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The Real ROI of Hotel Robots: Staff, Guests, and the Bottom Line
By Robert Rauch
Tuesday, 24th March 2026
 

Nine years ago, I stood at a trade show watching a delivery robot navigate around a mock hotel lobby. My first thought? “Interesting gimmick.” My second? “Will guests actually want this?”

Fast forward to today, and I’m running three hotels with robots named Hubert, Robin, and Batman working alongside our teams. And here’s what I’ve learned: the conversation about robotics in hospitality isn’t about replacing people—it’s about reimagining what exceptional service looks like when you give your team the right tools.

I recently sat down with Jeff Peterson from Relay Robotics for an unfiltered conversation about where this industry is headed. What emerged wasn’t a tech pitch, it was a candid discussion about labor challenges, guest expectations, and why the hotels that figure this out now will have a massive competitive advantage in the next decade.

Why Hotel Robots Aren’t Replacing Staff

Jeff didn’t hesitate when I asked about the biggest misconception in our industry: “The biggest misconception is that robots are here to replace people. Robotics to me, is very much the same way [as software]. It’s a tool that hotels can build into their existing processes to supplement their staff, empower them, and elevate the experience, rather than sort of think about it as a replacement for a person.”

And he’s absolutely right. Every robot we’ve deployed has improved our employees’ jobs, not made them obsolete. Our front desk agents love not having to lock the door at 2 a.m. to run up the toothpaste. Our housekeepers appreciate not throwing out their backs vacuuming repetitive hallways. Our guests? They’re taking selfies with the robots and mentioning them in five-star reviews.

Rising Labor Costs Are Accelerating AI Adoption in Hotels

Here’s the reality: minimum wages are climbing. $30 in Los Angeles, $25 in San Diego, and the ripple effects are hitting small towns across the country. We love our team members. We pay 90% of their healthcare. But when labor costs spiral and profit margins shrink, operators face an impossible choice: cut service quality or find smarter ways to work.

As I told Jeff during our conversation, “We might be looking at robots that cook, robots that check guests in, robots that clean.” That future isn’t decades away; it’s happening now in select properties. The question is whether we’ll use this technology to enhance the human experience or simply cut costs at the expense of service.

Three Ways Robotics in Hotels Drive Measurable ROI

Jeff breaks down the ROI into three pillars that every owner should understand:

1. Hotel Staff Efficiency Without Sacrificing Service Quality
“It’s about making sure that you’ve got the right person on the right problem at the right time. So the experience is optimized, and your labor is optimized,” Jeff explains. Translation? Your front desk agent stays at the front desk during check-in rushes. Your housekeeping team focuses on the detailed work that requires a human touch. The robot handles the repetitive runs that nobody enjoys anyway.

The efficiency gains compound during peak periods. Think about breakfast service from 6-9 a.m., when 80% of your robot’s deliveries might happen. Without adequate throughput, you’re creating bottlenecks. With the right robot-to-room ratio, you’re creating bandwidth for your team to focus on revenue-generating activities.

2. Guest Experience Technology That Drives Reviews and Rebookings
This one surprised both of us. Jeff admits, “The most surprising thing to me is actually the customer experience benefit that people get from it. People love the robot. It drives reviews. It makes them ask about room service; kids, especially, take pictures with it, right? It really is a game changer for experience, and it’s not just a tool.”

At our San Marcos, California, property, we held a staff contest to name the robot. They chose “Hubert”—short for Hub of Entertainment, Retail, and Transportation, the nickname for the 78 Corridor where we’re located. That kind of personality injection turns a piece of equipment into a memorable part of the guest experience.

Our robots have become mascots. Kids go gaga over them. Guests post photos on social media. Reviews specifically mention the robots as a memorable part of their stay. That’s competitive differentiation in a crowded market.

3. New Revenue Streams From Automated Hotel Services
Robots create bandwidth for new services. VIP coffee delivery for loyalty members. Frictionless late-night pantry orders. Uber Eats deliveries that don’t require drivers wandering your hallways. “Add new services like are we doing a VIP morning coffee experience for frequent stayers? There’s any number of ways that you can leverage it to sort of increase the value of what you’re already doing,” Jeff notes.

One of our properties has seen measurable increases in pantry sales simply because delivery is now frictionless. Guests who wouldn’t have called down for a snack at midnight will absolutely order one when they know a robot will quietly deliver it to their door.

AI in Luxury Hotels vs. Limited-Service Properties: Finding the Right Balance

I recently debated this with a luxury hotel operator who insisted their guests would never accept robots. My response? “Gen Z and millennials, even if they’re staying at 5-star hotels, they’re not offended by technology in the right places.”

Jeff agrees there’s nuance here: “I don’t see a robot checking anyone in at the Four Seasons anytime soon, but you can certainly see a lot of more technology-forward hotels where the robotics are picking up more of the tasks because the customer experience, the expectations a little bit different.”

