none-refined-hospitality-solutions-ds9nt

The 2026 Hotel Market: Stronger Demand, Tighter Margins, and Why Capital Planning Matters Now

Fri, 23 Oct 2026 09:28:30 GMT

Hotel performance beat expectations in 2026, but rising costs and debt pressure make every capital dollar count.

The U.S. hotel market had a better 2026 than most forecasters expected. In August, CoStar and Tourism Economics raised their full-year outlook, now calling for RevPAR growth of about 4.4% and ADR growth of about 3.1%, with occupancy around 63%. Strong leisure and business travel, helped by the World Cup and America 250 celebrations, pushed the industry to sell roughly 11.4 million more room nights in the first half of the year than the year before.

That is good news. But it is not the whole picture.

Revenue is up. So are expenses.

The same forecast warned that operating expenses are expected to grow faster than inflation through 2026 and 2027, and that second-half growth will lean mainly on rate rather than occupancy. For owners, that means top-line gains can be quietly eaten by labor, insurance, utilities, and maintenance costs.

Debt and PIP pressure are real

Many owners are also refinancing into a very different interest-rate environment. Industry analysts point to a large wave of hotel CMBS maturities across 2025 and 2026, with many borrowers facing debt costs in the 6–7% range after refinancing. At the same time, brands that granted PIP deferrals in prior years are expecting that work to get done.

The result: brand-required Property Improvement Plans have become one of the biggest financial decisions an owner makes this cycle. Done well, a PIP protects the flag, guest scores, and asset value. Done poorly — over budget, behind schedule, or disruptive to guests — it can erase a year of revenue gains.

What smart owners are doing now

Treating capital as a plan, not an emergency. Deferred maintenance tends to turn a manageable refresh into a full PIP. Steady reinvestment is almost always cheaper.
Focusing scope on what guests notice. Guest rooms, bathrooms, lobbies, and connectivity drive scores and rate. Spend there first.
Phasing the work. Renovating in room blocks or floors, timed to slower periods, keeps inventory and revenue online.
Negotiating with the brand. Owners with a good track record and clear documentation can often negotiate scope, timelines, or phased execution.
Choosing a contractor who protects the budget. Pricing transparency, written change control, and on-time delivery matter more than ever when margins are tight.

The bottom line

Demand is healthy, but the margin for error is small. The owners who come out ahead in 2026 and 2027 will be the ones who plan capital early, scope it carefully, and execute it with a partner who treats their budget like their own.

Refined Hospitality Solutions delivers renovations, PIPs, and capital improvement programs for hotel owners, management companies, and brands nationwide. If you're planning capital work for the coming year, we'd be glad to walk the property and help you build a realistic scope and budget.

Sources: Hotel Dive (Aug. 2026, CoStar/Tourism Economics forecast); Hospitality Investor, "The PIP breaking point" (June 2026).

When the Hotel Stays Open: Contractor Disruption in Occupied Renovations and How We Do It Differently

Fri, 23 Oct 2026 09:28:27 GMT

Noise, dust, blocked hallways, and missed schedules cost hotels real money. Here is what goes wrong on occupied renovations and how Refined Hospitality Solutions prevents it.

Most hotel renovations happen while the property stays open. Rooms are being sold on the floor above the work. Guests are checking in past the dumpster. Breakfast is being served next to a corridor that's being demoed.

In that environment, the contractor isn't just building — they're a guest of the hotel. And too often, they behave like it's an empty jobsite.

What goes wrong

Noise at the wrong time. Core drilling, demolition, and tile cutting at 7 a.m. on a Saturday turn into one-star reviews and comped rooms.

Dust and debris in guest areas. Poor containment spreads dust into hallways, HVAC returns, and occupied rooms. Debris carts in the lobby and tools left in corridors create safety hazards and a bad first impression.

Rooms out of order longer than planned. When subcontractors don't show up, materials aren't staged, or punch lists drag, rooms stay offline and the hotel loses revenue every night.

Crews who don't understand hospitality. Smoking near entrances, loud language, blocking elevators, using guest restrooms, parking in guest spots — small things that guests and staff notice immediately.

Poor communication with operations. The front desk doesn't know which rooms are coming back, housekeeping isn't told about a utility shutoff, and the GM finds out about a problem from a guest complaint.

Subcontractors with no accountability. On many jobs, the lead contractor hands work to multiple subs and disappears. Quality varies by trade, schedules slip, and the owner is left managing the work themselves.

Industry guidance on occupied PIPs says the same thing: construction crews want to finish fast, operators want guests comfortable, and those goals conflict unless someone actively manages both — with daily coordination between the contractor and hotel leadership.

How Refined Hospitality Solutions is different

We specialize in renovating properties that never close. Our process is built around protecting your guests, your staff, and your revenue.

