In this episode of Hospitality Talks, Abid Butt and Sam-Erik Ruttmann discuss the pressing challenges faced by hotel owners in today's business environment, including margin squeeze, rising costs, and the importance of digital transformation. They explore investment strategies for real estate investment trusts and welcome industry veteran John Bortz to share insights from his extensive experience in hotel asset management and development.For hotel owners in 2026, a persistent “margin squeeze” continues to present headwinds. This is a result of increasing costs, which exceed revenue growth, particularly in areas such as labor, utilities, and technology. In response, owners are prioritizing margin protection through stronger operational oversight and digital transformation. While the sector continues to stabilize, challenges persist, including elevated capital costs, labor shortages, rising insurance costs, higher property taxes, and ongoing liquidity pressures. At the same time, particularly for public REITs, public market valuations reflect discounts to Net Asset Value. This raises a critical question: when should owners reinvest in their portfolios versus capitalize on discounted share prices through buybacks?