The 2026 Hotel Business Green Book Brands Report featured insights from Christian Charnaux, chief development officer, Hilton; Larry Cuculic, president/CEO, BWH Hotels; Chris Guimbellot, president/CEO, hihotels by Hospitality International; and John Murray, CEO, Sonesta International Hotels Corporation.
The leaders were also asked: What is the biggest challenge your company is facing in the current environment, and how are you addressing it?
Here are their responses:
Charnaux: We continue to partner closely with owners to maximize margins and deliver industry-leading cash-on-cash returns. That means we are focused on driving top-line performance, improving our industry-leading market share and delivering efficiencies in the middle of the P&L. We have also introduced a new program for owners that will reduce fees for hotels that drive high-quality stay experiences for guests, further increasing owner margins.
Cuculic: The primary challenge in today’s environment is ongoing economic uncertainty, which continues to impact traveler confidence and increase price sensitivity. The great news for us is that Best Western Hotels & Resorts remains a trusted brand recognized for quality and consistency. We are outperforming our competitors, with our North America RevPAR Index reaching 107.9 year-to-date (as of September 2025), underscoring the brand’s strength in a market where travelers are increasingly value driven. To address these headwinds, we are leveraging technology to create a seamless customer journey while staying true to what differentiates us: our deep local connections, which enable our hotels to deliver the most welcoming and personalized guest experiences.
Guimbellot: The biggest challenge we are facing as a company is growth in an environment where market uncertainty has made sales sluggish. Hoteliers are consistently managing increasing operating costs and remain cautious about investing in brand conversions. Expenses for limited-service properties are up 3.7% year-over-year, driven by increases in labor, insurance and property taxes. In addition, ongoing labor shortages—exacerbated by recent ICE enforcement actions—have made it even more difficult for owners to recruit and retain staff, further impacting operational efficiency and guest service. As a result, all hotel franchise companies are now competing for a smaller pool of qualified prospects, intensifying competition and making it more difficult to achieve our growth targets.
To address these concerns, our strategic initiatives involve enhancing hihotels’ flexible deal structure and further customizing contracts to accelerate positive revenue opportunities for franchisees. They also have the autonomy to direct incentives—whether toward fees, signage or other hotel requirements—in a manner that best suits their needs.
Murray: Economic uncertainty remains the primary challenge industry-wide, as we have seen revenues go flat and expenses increase for rooms and F&B labor, insurance and utilities. Ultimately, given the rates of inflation, tariffs, cost of renovation labor and materials, expenses are growing faster than revenues in most segments. To most effectively circumvent this uncertainty, Sonesta is leaning into its managed segments like groups and contract business, where we have the most control, as well as providing incentives for corporate negotiated accounts to maintain the levels of transient business. Recently, Airbnb launched a new pilot program that introduces independent hotels to their platform in Los Angeles, New York City and Madrid, which creates opportunities for participating hotels to acquire new bookings at a lower commission rate than an OTA. Sonesta is also continuing conversations with international hotel companies with a presence in the Caribbean and Latin America that are combating a lack of brand awareness in the U.S. market and exploring opportunities for growth without capital investment.
To read the rest of the Green Book Brands Report, click here.