One accountable point of contact. From preconstruction through closeout, you deal with one leader who owns the schedule, the budget, and the result.
Daily coordination with the hotel. We align with the GM and department heads on room blocks, noise windows, deliveries, and shutoffs — before the work happens, not after a complaint.
Quiet hours and phased room blocks. Loud work is scheduled around occupancy. Rooms are taken out of order in planned blocks and returned on schedule.
Containment and clean-as-you-go. Dust protection, protected paths of travel, and clean corridors at the end of every shift.
Crews held to hospitality standards. Professional conduct, designated parking and entrances, and respect for guests and staff — every trade, every day.
Vetted trade partners we stand behind. Whether we self-perform the work or manage it fully, every trade partner meets our standards for quality, schedule, and conduct — and we're accountable for all of it.
Transparent reporting and change control. Written updates, documented changes, and no surprises on cost or schedule.

The result

Renovations that stay on budget, rooms that come back on time, and guests who barely notice the work is happening. That's what "refined" means to us.

Planning a PIP or renovation at an occupied property? Contact Refined Hospitality Solutions to schedule a site walk and talk through a plan that keeps your hotel open, earning, and on brand.

Sources: Hotel Management, "How to get PIPs back on track with occupied renovations done right."

Are Independent Hotels on the Rise? Why More Owners Are Questioning the Brand

Fri, 23 Oct 2026 09:28:26 GMT

Franchise fees and OTA commissions are pushing some owners to drop the flag. Here is what the data says, and what to weigh before you go independent.

Talk to owners of small portfolios — two, five, ten select-service hotels — and you'll hear the same frustration: between the brand and the online travel agencies, a big slice of every room night is gone before the property pays a single employee. More of those owners are now asking a question that would have sounded risky a few years ago: do we still need the flag?

What owners are paying

Brand fees. Franchise royalties typically run about 4–6% of room revenue, and that's before marketing assessments, reservation and technology fees, and loyalty program charges. Industry commentators put the all-in cost of a brand at roughly 10–12% or more. One economy-brand owner profiled by Skift in 2026 said his family was paying about 10% of revenue to the franchisor off the top.

OTA commissions. Online travel agencies such as Expedia and Booking.com commonly charge 15–25% of the room rate, according to industry analysts. By comparison, a direct booking typically costs a few dollars per night to acquire.

Stack those together and it's easy to see why owners feel squeezed — especially when operating costs are rising faster than inflation.

So, are independents on the rise?

The honest answer: the conversation is growing faster than the numbers — but the numbers are moving.

Deflagging leads conversions. CoStar data shows that when hotels change affiliation, going from branded to independent has recently been the single largest conversion category — about 35% of conversions in 2024.
A wave of expiring agreements. According to FRANdata, cited by Skift, more than 1,200 economy and midscale franchise agreements expire by 2030. Many are 20-year deals signed in the 2000s, and each one is a decision point for an owner.
The tools have caught up. Modern property management, channel management, and revenue management systems now give independents much of the operating toolkit that used to require a brand.
Owners are frustrated with impact. Weak territorial protection — a sister brand opening down the street — is pushing some owners out.

At the same time, branded hotels still hold the large majority of U.S. rooms, and research continues to show branded hotels generally outperform on occupancy. Going independent is a real option, not a guaranteed win.

The catch: OTA dependence

Here's the trade-off owners need to plan for. Branded hotels lean on loyalty programs and direct channels; independents lean on OTAs. Cloudbeds' 2026 report found OTAs made up about 63% of independent hotel bookings, with OTA cancellation rates roughly double those of direct bookings. Some analysts estimate independents pay two to two-and-a-half times more in OTA commission than branded hotels.

In other words, dropping an 8–10% brand fee doesn't help much if the hotel ends up paying 15–25% to OTAs on far more of its business. The independents that win invest in their own website, direct booking, local and corporate accounts, reputation management, and a property guests actually want to come back to.

What going independent means for the building

Leaving a brand isn't just a paperwork decision — it's a physical one. Owners typically need to:

De-identify the property. Remove brand signage, logos, and trademarked elements inside and out.
Reposition the guest experience. Lobby, guest rooms, and public spaces need to stand on their own and justify the rate without a flag on the building.
Spend smart. Without a brand-mandated PIP, owners can focus capital on what actually drives reviews and revenue — guest rooms, bathrooms, beds, Wi-Fi, and first impressions.
Consider a soft brand. For some owners, a soft-brand or collection affiliation offers a middle path: more design freedom and lower brand standards, with access to a reservation system and loyalty program.

The bottom line

Independent hotels are gaining attention, and for the right owner in the right market, the math can work. But the decision should be made with clear numbers on fees, distribution, and the capital required to reposition the property.

Whether you're keeping your flag, switching brands, or going independent, Refined Hospitality Solutions helps owners plan and deliver the renovation work behind the decision — from de-identification and soft-goods refreshes to full repositioning — on budget and with the hotel open.

