It’s Thursday, July 2. Langham just paid $320K because its pricing algorithm couldn't tell a wildfire from a sold-out weekend. Meanwhile, OpenAI's models broke out of a test sandbox and hacked Hugging Face, and BCG says fewer than 10% of hospitality companies are actually ready for AI. OpenTable says 60% of summer travelers picked their hotel for the restaurant, not the room. And while PwC expects data center spending to double to $118B, Wyndham and Choice are chasing that demand as My Place's CEO calls it an oil boom waiting to bust.
🎥 Video of the week: We go behind the scenes of how Lark Hotels used Hotel Investor Apps to standardize financial operations while scaling from 20 to more than 70 properties.
📢 Shoutout to Lark Hotels CEO and long time Hotel Tech Insider reader Peter Twachtman. Peter thanks for coming on the podcast and sharing your insane scaling story from 20 to 70 properties in 5 years.
TOGETHER WITH GCOMMERCE
When travelers ask ChatGPT where to stay, does your hotel show up in the answer? GCommerce's free AI Visibility Audit shows exactly where your property stands in AI-generated recommendations and how to close the gaps before competitors capture that demand.
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✅ Structured Data Evaluation: Find out whether AI engines can actually read and classify your content, or whether incomplete data is causing them to skip you entirely.
✅ Competitive Benchmarking: Identify which competing properties AI recommends instead of yours and get a prioritized roadmap to change that.
Trusted by properties like Boston Harbor Hotel, Meadowood Napa Valley, and Eau Palm Beach, the audit arrives as a guided strategy session with fixes your team can apply this quarter. AI answers are the new page one. If you're not in the answer, travelers won't find you.
GOING DEEPER
1. Langham Pays $320K Plus Refunds to Settle Pasadena Wildfire Price-Gouging Case Over Algorithmic Rate Hikes
Langham will pay $320,000 in penalties and roughly $217,000 in refunds after LA County alleged its Pasadena hotel raised rates beyond California's 10% emergency cap during the 2025 wildfires. It matters because the settlement targets the revenue management system itself: Langham must modify its automated pricing algorithms to block unlawful increases during declared emergencies. Every operator running dynamic pricing now has a compliance question, because an RMS that responds to demand spikes doesn't know a wildfire from a concert unless someone programs it to.
🔑 Key takeaway: This isn’t Langham’s fault nor is it their RMS vendor’s. They unfortunately became an example we can learn from that prosecutors treated algorithm-driven rate increases exactly like manual price-gouging, and "the system did it automatically" was not a defense. Make sure to address this with your RMS vendors and create a gameplan for scenarios like this. Read More →
2. OpenTable: 60% of Summer Travelers Booked a Hotel Because of Its Restaurant
OpenTable's new data shows hotel restaurants driving room bookings, with 60% of summer travelers choosing a hotel specifically for its restaurant and traveler dining up 13% year over year. It matters because F&B has flipped from cost center to demand generator: 92% of hotel restaurant diners aren't even staying at the hotel, meaning a strong outlet pulls both room nights and local revenue. Hotels treating their restaurant as an amenity rather than a marketing asset are leaving bookings on the table, while competitors on lists like this one plan around it.
🔑 Key takeaway: Market your restaurant as a reason to book the room, not a perk after arrival. Make dining bookable alongside the room, and make sure the restaurant's reviews, menus, and photos are strong on the platforms travelers plan from. Note the source: OpenTable commissioned this research and sells the platform it recommends. Read More →
3. PwC Projects Data Center Spending to Double by 2027 as Chains Split on Extended Stay Bet
Data center construction spending is set to more than double to $118.4 billion by 2027, and extended stay brands are racing to position hotels near the projects. It matters because the biggest names in the segment can't agree on whether this demand lasts: Wyndham sees sustained suburban development, while My Place's CEO calls it an oil boom that ends overnight. Owners who build new construction against temporary construction-crew demand could be holding empty rooms in five years, while those who ignore genuine clustering markets leave money on the table.
🔑 Key takeaway: The smart money isn't chasing the data centers themselves. Choice is targeting supply chain markets where cooling, turbine, and electrical equipment manufacturing is expanding, because those factory jobs are permanent while construction crews leave. Before committing capital to a data center market, run My Place's test: can you correlate commerce growth, rooftop growth, and population growth over the past three to five years? If the only demand driver is the construction site itself, favor conversions over new builds. Read More →
TOOLS & TACTICS
⚒️ Hotel Tech Tools You’ve Gotta Try
✅ Canary Technologies: Powerful but simple AI powered digital guest journey platform.
✅ Sojern: Pay-for-performance hotel ads that drive direct bookings.
✅ Hireology: Find and hire reliable staff faster to fill key hotel roles.
✅ Siteminder: Capture direct bookings, syncs rate and reduce OTA commissions.
✅ FPG: Upsell highly profitable ancillary upgrades and track performance.
✅ Operto: Automate guest messaging, check-in, upsells across the guest journey.
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VIDEO OF THE WEEK
AROUND THE HOTEL INDUSTRY
Other hospitality happenings this week
🤖 OpenAI confirms its models broke out of a sandbox and hacked Hugging Face
📊 BCG: AI pricing tools drive 15% RevPAR growth but few hotels are ready
🗽 NYC hotels still missing international visitors, comptroller warns
✊ Striking Seattle hotel workers collect unemployment benefits under new Washington law
🧳 Allianz: 37% of travelers now use AI to plan summer trips
AI TOOL OF THE WEEK
Ernest by Lighthouse turns hotel data into action
Ernest connects your commercial data in one AI workspace, analyzes demand and competitive performance, recommends next steps, and takes approved actions across your hotel systems.
🪄 Stop switching between dashboards and compiling reports manually—Ernest brings your data together so you can make faster, better-informed commercial decisions.
TECH INSPIRATION
Find the best tech, by department.
The best operators don’t just keep up they stay curious. They demo new tools, test ideas in real workflows, and talk to peers to see what’s actually working. That’s how you find the small changes that compound into meaningful results. Pick your department below and commit to trying at least one new tool this week. Even a single demo can spark an idea that improves performance, saves time, or unlocks new revenue.
Hotel Operations: Run a tighter, more efficient operation
Hotel Marketing: Capture new demand with smarter acquisition strategies
Revenue Management: Make more confident, data-driven commercial decisions
Guest Experience: Increase revenue per guest while improving the stay
PODCAST SPOTLIGHT
Lark Hotels CEO on Building an AI-Ready Hotel Portfolio
In this episode, Peter Twachtman, CEO of Lark Hospitality, explains how one of the fastest-growing independent hotel management groups is building a scalable technology and operating model across more than 70 properties in 22 states, Mexico, and Canada. Lark specializes in independent and branded hotels with fewer than 150 rooms. After growing from roughly 20 hotels and merging with Life House, Peter and his team consolidated the portfolio around a core technology stack
👉🏼 Check out our interview with Peter Twachtman on Apple Podcasts or Spotify.
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