Looking ahead to 2027, hotels have an opportunity to become year-round wellness hubs that strengthen community connections, drive guest loyalty, and create new revenue opportunities.”

What will value-conscious travel mean for hotels in 2027?

First Hospitality expects travel demand to remain resilient in 2027. However, travellers will become more selective about spending. Rather than abandoning trips, consumers will prioritise meaningful experiences and seek better value.

This shift already appears in the company’s portfolio. Holiday bookings are pacing 20% ahead of last year. Meanwhile, room rates are trending approximately 6% higher.

Select-service hotels are outperforming full-service and lifestyle properties. This performance indicates stronger demand for more budget-conscious accommodation. Nevertheless, travellers continue to seek opportunities to explore destinations and connect with local experiences.

Booking patterns are also changing. Some travellers are reserving accommodation earlier for peak holiday periods to secure favourable rates. At the same time, shorter booking windows and last-minute demand surges continue to influence other travel occasions.

Therefore, hotels will need to balance value, flexibility and distinctive guest experiences. Travellers increasingly consider the overall value of a trip rather than choosing accommodation solely by room rate.

Nadia Panasyuk, Senior Vice President of Revenue Strategy at First Hospitality, said: “Higher gas prices aren’t stopping Americans from traveling; they’re changing how they travel. Consumers are becoming more strategic about choosing destinations, weighing the cost of driving versus flying, booking earlier, and maximizing loyalty benefits. The desire to travel remains strong, but getting the most value out of every trip is becoming increasingly important.”

First Hospitality’s five trends cover technology, food and beverage, wellness, community engagement and travel spending. The company expects these areas to shape hotel operations and commercial strategies in 2027.

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