RI Hospitality Association outlines economic data
From Staff Reports
The RI Hospitality Association (RIHA) hosted its 22nd Annual Economic Outlook Breakfast on Sept. 9 at the Crowne Plaza Providence-Warwick Airport by IHG. The event brought together hospitality professionals, business leaders and policymakers to examine the economic landscape shaping Rhode Island’s hospitality industry in the year ahead.
The panel of speakers—including Chad Moutray, Senior Vice President of Research and Knowledge and Chief Economist at the National Restaurant Association; Farouk Rajab, President/CEO of the RI Hospitality Association (RIHA); and Justine Oliva, Ph.D., Director of Policy and Research at the Rhode Island Public Expenditure Council—presented insights into the national, regional and local economic outlook for the hospitality sector.
According to Moutray, the U.S. restaurant industry continues to show resilience despite slowing growth. National food-service employment surpassed 15.7 million in 2025, but job gains have been uneven, with higher labor costs and commodity price spikes—including double-digit increases in eggs, coffee and fresh vegetables—weighing on profitability. Consumer behavior has shifted significantly since the pandemic, with off-premise dining now accounting for 73% of traffic, up from 61% before 2020, driven by growth in drive-thru and delivery. Moutray emphasized that while inflation remains a concern, steady wage growth and consumer demand are expected to sustain moderate sales increases into 2026.
Rajab presented an analysis of Rhode Island’s lodging industry, projecting flat occupancy rates but a 1.5% increase in both average daily rate (ADR) and revenue per available room (RevPAR) statewide in 2026. Key markets such as Providence and Newport continue to show steady demand, with incremental rate growth expected across the state. He noted that while corporate travel recovery remains slow, group and leisure segments are expected to sustain performance in the coming year.
From a statewide perspective, Oliva highlighted a mixed picture for Rhode Island’s economy. Unemployment has risen above the regional and national averages for several consecutive quarters, while labor force participation has trended downward. At the same time, consumer spending has grown, and residential wealth has increased due to higher home values. Preliminary 2025 data show nearly 600 new jobs added in leisure and hospitality year-over-year, signaling cautious optimism for the sector’s recovery.
“The insights we heard at this year’s Economic Outlook event reflect both the headwinds and opportunities facing Rhode Island’s hospitality industry,” said Rajab. “As we look to 2026, our mission remains clear: to support our members with training, advocacy and resources that will help them adapt and thrive in a changing economy.”
Key takeaways:
• Restaurant industry: sales expected to grow in 2026, though at a slower pace; off-premise dining now dominates traffic patterns; operators cite the economy and labor costs as top challenges
• Lodging sector: Rhode Island hotel market projects stable occupancy, with modest growth in ADR and RevPAR (+1.5%) across key markets.
• Rhode Island economy: unemployment trending above U.S. average; labor force participation down; leisure and hospitality employment showing modest gains
• Workforce development: labor shortages, rising costs and housing affordability remain critical issues affecting recruitment and retention.
With more than 900 food-service, hotel, vendor and other hospitality members in Rhode Island, the RI Hospitality Association has been the voice of the hospitality industry in the state
since 1963.
