Major hotel giants such as Wyndham, Hilton, Marriott, and Hyatt recently reported U.S. RevPAR (revenue per available room) declines in the third quarter. Out of the four, Wyndham saw the biggest drop of 5% year over year, according to Hotel Dive.
Marriott’s results revealed the value of betting on a luxury offering in times of economic uncertainty. The strategy aligns well with the industry’s projections for this year.
“While leisure travel, a primary driver of post-pandemic recovery, is expected to moderate as consumer savings contract and credit card debt rises, corporate, group, and international travel are anticipated to accelerate significantly,” reveals Niambi Business Strategies’ 2025 Global Hospitality Financial Report.
“This fundamental change in traveler archetype will likely benefit urban markets and higher-priced hotels, which traditionally cater more to these segments, potentially leading to their outperformance in 2025.”
In October, more than 3,000 hospitality companies gathered in Phoenix for the Lodging Conference. As reported by HotelDive, the companies revealed that the biggest challenges hotels face include:
- Economic uncertainty
- Rising labor and real estate expenses
- Turbulent travel environment
- Tariff pressures
According to experts, the opportunities for growth lie in luxury offerings and leveraging artificial intelligence for both guest experience and operational efficiency. Just recently, Wyndham confirmed it has deployed 230 AI agents serving more than half a million customers.
While hotels note the challenges they are facing, their workers are demanding better working conditions, creating yet another challenge for several hospitality leaders.
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Hilton, Wyndham workers strike in Philadelphia and Los Angeles
Employees at two hotels owned by RLJ Lodging Trust (RLJ) and operated by Aimbridge Hospitality in Los Angeles and Philadelphia commenced a strike on Nov. 8, according to a release from hospitality worker union Unite Here Local 11.
Hotel workers at the Hilton Garden Inn hotel in Hollywood started a picket line at 6 a.m. local time on Nov. 8, while workers at the Wyndham Historic District hotel in Philadelphia also walked out of their jobs the same day.
“Whether we strike is up to the employers and how willing they are to pay us fairly for the work we do. We’re ready for anything,” stated Maria Christina Velasquez, a shop steward with UNITE HERE Local 11 and laundry attendant at the Hilton Garden Inn Hollywood since 2019, as reported by BusinessWire.
RLJ Lodging Trust owns a portfolio of close to 100 hotels across 23 states and the District of Columbia. According to Yahoo Finance, the company recently reported a year-over-year drop in both revenue and net income, with the company shifting from net income to a US$3.74 million net loss in the quarter ended September 30, 2025.
Earlier this year, RLJ Lodging Trust donated $25,000 to the effort to defeat a $30 minimum wage for hospitality that the Los Angeles City Council passed in May, according to the report from United Here Local 11.
Why are hotel workers striking?
The employees are striking in an effort to reach better working conditions, including higher salaries.
Unite Here Philadelphia announced the strike on its Facebook page:
“HOLD THE LINE: @wyndhamphiladelphia Workers are fighting for their dignity and respect on the job – as well as family-sustaining wages, humane staffing levels, and improvements to health care and pension. No matter the weather, we are fighting for what we deserve, together!”
Related: Hyatt launches major 30%-off limited sale for loyal members
Brent Allen, a restaurant server and member of UNITE HERE Local 274 at the Wyndham Historic District since 2023, argued that workers are unable to pay everyday bills with their current wages. Allen said they are only demanding what they have already earned.
“Hotel workers like me go on strike to win raises that keep up with the rising cost of living, pensions, high quality union healthcare, and safe workloads. We’re going to welcome millions of visitors to Philly in 2026, but most of us can’t pay our basic bills. We deserve to be able to live dignified lives but that can only happen if the hotel owner and operator pay us what we deserve,” Allen told BusinessWire.
The hotel owner and operator have yet to issue an official statement regarding the Nov. 8 strikes at the Hilton Garden Inn Hollywood and the Wyndham Historic District. However, Aimbridge Hospitality, the operator of both properties, previously commented on its goals regarding union labor agreements.
In an effort to settle prior disputes with UNITE HERE Local 11, Mark Tamis, Global President, Aimbridge, stated, “We are pleased to move forward with a memorand[um] of agreement with UNITE HERE Local 11 that reflects our commitment to our associates and includes thoughtful increases in non-tipped wages and continued contributions to health care and retirement… We will continue to foster the Aimbridge WAY culture for our associates and help them thrive by offering competitive compensation and benefits, unmatched training and development, and the most robust job opportunities in the industry.”
Recent similar action in Philadelphia resulted in better working conditions
The strikes come on the heels of a similar action from union workers at the Sheraton Philadelphia Downtown and the Hampton Inn Philadelphia Center City in October, which lasted four days and resulted in a better deal for workers, reports Hotel Dive.
“Hampton Inn Philadelphia Center City unanimously ratified a historic contract with major improvements to wages, healthcare, and working conditions. The Hampton Inn is the first of eight Center City hotels to settle a new contract with UNITE HERE Local 274,” reads Unite Here’s Nov. 8 press release.
No additional information on the Sheraton Philadelphia Downtown workers’ strike was provided.
Strike after strike after strike
In July 2023, over 10,000 hotel workers (at around 52 hotels in L.A. and Orange County) walked out, demanding big wage increases, better health care, and protection, reported CNBC.
After many strike days and negotiations, by March 2024, workers at 34 hotels ratified a contract, with a 98% “yes” vote, according to Unite Here.
Aimbridge-operated properties were among the last to settle during the 2023-2024 Southern California Hotel Strike, the largest hotel strike in modern U.S. history, according to Hotel Dive.
In April 2024, hundreds of workers at Aimbridge-operated hotels in Southern California were striking in an effort to address harassment and verbal abuse.
“Workers across 35 hotels have successfully ratified their historic union contracts at other Marriott, Hilton and Hyatt properties across Southern California. Aimbridge Hospitality has failed to meet the new standard,” read Unite Here Local 11’s April 11, 2024, press release, as reported by BusinessWire.
Then in September 2024, another major hotel-worker strike happened. Around 10,000 U.S. hotel workers began a multi-day strike in several cities, after contract talks with hotel operators Marriott International, Hilton Worldwide, and Hyatt Hotels stalled, reported CNBC.
The strike occurred during the Labor Day weekend, one of the peak holidays for the travel industry.
“Workers are calling for higher wages, fair staffing and workloads, and the reversal of COVID-era cuts. They say their wages aren’t enough to cover the cost of living, and many have to work two jobs to make ends meet,” read the report from Unite Here.
In some locations, such as San Francisco, the strike ended with a better deal, reported the San Francisco Chronicle.
On Nov. 10, members of Teamsters Local 986 at the Rio Hotel and Caison voted overwhelmingly to authorize a strike over unfair labor practices (ULPs). The vote followed nearly two years of stalled negotiations with Dreamscape, the property’s owner and an affiliate of Hyatt Resorts.
Related: Marriott bets that an overly forgiving policy can retain key guests
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