At the Destination AI conference, hotel executives said labor is the clearest place for AI to cut costs. Miami hospitality companies are building tools for that same pressure. #HotelTech #HospitalityTech #MiamiHospitality #MiamiTech
Hotel AI has a first target, and executives say it is labor.
Hotel Management reported from the Destination AI conference in Washington, D.C. Operators described high costs, thin staffing and profits that still trail pre-pandemic levels.
Why Is Labor the Place to Start?
Despite the headwinds, panelists were optimistic. They said AI can help operators do more with the resources they already have.
Alex Cabanas, executive chairman of Pyramid Global Hospitality, set the scene. “Labor and expenses have reset to a much higher cost,” he said.
He noted that gross operating profit remains below pre-pandemic levels for many hotels.
Labor is the largest operating expense at Aimbridge Hospitality, said chief information officer Keryn McNamara. So the company built its own AI labor forecasting platform.
“We have the data across the 800-plus global hotels that we run,” she said. Building it in-house helped adoption, she added, because it lives inside systems staff already use.
Andrew Arthurs, president and COO of Actabl, said labor is the issue operators raise most. AI can surface scheduling gaps, contract labor costs and overtime.
Small gains add up quickly, he said. “If you just save a minute per occupied room at a 300-room full-service hotel, that is translating to hundreds of thousands of dollars savings per year.”
Aimbridge is also building AI forecasting and analytics for its revenue managers. The goal is to surface key insights and cut manual, repetitive work.
Arthurs warned that owners may underestimate how fast early movers build an edge. Organizations that learn and adapt faster, he said, create a “virtuous cycle” of better outcomes.
How Much Margin Could Hotel AI Add?
McNamara estimated AI could add roughly 300 basis points of margin over the next five years. That assumes operators embrace change and execute well.
Arthurs went further and called EBITDA margins of 30 percent realistic, driven by better visibility and efficiency.
Both figures are executives’ estimates, not measured results. Panelists agreed that hospitality is still early in adoption.
“We’re not known as an industry that changes well,” McNamara said. “I think we’re on the precipice of immense change.”
What Else Is on the Operator Wish List?
Operators told the panel they have too many systems that do not talk to each other. Revenue managers, who often cover several properties and brands, juggle many platforms each day.
Will Gilbert, co-founder of Bodhi, pointed to energy. Connected buildings can adjust HVAC by occupancy. “The biggest waste of a hotel is conditioning empty air,” he said.
Gilbert added that connected buildings can also improve maintenance and prevent equipment failures.
Skills matter as much as software. Matt Schwartz, chief technology officer at Sage Hospitality Group, said AI fluency is a strategic priority. Sage has rolled out ChatGPT Enterprise and training across its leadership.
McNamara said workforce readiness has overtaken cybersecurity as the issue that keeps her up at night.
Panelists also expect roles to change. Gilbert predicted robots in engineering and back-of-house work. McNamara said the front desk itself could disappear.
“I don’t think the people go away,” she said. “I think the people are phenomenally important to the guest experience.”
Where Does Miami Fit?
Miami lives on hospitality, so the pressure on hotels is a local business story. MAIN profiled 5 Miami hospitality AI firms building tools for the same problems.
One is Xina AI, a Miami Beach company. It sells voice and visual ordering for room service, housekeeping and concierge requests.
Another is LastKeys, which is starting with independent and boutique hotels in Miami Beach and South Florida. It runs a marketplace for rooms close to expiring unsold.
The panel’s themes map onto both: do more with existing staff and fill rooms that would have earned nothing.
MAIN also reported on the AI Hospitality Alliance’s new advisory board, announced as Delano Miami Beach reopened.
The takeaway for hotel owners is plain. AI will first be judged on the labor line, and the operators who test it early will set the pace.
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