The hospitality industry is at a crossroads. Mergers and acquisitions abound, shining a spotlight on the increasing role of hotel management groups centralizing and automating operations. With an influx of new technology aimed at increasing efficiency, hoteliers are facing a critical question: How do we navigate system fragmentation, choose the right tech partners, and ensure our business remains competitive in an increasingly complex environment?
Earlier this month, I had the opportunity to present at the Digital Transformation Summit in Orlando, where I discussed how data should serve as the foundation for modernizing hospitality operations. Here is a summary.
The Shifting Landscape of Hospitality Technology
The hospitality industry has seen an unprecedented surge in investment, mergers, and acquisitions over the past 18 months. Private equity firms and major hotel groups continue to consolidate portfolios, bringing new operational efficiencies but also introducing the challenge of integrating disparate systems. In the past six months alone, several high-profile acquisitions have reshaped the industry, including Hyatt’s $2.6 billion acquisition of Playa Hotels & Resorts, Oyo’s $525 million purchase of Motel 6 and Studio 6, and the merger of PM Hotel Group and Sightline Hospitality. These deals reflect the increasing trend of consolidation, forcing operators to rethink their approach to technology as they bring together multiple platforms under one roof.
This trend isn’t limited to hotel ownership. The hospitality technology sector is also experiencing rapid consolidation, with private equity firms driving a 108% increase in travel and hospitality tech M&A activity in 2024 (Skift). Companies are recognizing that the fragmented nature of legacy systems is unsustainable, and investors are seeking to unify disparate platforms to create more efficient, data-driven solutions.
While increased investment has led to a greater range of tech solutions, it has also introduced new layers of complexity. Hoteliers now have more choices than ever, but with those choices comes the challenge of making technology work together seamlessly.
The Case for Digital Transformation in Hotel Operations
Despite the operational complexity of today’s hospitality landscape, one thing is clear: digital transformation is no longer optional – it’s imperative. Across industries, companies are accelerating their transition from legacy systems to cloud-based, AI-driven platforms, and hospitality is no exception.
92% of global executives report cloud technology implementation within their organizations (Mooncamp).
50% of organizations have integrated AI into at least one business function, up from just 20% in 2017 (McKinsey).
92% of executives plan to increase their investment in AI over the next three years (McKinsey).
These statistics underscore the urgency for hotels to modernize. Cloud-based solutions offer flexibility, scalability, and seamless data access – critical factors for hotels managing multiple properties, brands, and systems. AI is no longer a futuristic concept but a present-day necessity, providing hoteliers with advanced forecasting, labor optimization, and guest personalization capabilities.
Beyond the technology itself, the shift toward digital transformation is being driven by fundamental business priorities. According to HotelTechReport, when asked about their biggest focus areas, hospitality leaders cited:
39% – Improving operational efficiency
31% – Transforming guest journeys
15% – Increasing business agility
At the same time, hotels continue to grapple with persistent challenges, according to a 2025 survey by HotelOperations.com. The top day-to-day concerns among hospitality executives include:
22% – Revenue generation and profitability
17% – People and hiring
12% – Guest experience
The key takeaway is that technology investments must address real operational needs, rather than simply adding more tools to an already complex ecosystem.
Choosing the Right Technology Partner
As hotels evaluate potential technology solutions, it’s essential to go beyond just features and pricing. The best technology partner is one that can grow alongside the business, seamlessly integrate with existing platforms, and offer robust support during and after implementation. Before committing to a provider, hoteliers should ask:
Is the solution scalable? Can it support future growth and expansion?
Does it integrate well with current systems? Or will it create additional silos?
What level of support and training is provided? Will the provider help manage change and drive adoption?
One of the biggest obstacles in digital transformation is resistance to change. Many hoteliers stick with familiar systems simply because they are used to them – even when better solutions exist. This hesitancy often leads to delayed implementation and missed opportunities for efficiency gains.
To overcome this, hotels need to take a strategic approach to digital adoption, ensuring alignment across leadership and focusing on areas with the greatest impact. Successful technology adoption is driven by:
Executive alignment – Leadership buy-in is crucial for company-wide commitment.
Prioritizing high-impact processes – Targeting the areas where technology can deliver the biggest improvements.
Training and ongoing support – Ensuring teams understand and utilize new systems effectively.
The Role of Data: The Foundation for Smarter Decisions
At the core of any successful digital transformation strategy is data. Without a centralized and integrated data strategy, hotels will continue to make reactive rather than proactive business decisions. By consolidating data across systems, hotels gain a competitive advantage that allows them to optimize staffing, streamline inventory management, and deliver highly personalized guest experiences.
A well-integrated tech stack ensures that hotels can move beyond siloed tools and operate with one version of the truth, making data accessible and actionable across departments. This shift is critical for automating manual tasks, improving revenue forecasting, and providing insights that drive smarter business strategies.
The Future: What’s Possible in Hospitality Tech?
The next phase of hospitality technology will focus on the intersection of automation, AI, and human service. According to Deloitte, industry leaders recognize both the challenges and the opportunities ahead:
54% of hospitality leaders believe existing technology is not advanced enough (compared to 29% in other industries).
40% of GMs say reskilling to address new technology is a top challenge.
60% expect automation to improve customer experiences.
While automation is advancing rapidly, hospitality remains a people-first industry. The goal is not to replace human interaction but to empower employees with better tools that allow them to focus on delivering exceptional guest experiences. AI-driven personalization, predictive analytics, and automation will enable hotels to reduce inefficiencies while enhancing service.
Building a Sustainable Digital Strategy
Digital transformation is not about replacing every system at once. The most successful hotels take a phased approach, focusing on high-impact areas first and ensuring that each technology investment aligns with their broader business strategy.
To future-proof operations, hoteliers should:
Start with data. Ensure systems are integrated and provide a unified view of operations.
Prioritize efficiency. Invest in automation and AI to reduce friction and streamline workflows.
Choose the right partners. Work with vendors who understand the unique challenges of the hospitality industry.
Technology should not be a burden – it should be a strategic enabler that empowers teams, improves guest experiences, and drives long-term profitability. By embracing data-driven decision-making, hoteliers can confidently navigate the evolving digital landscape and position themselves for sustainable success.
About Otelier
Otelier is a hospitality performance optimization platform that puts data and efficiency at the heart of hotel operations. The solutions enable hotel owners, operators and brands to run world-class operations by automating back-office tasks, improving budget and forecast accuracy, and gaining real-time insights into property and portfolio performance. Otelier serves more than 10,000 hotels across the globe with DigiAudit, DigiPay and Rec to streamline back-office workflows; TruePlan for more accurate budgets and forecasts; and IntelliSight to turn comprehensive data sets into actionable insights. For more information, visit otelier.io.
Jason FreedHospitality Data Evangelist+1 330 221 6068Otelier (formerly myDigitalOffice)
