Takeaways From ALIS Law 2026: Where Hotel Deals Actually Get Stuck and How to Keep Them Moving

If there is one recurring friction point in today’s hotel market, it is not access to capital or demand uncertainty. It is execution — particularly where brand expectations, asset condition and ownership economics collide.

Among speakers at the 2026 Americas Lodging Investment Summit (ALIS), that friction surfaced most often around property improvement plans (PIPs), contracting speed and the growing gap between how quickly business decisions are made and how slowly disputes can form.

Breaking PIP Stalemates Before They Harm the Asset

Frequently, PIPs become flashpoints when an asset’s condition begins to affect guest satisfaction scores. Brands focus on protecting standards, while owners focus on cost, timing and return, and managers are caught in between.

Some of the more constructive approaches that are gaining traction include:

• phased or prioritized PIPs tied to guest-impacting elements first, rather than all-at-once compliance.

• trigger-based capital commitments, where certain improvements activate only if performance thresholds are missed.

• cost-sharing or deferral mechanisms when standards evolve after acquisition or brand conversion.

The goal is not to avoid capital investment, but to ensure that capital deployment aligns with operational reality and market performance.

Structuring Around Conflict Instead of Hoping to Avoid It

PIP disputes often escalate because agreements assume alignment rather than plan for disagreement. Owners and brands benefit when contracts acknowledge that conditions, costs and standards will change.

Helpful structural tools include:

• clear escalation and resolution paths that require dialogue before default.

• defined timelines and flexibility around evolving brand standards.

• objective criteria for determining whether a PIP is solving the problem it was meant to address.

When these mechanisms are in place, disagreements are more likely to be resolved as business decisions rather than legal disputes.

Speed Matters: Improving Legal Processes to Match Business Reality

One quiet theme at ALIS was frustration with how long it can take to resolve issues that require fast decisions. In a modern hotel operation, delays can mean lost revenue, damaged brand perception or missed financing windows.

Legal teams can help by:

• simplifying agreements and reducing unnecessary complexity.

• standardizing provisions where possible to avoid renegotiating settled points.

• creating playbooks that allow common issues to be addressed quickly and consistently.

Efficiency is not about cutting corners. Rather, it is about removing friction where it adds no value.

AI and the Hotel Legal Function: Practical, Not Theoretical 

Presenters at the summit emphasized that artificial intelligence (AI) is the topic of the moment, but that in the hotel legal space, its near-term value is likely to be practical rather than transformative.

On the horizon are:

• faster contract review and issue spotting.

• more efficient diligence and compliance tracking.

• better visibility into recurring risk areas across portfolios.

Used thoughtfully, these tools can help legal teams keep pace with the speed of hospitality operations, while still exercising judgment where it matters most.

The Bigger Picture

The most successful hotel relationships today are not defined by perfect alignment, but by how quickly issues are identified and resolved. PIPs, brand standards and evolving technology are not going away, but conflict does not have to be the default outcome.

The key takeaway from ALIS is encouraging: with the right structure, process and mindset, many of today’s pressure points can become manageable, and in some cases, opportunities to strengthen long-term relationships.