TLDR: New research indicates a growing adoption of AI across the hospitality sector, but a significant disparity exists between large hotel chains and independent properties. While 78% of chains already use AI and 89% plan to expand, only 7% have a comprehensive AI strategy. This strategic vacuum, coupled with a lack of expertise and integration challenges, hinders their progress. In contrast, independent hotels are demonstrating faster ROI from AI implementations, focusing on intelligent energy management, guest communication automation, and advanced marketing tools. Chatbots are the most common current AI application for chains, with customer data management being the leading area for future investment.
The hospitality industry is increasingly embracing artificial intelligence (AI) to enhance guest experiences and streamline operations, yet a notable divergence in adoption strategies and outcomes is emerging between global hotel chains and independent properties. Recent studies, ‘AI & Automation in Hospitality: Navigating Today’s Challenges, Shaping Tomorrow’s Gains’ by h2c and Cloudbeds, and ‘AI Hospitality Revolution 2025’ by TakeUp, provide a comprehensive overview from over 370 hoteliers worldwide.
According to h2c’s global study, which surveyed 171 hotel chains representing more than 11,000 properties, a substantial 78% of chains are currently utilizing AI, with an even higher 89% planning to expand their AI applications within the next 12 to 24 months. Chatbots are the most prevalent current use, adopted by 42% of chains, while customer data management is identified as the leading area for future investment, with 50% of chains planning to focus there. Despite this widespread adoption and future intent, a critical gap exists in strategic planning: only 7% of hotel chains report having a comprehensive, company-wide AI strategy. This strategic void is reflected in their ‘reliance on AI’ score, which averages 4.7 out of 10, significantly lower than their ‘trust in the technology’ score of 6.6 out of 10.
Major barriers impeding AI adoption for hotel chains include a lack of expertise (cited by 62%), unclear strategy (51%), integration difficulties (45%), and high costs or budget constraints (39%). Other challenges encompass organizational resistance to change (31%), concerns over data security and privacy (30%), uncertainty regarding ROI and investment (27%), and issues with data quality and accessibility (26%).
In contrast, independent hotels are demonstrating a faster return on investment (ROI) from their AI implementations. Their expansion plans are centered on practical applications such as intelligent energy management, enhanced guest communication automation, and sophisticated marketing tools. This agile approach allows them to quickly integrate AI solutions and realize tangible benefits.
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For large hotel chains, the immediate challenge lies in transitioning beyond pilot programs to enterprise-wide integration, with growing interest in robotic process automation, proactive AI agents, and digital identity verification. Both studies suggest that early AI adopters in the hospitality sector stand to gain a significant competitive advantage. The key for all operators, from global groups to family-run inns, will be to develop and execute an AI strategy that effectively leverages the technology to improve business operations and guest experiences before competitors do.
