First Hospitality Sets Its Sights on Key Trends Shaping Hotels and Restaurants in 2027

CHICAGO, IL — First Hospitality, a national hotel operating, management, and development company, is looking ahead to 2027 by identifying the trends expected to redefine hotel operations, commercial strategy, restaurants and bars, and the guest experience.

As traveler expectations evolve, First Hospitality anticipates that the most successful hotels will be those that combine operational innovation, distinctive dining, and curated local experiences while keeping both guests and locals top of mind. The following trends reinforce the importance of connecting operational excellence, commercial creativity, and experience-driven hospitality to create long-term value for hotel owners and memorable experiences for guests and locals.

Five Trends Shaping Hospitality in 2027

1. AI-Powered Operations with a Human Touch

Artificial intelligence will play an increasingly important role in forecasting demand, optimizing labor, streamlining operations, and personalizing guest experiences. The opportunity lies in using technology to empower hotel associates while preserving the human connections that define exceptional hospitality.

First Hospitality recently implemented AI-powered virtual agents to help hotels respond to routine guest calls immediately while directing more complex needs to associates, allowing front desk teams to focus on guests and higher-value interactions. For example, at First Hospitality’s lifestyle property in downtown Columbus, First Hospitality implemented two AI-powered virtual assistants that handled 5,015 calls, resolving half without human intervention. Calls averaged 38 seconds, with no hold times, freeing up more than two days of front desk staff time.

We see AI as an opportunity to enhance every aspect of hospitality, from how we operate our hotels to how we engage with our guests. Our AI-powered virtual agents are delivering natural, human-like interactions while providing guests with faster responses and eliminating unnecessary wait times. We’re now piloting this technology at several additional hotels across our portfolio. Beyond operational efficiency, our focus is on using AI to better understand guest preferences and empower our teams to deliver more personalized, thoughtful experiences. Ultimately, our goal is to make every guest feel seen, valued, and genuinely cared for. Technology should enhance the human connections that make hospitality special, not replace them.

Nick Johnson, Senior Vice President of Full-Service & Lifestyle Hotels at First Hospitality

2. Restaurants and Unconventional Spaces Evolve into Experience-Driven Social Destinations

Hotel restaurants, bars, and reimagined spaces will continue evolving beyond traditional guest amenities into vibrant social destinations that attract locals and travelers alike. Expect greater emphasis on chef-driven concepts, inventive cocktail programs, experiential dining, and programming that creates reasons to visit beyond an overnight stay.

First Hospitality recently launched a Mahjong Series in partnership with SB Crack Club at its California lifestyle property located along the coast, transforming a traditional game into a dynamic weekly social experience that brings the local community together to play, dine, and socialize. Complemented by a thoughtfully curated menu, the series has quickly become a compelling driver of both engagement and revenue, generating more than 200% growth in daily revenue compared to a typical day while introducing the property to an entirely new audience.

The property also recently hosted a murder mystery evening in partnership with THEY Improve, activating the lawn surrounding a historic landmark built in 1880. Set amid more than five acres of gardens, the event welcomed more than 75 guests who enjoyed a chef-driven menu while participating in an interactive “Poison Garden”-themed murder mystery dinner. Generating more than $10,000 in ancillary revenue, the event highlighted the property’s ability to transform an ordinary evening into a memorable experience for guests.

Hospitality in 2027 will be about creating more value from every space and every guest interaction. We’re seeing an exciting evolution in how hotels approach their restaurants, bars, and social spaces, not simply as amenities, but as destinations that bring people together, connect with local communities, and create new opportunities for growth. The hotels that succeed will be those that embrace innovation while delivering brand-driven, personal experiences guests remember.

Christina Santarelli, Senior Vice President of Marketing at First Hospitality

3. Hotels Evolve into Year-Round Wellness and Community Destinations

Guests are seeking experiences that nourish the body, support well-being, and foster meaningful connections. Hotels will evolve beyond traditional accommodations to become vibrant wellness destinations, offering thoughtfully curated programming that engages both overnight guests and the local community. By integrating wellness into daily programming, food and beverage, and social experiences, hotels can establish themselves as year-round community wellness hubs, attracting new audiences, strengthening local connections, and creating incremental revenue opportunities beyond traditional room nights.

