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Transactions on Engineering and Computing Sciences - Vol. 13, No. 02
Publication Date: April 25, 2025
DOI:10.14738/tecs.1302.18483.
Marsella, F. N. U., & Paul, S. (2025). How AI is Transforming Real Estate: Insights from the Hospitality & Multifamily Sectors.
Transactions on Engineering and Computing Sciences, 13(02). 102-115.
Services for Science and Education – United Kingdom
How AI is Transforming Real Estate: Insights from the Hospitality
& Multifamily Sectors
FNU Marsella
Baker Program in Real Estate, Cornell University, United States
Sanil Paul
Baker Program in Real Estate, Cornell University, United States
ABSTRACT
Artificial intelligence (AI) is transforming the hospitality and multifamily real
estate sectors, enhancing revenue management, customer experience, and
operational efficiency. This paper examines how AIdriven technologies are
reshaping these industries, highlighting their applications, benefits, and challenges.
In the hospitality sector, AI optimizes revenue through dynamic pricing, enhances
guest experiences with intelligent automation, and reduces operational costs via
predictive maintenance. Meanwhile, in the multifamily sector, AI streamlines
tenant screening, automates leasing, improves resident engagement, and integrates
smart home technologies to enhance security and efficiency. AI-powered market
analysis, rent optimization, and predictive maintenance further improve asset
performance in both sectors. Despite its transformative potential, AI adoption
presents challenges such as high initial costs, algorithmic bias in tenant screening
and pricing models, and data privacy concerns. The integration of AI with emerging
technologies like blockchain and IoT is also explored as a potential solution to
enhance security, transparency, and efficiency in real estate operations. By
analyzing real-world case studies and industry data in hospitality and multifamily
sectors, this study explores best practices for AI implementation, provides a
glimpse into what the future could hold for real estate with AI, and offers strategic
recommendations for stakeholders looking to maximize efficiency, profitability,
and long-term sustainability in an AI-driven real estate landscape.
Keywords: AI in real estate, predictive maintenance, tenant screening, assets automation,
dynamic pricing.
INTRODUCTION
Artificial intelligence (AI) is revolutionizing the hospitality and multifamily real estate sectors,
reshaping property management, leasing, customer engagement, and market analysis at an
unprecedented pace. By enabling data-driven decision-making, automation, and personalized
experiences, AI enhances operational efficiency and profitability while setting new industry
benchmarks.
Real estate professionals increasingly rely on AI to analyze vast datasets, predict trends, and
optimize operations (Arnold et al., 2023). In hospitality, AI-driven solutions improve guest
satisfaction, reduce costs, and maximize revenue through dynamic pricing, predictive
maintenance, and intelligent automation. Meanwhile, AI-driven solutions streamline leasing in
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Marsella, F. N. U., & Paul, S. (2025). How AI is Transforming Real Estate: Insights from the Hospitality & Multifamily Sectors. Transactions on
Engineering and Computing Sciences, 13(02). 102-115.
URL: http://dx.doi.org/10.14738/tecs.1302.18483
multifamily real estate, boost resident retention, and integrate smart home technologies for
enhanced security and convenience. AI-powered chatbots, property valuation models, and
predictive analytics are reshaping property management and real estate operations. Although
digital technology has been integrated into real estate for quite some time (Sawyer et al., 2003),
the rapid acceleration of AI-driven innovations is transforming the industry, unlocking new
opportunities (Baum, 2017).
Beyond property operations, AI is redefining customer experience by providing highly efficient,
tailored solutions. Natural Language Processing (NLP)-based chatbots and virtual assistants
streamline customer support, handle inquiries, assist with leasing, and facilitate seamless
property transactions. AI-powered predictive analytics enable personalized marketing,
allowing firms to offer customized property recommendations to buyers and tenants (Park,
2020). Additionally, Virtual Reality (VR) and Augmented Reality (AR) solutions provide
immersive property tours, reducing the need for multiple in-person visits and enhancing
decision-making. Sentiment analysis of customer reviews helps real estate and hospitality
businesses refine their services, improving offerings to drive customer satisfaction and loyalty
(Porter et al., 2019).
AI also plays a critical role in market analysis, leveraging predictive analytics to assess property
values and forecast market behaviors. AI rapidly processes vast amounts of data, including
historical pricing trends, economic indicators, and neighborhood developments, providing
precise property valuations. Investors and financial institutions use AI-powered risk
assessment tools to make wellinformed decisions, while mortgage assessment systems
streamline loan approvals by analyzing creditworthiness and mitigating financial risks
(Sharam, 2019). By optimizing operational workflows, AI enables businesses to stay
competitive and responsive to market trends.
In addition to revenue optimization, AI improves operational efficiency and reduces costs in
property management. Predictive maintenance tools detect potential equipment failures before
they escalate, reducing downtime and minimizing expenses. AI-driven energy management
systems analyze utility consumption and automate electricity, water, and heating usage,
promoting sustainability and cost-effective operations. Real estate developers and landlords
also use AI-powered space optimization tools to maximize property utilization and profitability.
However, while AI-driven dynamic pricing models benefit revenue generation, they raise
concerns about fairness and accessibility. Specific AI algorithms may create pricing disparities
based on browsing history, device type, or geographic location, potentially disadvantaging
some consumers. To maintain customer trust, businesses should implement transparent
pricing strategies and provide clear cost breakdowns.
As AI technology continues to evolve, its influence on the real estate industry will become even
more significant, shaping future strategies and innovation. AI-driven applications, including
smart automation, prescriptive analytics, and sentiment analysis, will continue to set new
industry standards for productivity, efficiency, and customer engagement (Ding, 2024). A study
by Siniak et al. (2020) highlights how machine learning algorithms help property managers
develop competitive pricing strategies by analyzing market fluctuations. These advancements
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Transactions on Engineering and Computing Sciences (TECS) Vol 13, Issue 02, April - 2025
Services for Science and Education – United Kingdom
signal a transformative shift, not only improving industry practices but also redefining the way
properties are managed, marketed, and transacted.
In the following sections, this paper explores how AI is revolutionizing these two sectors: its
profound impact on hospitality and its expanding role in multifamily real estate.
AI AND ITS IMPACT ON HOSPITALITY
In the hospitality industry, AI is transforming guest experiences, optimizing operations, and
redefining revenue management. These AI-driven advancements are not only enhancing
customer satisfaction but also streamlining business processes and driving profitability. By
leveraging vast datasets and real-time analytics, hotels can deliver hyper-personalized services,
automate routine tasks, and make data-driven decisions that improve efficiency and
competitiveness.
The diagram below provides a summary of AI’s impact across key areas in hospitality,
highlighting its transformative role in enhancing guest experiences, optimizing operations, and
driving revenue.
Figure 1: AI's Impact Across Key Areas in Hospitality Sector
Enhancing Guest Sentiment Analysis and Customer Feedback Management
AI-driven sentiment analysis is becoming an essential tool for hospitality businesses, allowing
them to track guest feedback and improve service quality. NLP technology scans reviews from
booking platforms, social media, and post-stay surveys, identifying common themes and
potential areas for improvement.