Hotels Tap AI to Slash Costs and Elevate Guest Experience

The hospitality industry is undergoing a technological transformation, with artificial intelligence (AI) and robotics delivering dramatic savings and service upgrades. Automation is helping hotels cut operational costs by 30 to 40 percent while simultaneously enhancing guest satisfaction and boosting revenue strategies. Industry forecasts suggest the AI-driven hospitality market will reach $1.46 billion by 2029, climbing at a compound annual growth rate (CAGR) of 57.8 percent. Meanwhile, the broader robotics sector in hospitality is set to balloon from $24.38 billion in 2024 to $107.24 billion by 2034.

At the center of this shift is Nightfood Holdings Inc. (NGTF), a hospitality innovator blending hotel ownership with a Robotics-as-a-Service (RaaS) business model powered by AI. The company recently announced its acquisition of a 155-room Holiday Inn in Victorville, California, which will be the first of its kind to deploy guest-facing robots like food runners and laundry bots, developed by Nightfood’s tech subsidiary, Skytech Automated Solutions. In collaboration with Bear Robotics, Nightfood aims to scale these automation tools across a growing portfolio projected to reach $80 million in assets. The company joins a forward-thinking group of operators in the AI and hospitality space, including Starbucks, Domino’s Pizza, Airbnb and Richtech Robotics.

𝘏𝘰𝘴𝘱𝘪𝘵𝘢𝘭𝘪𝘵𝘺 𝘔𝘦𝘦𝘵𝘴 𝘏𝘪𝘨𝘩 𝘛𝘦𝘤𝘩

AI is rapidly reshaping how hotels operate. A recent Business Research report highlights how AI improves revenue management, enhances cybersecurity, and personalizes guest experiences. Features like biometric check-ins, virtual room previews, and AI-driven sustainability practices are becoming standard offerings, with the hotel AI market expected to sustain a growth rate exceeding 50 percent CAGR in coming years.

Market Research Future projects that robotics in hospitality will grow even faster, at over 71 percent CAGR through 2034. Personalization is a key driver. As guests increasingly demand custom experiences, hospitality robots can provide real-time concierge services, activity recommendations, and control over room settings. This automation not only boosts satisfaction and loyalty but also helps solve the industry’s persistent labor shortages.

Nightfood is tapping into these demands with AI-powered automation that directly addresses operational pain points. From guest delivery to cleaning and laundry management, their robots are designed to replace routine labor with efficient, reliable tech.

𝘉𝘶𝘪𝘭𝘥𝘪𝘯𝘨 𝘢 𝘚𝘮𝘢𝘳𝘵𝘦𝘳 𝘏𝘰𝘵𝘦𝘭 𝘗𝘰𝘳𝘵𝘧𝘰𝘭𝘪𝘰

Nightfood is strategically assembling a high-value hotel portfolio expected to reach $80 million through a series of acquisitions. The focus is on premium-branded properties in strategic locations, allowing for seamless integration of AI and robotics solutions.

The Victorville Holiday Inn acquisition is the company’s flagship move. Valued at approximately $41 million, the hotel will be converted into a Courtyard by Marriott and feature extensive automation upgrades. Located along the busy corridor between Los Angeles and Las Vegas, it is well-positioned for steady traffic and profitability.

Nightfood has also signed a letter of intent to acquire a second property, a Hilton Garden Inn in Rancho Mirage, near Disney’s upcoming Cotino development, for around $37 million. Both hotels will serve as operational testbeds for the company’s AI systems, helping refine robotic tools before broader rollout to third-party operators.

These acquisitions are part of a larger vertically integrated strategy that allows Nightfood to test, optimize and scale automation while retaining full control over asset performance and guest experience.

𝘈𝘶𝘵𝘰𝘮𝘢𝘵𝘪𝘰𝘯 𝘢𝘴 𝘢 𝘚𝘦𝘳𝘷𝘪𝘤𝘦

Nightfood’s business model combines recurring RaaS revenue with long-term real estate value. Skytech Automated Solutions, its robotics arm, develops hotel-specific automation tools, including concierge bots, autonomous cleaning units, and delivery robots, all offered on a subscription basis to reduce upfront investment for operators.

This creates a recurring income stream independent of occupancy rates, while also elevating efficiency and service quality at each property. Once proven, Nightfood plans to license its systems to other hotel operators, further expanding its influence and revenue beyond its owned portfolio.

By embedding automation as a core function, not an afterthought, Nightfood positions itself as a new category of hospitality company. It does not merely operate hotels. It operates intelligent, tech-enabled service platforms designed to deliver both immediate savings and long-term scalability.

𝘓𝘦𝘢𝘥𝘪𝘯𝘨 𝘣𝘺 𝘋𝘦𝘴𝘪𝘨𝘯

What sets Nightfood apart is not just the technology, but how it’s implemented. By owning the properties where robots are deployed, the company can iterate in real time, refining both performance and integration. This feedback loop allows for faster innovation, with direct insight into how automation impacts operations and guest experience.

Leadership is another advantage. The executive team behind Nightfood brings decades of experience across hotel development, operations, and real estate management, having worked on more than 50 hotel projects and overseen 130+ properties. This operational discipline ensures that each acquisition fits the broader growth strategy, while maintaining fiscal responsibility and high guest standards.

Properties are evaluated based on location, brand strength and long-term market viability. This targeted approach helps Nightfood minimize risk and maximize performance, even as it pushes the envelope with AI and robotics.

𝘈 𝘉𝘳𝘰𝘢𝘥𝘦𝘳 𝘐𝘯𝘥𝘶𝘴𝘵𝘳𝘺 𝘚𝘩𝘪𝘧𝘵

Nightfood’s rise comes amid a wave of tech-driven innovation across hospitality and food service. Starbucks recently introduced Green Dot Assist, an in-store generative AI assistant that helps baristas access information in real time. Domino’s has teamed up with Microsoft to develop an AI-powered store manager assistant and enhance customer ordering experiences.

Airbnb CEO Brian Chesky has gone public with plans to transform the platform into an “everything app,” powered by AI and personalized concierge-style features. Meanwhile, Richtech Robotics continues to roll out its Skylark and Richie delivery robots, capable of providing food service, cleaning and guest interaction.

Each of these moves underscores a shared industry direction: using AI to drive smarter, more personalized service at scale. Nightfood’s strategy fits squarely into this trend, but with a unique edge, full control of the real estate, the robots and the revenue.

As automation becomes a mainstay in the hotel industry, Nightfood’s vertically integrated model may serve as a blueprint for the future, one where hospitality is not just high-tech, but also high-touch, efficient and endlessly adaptable.

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𝘈𝘥𝘢𝘱𝘵𝘦𝘥 𝘧𝘳𝘰𝘮 𝘳𝘦𝘱𝘰𝘳𝘵𝘪𝘯𝘨 𝘣𝘺 𝘛𝘳𝘢𝘷𝘦𝘭 𝘈𝘨𝘦𝘯𝘵 𝘊𝘦𝘯𝘵𝘳𝘢𝘭

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