The key is knowing where the human touch matters most. Checking in a VIP with complex requests? That’s your best front desk agent’s moment to shine. Delivering extra towels at 11 p.m.? That’s where contactless convenience actually enhances the experience.

For 1-3 star hotels, automation can be more aggressive. I view the front desk role evolving into more of a “host” position—there for guests who need human assistance, especially older demographics, while tech-savvy guests handle everything digitally.

Which Hotel Tasks Should Never Be Automated

We both agreed on this: some experiences demand human connection. Jeff puts it well: “You do need a human experience. You do want to ideally have a human at this point check you in, or provide sort of a level of white glove experience.”

The goal isn’t to automate everything, but to automate the chores so your team can focus on the service moments that actually differentiate your property. Tasks that should remain human-first include complex check-ins, handling guest complaints, providing local recommendations, and any situation requiring empathy or nuanced problem-solving.

How Hotel Staff Learn to Work With Robots (It’s Easier Than You Think)

Age matters here. Younger employees embrace robots instantly. Older team members love them too, but there’s initial hesitation. Not because they can’t learn, but because they’re nervous about new technology. As I’ve seen firsthand, “The fear factor is based not always, but oftentimes on age.”

But here’s the thing: the actual learning curve is minimal. As Jeff explains, “Most of the hard work is done before you get there. It’s already integrated with the elevator as part of implementation. The hotel is mapped as part of implementation. All you need to do is learn how to enable the robot to do its task, which is the easy part.”

Within days, even our most skeptical team members were programming deliveries like pros. The software interface is intuitive—select the room number, load the item, and the robot handles the rest autonomously.

What Makes a Hotel “Robot-Ready” for Automation

Not every property is equally suited for robotics, but most can make it work. Jeff outlines the key factors: “You want to make sure that you have an elevator system that is relatively standard… you want to make sure that you have an interesting problem to solve around staffing… or you might have the opportunity to leverage the robot for food service and really build out a program.”

Critical considerations include:

  • Elevator compatibility – Most standard elevator systems work with Relay’s integration
  • Property size and layout – Both small hotels and large hotel-casinos can benefit, but robot-to-room ratios matter
  • Service volume – If 80% of deliveries happen during breakfast hours, you need throughput capacity
  • Staffing challenges – Properties with minimum wage pressures or overnight single-staff situations see immediate benefits
  • Revenue opportunities – Hotels with existing but underutilized room service or pantry sales can drive new income

The biggest mistake hotels make? “Not thinking about integrating it into the full experience and getting sort of pigeonholed into just like one or two use cases,” Jeff warns. Robots work best when you really think through the complete guest and operational experience.

The Future of Robotics in Hospitality: What to Expect by 2035

When I asked Jeff what hospitality will look like in 2035, his answer was striking: “In 9 years, this conversation will seem anachronistic in a way because robots will be everywhere. You won’t expect anything different. You will be in a hotel and the robot will be cleaning the carpet, integrated into the experience.”

He’s right. Just like we don’t think twice about using Uber or ordering DoorDash, autonomous service will become the baseline expectation. The hotels that adopt now won’t just save on labor—they’ll build a competitive advantage that compounds over time.

Jeff predicts that robotics will become part of brand standards: “It’ll be standard sort of for a lot of brands. It’ll be kind of an expectation, right? In the same way that apps have made food delivery ease an expectation or Uber an expectation, this sort of automation of on-demand services will extend to hospitality and robotics in hotels.”

The hotel role that will look most different in five years? We both agreed: housekeeping. The repetitive tasks—vacuuming, delivering supplies, cleaning up spills—are prime candidates for automation, freeing housekeepers to focus on detailed room preparation that requires a human touch.

One Word That Defines What Hotel Robots Deliver: Bandwidth

At the end of our rapid-fire round, I asked Jeff what robots give hotels more of. His answer? “Bandwidth.”

That’s exactly right. Bandwidth for your staff to focus on what matters. Bandwidth for your operation to handle peak periods without adding headcount. Bandwidth for your guests to get what they need, when they need it, how they need it.

After nine years with robots on property, I can tell you they’re not a gimmick. They’re not a threat to jobs. They’re a tool that, when used thoughtfully, makes everyone’s experience better—employees, guests, and yes, even the bottom line.

The question isn’t whether robotics will become standard in hospitality. The question is whether you’ll be leading the change or scrambling to catch up.

Want to dive deeper? Over the coming weeks, we’ll be breaking down specific aspects of hotel robotics—from implementation best practices to which hotel roles will transform in the next five years. Subscribe to stay ahead of the automation curve.

Robert Rauch is a hotel owner and operator with decades of experience in the hospitality industry. His properties in San Marcos and San Diego, California have been early adopters of robotics technology, integrating Relay Robotics delivery robots across multiple locations.

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