As founder of AGA Hotels, Armaan Patel is navigating many of the challenges facing hotel owners today, from rising labor and insurance costs to evolving guest expectations and the rapid adoption of AI. With a growing portfolio of hotels, Patel is focused on finding operational efficiencies while delivering the experiences guests increasingly demand.
Ahead of The Hospitality Show 2026, Advisory Board member Patel shares his perspective on the industry's biggest threats and opportunities, how AGA Hotels is leveraging AI across its operations and why creating memorable guest experiences remains one of the most effective ways to drive long-term profitability and performance.
What’s the biggest threat to hotel profitability right now, and what’s the biggest opportunity?
In Los Angeles, I think the biggest threat to profitability right now is the continued increase in labor and insurance costs. A lot of those expenses are outside of an operator’s control, and the rate at which they’re increasing year over year puts significant pressure on margins.
At the same time, I think the biggest opportunity is finding ways to create more value within the hotels we already operate. That means improving the guest experience, driving more direct business, and becoming more efficient operationally. In an environment where we can’t control every expense, we have to be much better at controlling the things we can.
What’s the one thing your company is doing today to optimize operations, improve efficiency, or drive better returns?
Our biggest focus right now is the guest experience. We’re constantly looking at how we can make every guest’s stay feel positive and special, even with the small details. We believe that when you create a great experience, it translates into better reviews, repeat guests, stronger word of mouth, and ultimately better performance for the hotel. For us, guest experience and profitability go hand in hand.
What guest expectation has changed the most, and how are hotels adapting without sacrificing margins?
I think guests today expect much more than just a clean room and good service. They want an experience. They care about the design, the atmosphere, the technology, the amenities, and even whether the hotel is somewhere they would want to share on social media.
The challenge is creating those memorable moments without adding significant operating costs. We’ve focused on improvements that have a high impact on the guest but are still efficient for the hotel with better designs, thoughtful amenities, stronger communication, and small touches that make a property feel unique.
Where do you see AI delivering the most tangible value in hotel operations over the next few years?
I think AI is going to have a major impact behind the scenes. At AGA Hotels we are implementing AI with Revenue management, guest communication, and reputation management.
For a company operating multiple hotels, one of the biggest opportunities is having AI help identify problems and opportunities across the portfolio much faster. Instead of spending hours going through reports, operators will be able to understand what needs their attention almost immediately. I don’t think AI replaces hospitality because hospitality is ultimately a people business, but it can give our teams more assistance.
Why is The Hospitality Show valuable to you personally, and how does it benefit your company?
The Hospitality Show is valuable to me because it brings together so many different sides of our industry in one place. As a young hotelier, I’m always looking to learn from people who have been in the industry longer than I have, while also connecting with the next generation of hospitality leaders.
For our company, it gives us an opportunity to discover new technology, meet potential partners, learn what other operators are doing, and bring ideas back to our hotels. Some of the best ideas come from conversations with other people who are dealing with the same challenges we are.