It’s Thursday, July 3. Lighthouse launched an MCP designed to plug hotel rates and content into AI planners. New data shows U.K. hotels boosted tech spend by 21% in May, even as ADRs slipped—betting on automation and personalization to stay competitive. And L+R Hotels is reworking its entire ops model to unlock efficiency and reimagine loyalty. A few mergers and acquisitions as well including the long troubled Inspirato business (which I almost caved and subscribed to last year had my wife not stopped me). Sorry this week is a long one but there’s a lot going on in hospitality tech. Let’s jump in.
TOGETHER WITH PROFITSWORD BY ACTABL
How Hospitality Ventures Management Group Saved 10+ Hours a Week with Automated Labor Forecasting
Struggling with manual labor forecasting and error-prone reporting? Learn how HVMG eliminated busywork and boosted efficiency with Actabl.
✅ Seamless Automation: Integrate real-time labor data and “ProfitSword + Hotel Effectiveness” insights to automate forecasting and reporting—no more spreadsheets or manual entry.
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HVMG’s Director of Systems said: “I really cannot, in this day and age, believe that there would be a manual process anywhere that would be superior to automation.”
GOING DEEPER
1. Hotels Must Adapt to AI Search or Risk Losing Visibility
Cloudbeds’ latest Signals Behind Hotel AI Recommendations report highlights the shift in how travelers search and book hotels. AI-powered tools like ChatGPT are replacing traditional search engines, making hotel discoverability more reliant on AI recommendations than ever before. OTAs, such as Booking.com, Expedia, and Tripadvisor, are the primary sources cited by AI, accounting for over half of all citations (55.3%). Additionally, a strong online presence is essential—AI highly values visibility across platforms, with nearly all recommended hotels appearing on YouTube (98%), in travel blogs (97%), and on Reddit (95%).
🎯 Why it matters: By 2028, organic search traffic to hotel websites could decline by 50%. AI is replacing traditional search engines, and visibility now hinges on being recommended by AI tools like ChatGPT, Gemini, and Perplexity. Given that AI tools pull content from a variety of sources, including OTAs, review sites, and social media platforms, maintaining strong online presence is crucial.
🔑 Key takeaway: Hotel executives must focus on diversifying digital presence, managing reviews, and optimizing for AI recommendations. Strong citations from OTAs, quality content, and a robust reputation strategy are critical to winning bookings in an AI-driven world. Read More →
2. Hotel M&A Down 36%, But Luxury and Tech Deals Surge, Says PwC
PwC’s June 2025 Hospitality & Leisure Deals Outlook reports a continued slowdown in hotel M&A activity due to high interest rates, trade tensions, and valuation gaps. Despite this, select transactions are moving forward in high-end segments and digital infrastructure, as well-capitalized buyers pursue strategic growth.
🎯 Why it matters: Large-scale hotel deals remain rare, with market conditions favoring smaller, targeted acquisitions. The focus has shifted to assets that offer differentiation—such as luxury, lifestyle, or tech-enabled properties—which are seen as better positioned for long-term returns.
🔑 Key takeaway: The deal environment reflects a bifurcation in strategy: many are sitting out due to economic pressure, while others are selectively investing in assets that support modernization and premium experiences. PwC notes this pattern may persist as interest rate uncertainty continues into 2026. Read More →
3. U.K. Hotels Boost Tech Spend by 21% in May
As ADRs dropped in May, U.K. hotels ramped up their investment in technology to stay competitive. Despite a slowdown in pricing, operators are doubling down on digital solutions to enhance guest experiences and streamline operations. This includes AI-driven systems for personalized services, data analytics to optimize pricing, and automated check-ins to improve efficiency.
🎯 Why it matters: With fluctuating room rates and increasing operational costs, leveraging technology has become a critical strategy for hotels looking to maintain profitability. Investing in smart tech not only helps improve efficiency but also provides a competitive edge in an increasingly tech-savvy market.
🔑 Key takeaway: Hotel executives must prioritize technology upgrades to enhance guest satisfaction and operational efficiency, particularly in a climate of declining ADR. Especially in urban markets, like London, adapting to tech-driven trends will be key to staying ahead in a competitive hospitality landscape. Read More →
TOOLS & TACTICS
⚒️ Hotel Tech Tools You’ve Gotta Try
✅ Profitsword: Turn powerful BI data into actionable insights that maximize profits.
✅ FLYR: Better data analysis for more profitable decision-making.
✅ Otelier: Optimize hotel budgets and forecasts with precise, data-driven insights.
✅ ROH: Automate sales and finance to save time and capture more revenue.
✅ Canary Technologies: Powerful but simple AI powered digital guest journey platform.
✅ Omniboost: Integrate financial data for accurate real-time business insights.
🎉 Big congrats to HotelTechReport portfolio company HostGPO and CEO Jeff Iloulian on landing a deal to get hotel and STR host customers huge discounts on all Amazon Business products.
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AROUND THE HOTEL INDUSTRY
Other hospitality happenings this week
🧠 Hotel guest messaging player chatlyn raises €8M to build AI brain
🔗 Lighthouse launches an MCP syncing hotel content to AI-powered planners
📊 Revenue Analytics acquires Climber, a small RMS focused on Europe and LatAm
📢 Screen Pilot Expands to create a new global marketing agency and tech platform
⛅ WeatherPromise partners with Marriott’s Homes & Villas platform to offer “bad weather insurance”
💰 40% of consumers say value isn’t just price—‘MVP’ brands are winning, says new Deloitte research
🤝 Inspirato merges with Buyerlink, expanding performance marketing reach for luxury travel and hotel brands.
🧑💻 Expedia and Kayak debut AI travel agents which can automate itinerary planning.
📞 Meta adds business voice calling to WhatsApp
🏆 L+R hotels streamlines operations, behind their digital transformation.
🔧 Restaurant brands wrestle with whether to build or buy tech.
🗣️ Europe tackles multilingual AI challenges to compete with U.S. models.
🥶 New data shows Gen Z doesn’t want hot coffee
🤖 Bernie Sanders and Joe Rogan debate AI and 4-day workweeks: tech and labor policy collide.
PODCAST OF THE WEEK
🎙 Strawberry's SVP of Tech on Building a Culture of Innovation in Hotels
What if the key to enhancing your hotel’s guest experience lies not just in technology, but in empowering your staff? In this episode, Kariana Fiskvik, Senior Vice President of Technology at Strawberry, reveals how focusing on employee support can revolutionize the hospitality industry.
Key Takeaways:
Discover how Strawberry is leveraging generative AI to streamline employee training and enhance operational efficiency, ultimately improving guest interactions.
Learn why prioritizing staff well-being and training can lead to a more authentic and engaging guest experience, challenging the conventional focus on customer journey alone.
Explore the innovative partnership between Strawberry and Norwegian Air, which aims to consolidate loyalty points and create a seamless experience for travelers.
👉🏼 Check out the interview on Apple Podcasts or Spotify.
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