Sources: Skift, "Going It Alone: Why Hotel Owners Are Dropping the Big Brands" (June 2026); Hospitality Net, "What Is the Real Value of a Hotel Franchise in 2026?" (Jan. 2026); Hotel Guru, "What OTAs Actually Cost in 2026" (Sept. 2026); Cloudbeds, 2026 State of Independent Hotels Report (Mar. 2026); CoStar, "U.S. Hotel Conversion Activity Remains Muted."

Hotel Renovation Trends: What Owners and Brands Are Prioritizing in Today's PIPs

Fri, 23 Oct 2026 09:06:30 GMT

From tub-to-shower conversions to LVT flooring and connected rooms, here is where renovation dollars are going and what it means for your project.

Every brand cycle brings new standards, and today's PIPs look very different from the ones written a decade ago. Whether you're facing a full 20-year PIP or a soft-goods refresh, these are the trends shaping scope and budgets right now.

1. Tub-to-shower conversions

Guests increasingly prefer walk-in showers, and tubs carry a higher slip-and-fall risk. Brands across segments are pushing conversions, often with low-profile pans, linear drains, and glass or panel enclosures. Industry estimates put full conversions at roughly $8,000–$10,000 per room, so how the work is planned and phased has a big impact on cost and downtime.

2. Hard-surface flooring

Luxury vinyl tile (LVT) and vinyl plank continue to replace carpet in guest rooms and corridors. It cleans easily, holds up to traffic, and reads as fresh and modern. The catch: hard floors change room acoustics, so underlayment and sound control need to be part of the scope from day one.

3. Engineered bathroom surfaces

Quartz and other engineered solid surfaces are now common in brand specs for vanities and showers. Guests associate them with cleanliness, and they wear well over time.

4. Connectivity and the "connected room"

Brands are raising Wi-Fi standards, and many older properties need cabling and network upgrades to meet them. Mobile keys and app-controlled rooms are becoming standard expectations. Technology scope is now part of almost every room refresh — not an afterthought.

5. Public spaces that work harder

Lobbies, breakfast areas, meeting rooms, and ballrooms are being redesigned for flexibility: places guests can work, eat, and gather. Many PIPs also include mechanical upgrades, such as replacing older PTAC units with more efficient systems.

6. Value engineering and phased delivery

With construction and borrowing costs elevated, owners and brands are paying close attention to value engineering. Some brands have introduced lower-cost prototypes and design packages, and owners are increasingly negotiating phased scopes that keep the hotel open and earning during construction.

7. Earlier planning and procurement

Lead times on FF&E, fixtures, and specialty items can still stretch. Ordering early, confirming specs against brand standards, and coordinating delivery and storage keeps the schedule on track — and keeps rooms out of order for as few nights as possible.

What this means for your project

Today's renovations are more technical and more tightly scheduled than ever. The right contractor reads the PIP line by line, flags what can be value-engineered, sequences the work around your occupancy, and keeps the brand, owner, and operator aligned from preconstruction through closeout.

That's the work Refined Hospitality Solutions does every day — renovations, PIPs, conversions, and CapEx programs for flagged hotels across IHG, Marriott, Hilton, Choice, and Wyndham. If you have a PIP on the horizon, let's talk about scope, budget, and schedule before the clock starts running.

Sources: Hospitality Net, "Renovation Trends: Stylish, Custom & Connected"; Hospitality Investor, "The PIP breaking point" (June 2026).

none-refined-hospitality-solutions-ds9nt

The 2026 Hotel Market: Stronger Demand, Tighter Margins, and Why Capital Planning Matters Now

Hotel performance beat expectations in 2026, but rising costs and debt pressure make every capital dollar count.

Revenue is up. So are expenses.

Debt and PIP pressure are real

What smart owners are doing now

The bottom line

When the Hotel Stays Open: Contractor Disruption in Occupied Renovations and How We Do It Differently

Noise, dust, blocked hallways, and missed schedules cost hotels real money. Here is what goes wrong on occupied renovations and how Refined Hospitality Solutions prevents it. ﻿

What goes wrong

How Refined Hospitality Solutions is different

The result

Are Independent Hotels on the Rise? Why More Owners Are Questioning the Brand

Franchise fees and OTA commissions are pushing some owners to drop the flag. Here is what the data says, and what to weigh before you go independent. ﻿

What owners are paying

So, are independents on the rise?

The catch: OTA dependence

What going independent means for the building

The bottom line

Hotel Renovation Trends: What Owners and Brands Are Prioritizing in Today's PIPs

From tub-to-shower conversions to LVT flooring and connected rooms, here is where renovation dollars are going and what it means for your project.

1. Tub-to-shower conversions

2. Hard-surface flooring

3. Engineered bathroom surfaces

4. Connectivity and the "connected room"

5. Public spaces that work harder

6. Value engineering and phased delivery

7. Earlier planning and procurement

What this means for your project

Noise, dust, blocked hallways, and missed schedules cost hotels real money. Here is what goes wrong on occupied renovations and how Refined Hospitality Solutions prevents it.

Franchise fees and OTA commissions are pushing some owners to drop the flag. Here is what the data says, and what to weigh before you go independent.