Hospitality Industry Analysis

I recently had the opportunity to talk to Sandeep Thakrar, the president of Neema Hospitality. Neema Hospitality is a hotel ownership and management group based in Pennsylvania that operates 10 hotel properties. Its portfolio consists of franchised brands across Marriott, Hilton, Choice Hotels, and IHG (such as Holiday Inn Express, Comfort Inn, Hampton Inn, and Fairfield Inn).

One of the most interesting changes technology is bringing to the hospitality industry is the way hotels use their data. Thakrar described how Neema Hospitality has recently started using Peppermill Tools, a hospitality-specific AI company that centralizes information across numerous systems with the goal of helping hospitality companies maximize profits, optimize systems, and make stronger business decisions by providing centralized data. The software takes reservation, customer service, and financial data and puts it all in one place, allowing hotel owners to see how their properties are performing and make more informed business decisions. This is especially useful to companies that manage numerous hotels, where managing these separate systems for every property would be difficult. The technology can also identify specific optimization problems or errors, such as rates being too low at one hotel or breakfast costs being unusually high at another.

This type of technology is still relatively new, however. Thakrar explained that two years ago, he gave a group of University of Maryland business students a project to find an AI tool that could help with hotel operations, recruiting, sales, and marketing. No one was successful. Much more recently, Thakrar found Peppermill Tools himself, and Neema became one of the company’s early users. This illustrates how recently specialized AI tools have begun to offer practical applications for hotel management.

Another significant application of technology is the automation of hotel operations that have traditionally depended on human employees. Checking into a hotel at a number of franchises no longer necessarily requires interaction with an employee. Guests can use apps, digital keys, or self-check-in kiosks to enter their rooms. Hilton, among others, has introduced an AI concierge that offers real-time responses to help guests during their stay. Thakrar described one extended-stay hotel where an employee currently works overnight, even though there is very little for that person to do. The company is heavily considering replacing that position with a kiosk while still having someone available on-site for emergencies.

Cleaning is another area where automation could have a large effect in the future. Thakrar said that finding workers willing to clean hotel rooms can be difficult, making automation especially useful if technology becomes capable of reliably cleaning rooms. Machines already exist that clean public areas, but this technology would need to advance further.

However, this model would likely be more applicable to lower-end hotels, where affordability and operational efficiency are often central priorities. In higher-end hotels, personalized service and human interaction are important parts of the guest experience, and replacing these interactions with automated systems could detract from what guests expect. Even in lower-cost hotels, some guests will still prefer direct human assistance, particularly when dealing with unexpected problems or specific requests. Consequently, rather than eliminating human involvement entirely, emerging technology could create a more divided industry, with some hotels relying heavily on automation to minimize costs, while others continue to prioritize employees and personalized hospitality.

Together, these developments suggest that AI and automation could significantly reshape employment in the hospitality industry. By combining AI platforms that help managers analyze data and optimize operations with physical automation, such as self-check-in kiosks and potentially automated cleaning systems, hotels could eventually operate with significantly smaller workforces. In this model, a limited number of managers could oversee largely automated operations across one or more properties, reducing the need for employees in routine administrative and service roles. While this could lower labor costs and create opportunities for increased profitability or more affordable accommodations, it could also displace workers whose responsibilities become increasingly automated.

However, this model may be more appealing to lower-end hotels, where reducing operational costs and maintaining affordability are often important priorities. Higher-end hotels, by contrast, may continue to rely on larger teams of employees to provide the personalized service and human interaction that are central to their guest experience. Rather than eliminating human involvement entirely, AI and automation could therefore lead to different operating models across the hospitality industry, with some hotels prioritizing efficiency through minimal staffing and others continuing to invest in human service.

With all of these advancements, multi-property hotel management is a much more compelling career.  It balances reliable brand demand with a lot of potential operational gain. Modern hospitality platforms make management increasingly efficient, and automation that is becoming increasingly present reduces payroll expenses. Because lower end and midscale hotels prioritize affordability and efficiency over high service, running this low-staff model allows a small corporate team to oversee multiple properties. Additionally, there is a very consistent demand for travel and staying at hotels. While it may have limited upward earning mobility, a managerial hotel position should be safe from emerging technologies, as long as a person in this position can use emerging technologies to amplify their impact and output.