Over 50 senior hospitality leaders gathered in Dubai last week for the annual FHS World Advisory Board meeting to shape the programme for the Future Hospitality Summit – FHS World 2026, taking place from 29 September to 1 October at Madinat Jumeirah in Dubai.
With the hospitality industry moving at high velocity toward a more institutionalised, tech-driven, and investor-centric future, the FHS Advisory Board comprising esteemed leaders from across the hospitality industry, identified the key market dynamics defining 2026 and beyond.
Here are four key insights that emerged from the Advisory Board’s discussions.
1. Middle East hotel performance leads the global stage
The data presented by STR during the Advisory Board meeting paints a picture of a region that continues to lead the global stage. The Middle East currently commands the highest average room rate (ARR) globally at USD$183, a 6% increase year-on-year. Abu Dhabi and Dubai remain top global performers with 81% occupancy, rivalled only by cities like Tokyo and New York. Globally, demand for hotel rooms is strong with the Eastern hemisphere leading growth, occupancy is still growing which in turn provides a platform for average daily rate (ADR) to rise.
In the GCC, demand continues to rise at a faster pace than supply with luxury still the main driver of demand with a year-on-year increase of 10%, while RevPar growth in the GCC was 10.1% in 2025.
2. There’s an institutional shift from family offices to ‘banker’ investors
A key theme of the meeting was the changing nature of hospitality investors. The industry is moving away from traditional family-run businesses toward institutional investors, pension funds, and sovereign funds.
These new owners approach hospitality through a different lens, focused on risk matrices, exit strategies, and dividend strategies. The board emphasised that for hospitality to remain attractive to this capital, the industry must provide clearer definitions of asset classes and more transparent reporting on the life cycle of asset deployment.
3. Wellness and longevity considered as a standalone asset class
The conversation around wellness has shifted from being a peripheral hotel amenity to a core investment pillar. The advisory board discussed that for wellness to be successful, it must be treated as a standalone, financially viable asset class rather than an add-on to a hotel’s offering.
As the younger generation of travellers prioritises lifestyle experiences, wellness and longevity are becoming defining factors in their travel choices. The board suggested that future investment should focus on the fundamentals of wellness such as optimising the sleep environment.
4. The need to bridge the technology trust gap
Technology spend is at an all-time high, with 78% AI integration in the hospitality sector this year, expected to reach 89% by next year. However, a significant trust gap remains between technical teams and hotel owners.
The board identified that the challenge is not just adopting AI but educating owners on its value creation and ROI. There is a move toward technology as an enabler of human interaction, automating back-of-house workflows and hotel distribution so that staff can focus on the guest experience. A critical future debate will centre on data ownership and whether brands, owners, or tech providers are truly in control of guest data.
The 2026 FHS Advisory Board meeting and networking reception was hosted by RIKAS Hospitality Group at Tagomago, The Palm Jumeirah in Dubai. With a clear ambition for FHS to become a year-round, digitally enabled platform for curated, intentional investment connections, organisers The Bench announced the launch of FHS Egypt, further extending the FHS portfolio into one of the region’s most strategically significant hospitality markets. The new event will build on Egypt’s accelerating tourism pipeline and growing investor interest, creating a dedicated forum for capital, development and operational dialogue in North Africa. FHS Egypt will take place on 10-11 November 2026 at the Sofitel Downtown Cairo Nile.