At a lifestyle property located in Sedona, First Hospitality has embraced the destination’s natural beauty and spiritual energy to create distinctive wellness-focused programming that extends beyond the traditional hotel stay. Through a thoughtfully curated calendar of immersive activities, including daily sunrise meditation and yoga overlooking Sedona’s iconic red rocks, weekly restorative sound baths, nightly moonrise ceremonies complemented by a tequila sipper, Saturday stargazing, and interactive palmistry classes, the property creates meaningful opportunities for guests and the local community to connect, recharge, and discover something new.

With live music seven days a week, this programming transforms the hotel into a vibrant gathering place where wellness, hospitality, and community intersect. In addition to elevating the guest experience, nightly live music drives incremental revenue by doubling the average guest check. By activating the property through wellness-focused, destination-inspired experiences, First Hospitality strengthens the property’s competitive positioning, deepens guest engagement, and creates opportunities to attract local audiences, encourage repeat visitation, and drive incremental food and beverage revenue.

Wellness is no longer just an amenity; it’s becoming a key factor in how guests choose where to stay. We’re creating destination-inspired experiences that bring travelers and locals together that extend beyond a traditional hotel stay. Looking ahead to 2027, hotels have an opportunity to become year-round wellness hubs that strengthen community connections, drive guest loyalty, and create new revenue opportunities.

Jared Heglin, Vice President of Full-Service & Lifestyle Hotels at First Hospitality

4. Value-Conscious Travelers Will Prioritize Experiences While Becoming More Strategic About When and Where They Book

As we look ahead to 2027, travel demand is expected to remain resilient, but travelers will become increasingly intentional about how they spend. Rather than sacrificing travel altogether, consumers will prioritize meaningful experiences while seeking greater value in their accommodations, destinations, and booking decisions. This shift is already emerging across First Hospitality’s portfolio, where holiday bookings are pacing 20% ahead of last year, with room rates trending approximately 6% higher.

Notably, select-service hotels are outperforming full-service and lifestyle properties, signaling a potential shift toward more budget-conscious travel without compromising the desire to explore and connect. Booking behaviors are also becoming more dynamic, with travelers securing accommodations earlier for peak holiday periods to lock in favorable rates, even as shorter booking windows and last-minute demand surges continue to shape other travel occasions. In 2027, hotels that successfully balance value, flexibility, and compelling guest experiences will be best positioned to capture demand, as travelers increasingly seek to maximize the overall value of their trips rather than simply choosing the lowest room rate.

Higher gas prices aren’t stopping Americans from traveling; they’re changing how they travel. Consumers are becoming more strategic about choosing destinations, weighing the cost of driving versus flying, booking earlier, and maximizing loyalty benefits. The desire to travel remains strong, but getting the most value out of every trip is becoming increasingly important.

Nadia Panasyuk, Senior Vice President of Revenue Strategy at First Hospitality

5. Menu Trends: Balancing Bold Innovation, Guest Expectations, and Operational Excellence

As consumers become more intentional about how they eat and drink, hotel restaurants and bars will adapt with menus that balance bold flavors, health-conscious choices, flexible portions, and innovative beverage offerings. Guests are increasingly selective about what they order, gravitating toward smaller plates, ingredient-forward dishes, and beverages that align with their individual preferences. From the continued popularity of matcha and emerging alternatives like hojicha to the growing presence of zero-proof cocktails and bitter, vegetable-forward ingredients, operators will need to rethink traditional menus to meet evolving expectations.

This shift is also changing how hotels approach their food and beverage concepts. Rather than relying primarily on overnight guests, properties are increasingly designing restaurants and bars to attract local diners and build a loyal neighborhood following. At First Hospitality’s lifestyle property in Indiana, a 93-room hotel, for example, an average of 30 to 45 overnight guests dine at the hotel for breakfast, making local diners essential to the restaurant’s success. Similarly, at a lifestyle property in Green Bay, Wisconsin, First Hospitality is developing restaurant concepts with a goal of generating 60% of business from local diners while tailoring operating hours to align with demand.

We’re looking at hotel food and beverage as an essential part of the overall business strategy, not simply an amenity for overnight guests. The opportunity is to create concepts that can stand on their own, give people a reason to visit regardless of whether they’re staying at the hotel, and become part of the local dining scene. That requires a more thoughtful approach to everything from concept development and design to staffing and hours of operation. As the industry faces continued pressure on labor and operating costs, the ability to create a distinctive dining experience while running an efficient business will be what separates successful hotel restaurants from the rest.

Danny Py, Vice President of Restaurants & Bars at First Hospitality

For more information about First Hospitality and its portfolio of hotels, please visit: firsthospitality.com.