5 ways to maximize technology value in a soft market
By Sunny Kurani
For select-service hotel owners, 2025 was a reminder that when margins are thin, every decision must deliver a big impact.
On the national scale, U.S. hotel occupancy has softened since 2024, with October 2025 recording the eighth consecutive month of year-over-year declines in occupancy and revenue per available room (RevPAR). Even as RevPAR is expected to rise 0.9 percent in 2026, a forecast by PwC points to continued margin pressure with select-service facing ongoing RevPAR headwinds, “leaving operators and owners with narrower cushions and higher stakes.”
With demand softening, cost control has moved from a financial goal to an operational imperative. In this environment, technology is often viewed as a necessary expense rather than a lever for savings.
But with a strategic approach, investing in the right technology can reduce operating costs, simplify management, and protect profitability – without blowing up the budget. This starts with thinking about hotel technology as a connected, modular ecosystem where access control, energy management, amenities, and more can communicate, share insights, and instantly adapt as needs change.
The key is shifting the conversation from “What’s the cheapest option?” to “What delivers the most value over time?”
Here are five ways to reframe your thinking around technology to maximize ROI.
1. Simplify the Stack: Fewer Vendors, Fewer Headaches
One of the most common cost traps in hospitality technology is fragmentation. Over time, many properties accumulate a patchwork of systems – Wi-Fi from one provider, energy management from another, security from a third, and support contracts for each one.
This piecemeal approach adds cost in ways that aren’t always obvious: Multiple licensing fees, overlapping contracts, inconsistent support, and more time spent managing vendors than running the business.
Consolidating solutions with fewer vendors can often lead to better pricing leverage, streamlined support, and simpler management, all of which can lower total cost of ownership (TCO), especially for select-service properties without dedicated IT staff. It also eliminates gaps in accountability and ensures that any troubleshooting does not get sidetracked by having to first identify the right vendor.
2. Think in Platforms, Not Products
Beyond the number of vendors involved, how well technology works together matters just as much. Some 65 percent of hoteliers cite integration difficulties as a top challenge, hindering innovation and increasing maintenance costs. The problem is compounded by the fact that 47 percent lack skilled tech staff, prolonging their reliance on outdated systems.
A platform-based approach built on a reliable network foundation helps ensure that systems integrate smoothly rather than competing for bandwidth or data – or not working together at all. From access management and digital keys to room environment controls, asset tracking, and staff safety devices, it also provides the f lexibility hotels need to scale and upgrade tech stacks without upending existing infrastructure.
Robust Wi-Fi is the essential backbone of modern hotel operations, supporting not only guest experience but also operational systems that improve efficiency and reduce costs. When technologies are designed to be flexible and can work together from the start, hoteliers avoid costly retrofits, compatibility issues, and unexpected upgrade requirements.
3. Focus on Long-Term Value
For budget-conscious operators, upfront cost is important, but it shouldn’t be the only deciding factor. Lower-priced, residential-grade hardware may seem appealing, but frequent replacements, limited capacity, lack of support or updates, and poor durability can quickly erase any initial savings.
Industry data reflects this reality: Hotels now allocate an average of 4.25 percent of total revenue to technology, but nearly 60 percent of that goes toward maintaining existing systems, not deploying new ones.
Commercial-grade solutions designed for hospitality environments tend to last longer, support remote updates, and adapt as standards change.
4. Energy Management: A Fast Path to Savings
If there’s one area where technology consistently proves its ROI, it’s energy management. Automated energy management systems (EMS) can significantly reduce utility expenses by adjusting HVAC systems based on predictive analytics around occupancy and real-time room and weather conditions.
Modern EMS platforms are affordable and relatively easy to deploy. Because they’re built on Wi-Fi infrastructure, they’re accessible even for smaller properties. Smart EMS deployment can reduce energy costs, saving up to $160 per room per year. The system can pay for itself in less than 16 months, providing ongoing ROI that can be reinvested to drive further efficiencies.
5. Security as Risk Reduction
Security is another area where taking the budget route can become expensive. In 2024 alone, 82 percent of hotels in North America were hit by cyberattacks, with the average cost of a breach hitting nearly $3.86 million. The risks and associated costs are only growing as threats become more sophisticated, with both digital and physical security systems being targeted to create vulnerabilities.
Outdated or unsupported systems increase the risk of data breaches, compliance failures, and operational disruptions. If an event occurs, it often forces rushed, unplanned upgrades at premium prices, not to mention extended downtime and reputational damage that add to the cost.
Rules-based security solutions built into network infrastructure can protect guest data and operational systems without the cost or complexity of enterprise-grade tools that exceed select-service needs. By ensuring those protections extend to physical security systems such as access control and surveillance, hotels can minimize risk without over-engineering to align with any budget.
Advocate for Choice with Franchises
Finally, owners shouldn’t underestimate their influence with franchise brands. Many select-service operators are constrained by preferred-vendor lists that prioritize standardization over cost efficiency.
Yet franchise success depends on franchisee profitability. With technology budgets already tight, owners have an opportunity to push for flexibility. Demonstrating that alternative, standards-compliant solutions can deliver equal or better performance at a lower cost strengthens the case for expanded choice.
Smart Strategies Boost Bottom Lines
Technology doesn’t have to be a budget drain. With a consolidated, platform-based approach, a focus on long-term value, and strategic investments in energy management and security, select-service hotels can control costs while strengthening operations. In addition, smart technology investments can alleviate significant admin burden and stress on staff that’s already spread thin.
In an uncertain economy, smarter technology decisions aren’t about spending more – they’re about spending wisely on investments that work harder over time.
Mahmood (Sunny) Kurani is an enterprise account manager at Vingcard, an AAHOA Silver Industry Partner and parent company to Nomadix. A hospitality executive with 25 years’ experience in ownership, operations, and franchised businesses, he also serves as vice president of North Texas Hospitality, LLC and is co-owner of multiple limited-service hotels in North Texas.
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