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Many hotel chains are racing to replace the plastic room key with digital options, including Apple Wallet and Google Wallet apps. Plastic hotel key cards have had a rough few years. During the pandemic, touch was taboo, so touchless trends accelerated. And cybersecurity concerns have mounted around hotel key technology. Earlier this year, researchers found a vulnerability in plastic hotel keys that could render up to three million keys easy prey for hackers and take years to fix.

Cybersecurity and safety issues have prompted many hotel chains to accelerate plans to transform hotel room door locks. While major U.S. chains have had the digital key capability for years, Google Wallet and Apple Wallet are jumping in by offering hotels the ability to save guests’ room keys to their wallets, enabling them to access their rooms by simply tapping the back of their phones against a reader near the door handle.   

Hilton Hotels has its Honors app, which allows guests to check in and use a room key through their smartphone. The 119-room Harpeth Hotel in Franklin, Tennessee, is a Hilton property, and guests can check in digitally and store keys in their Google or Apple wallet app.

“The benefit to the digital check-in is that your phone is the key,” said Kimberly Elder, director of sales for the Harpeth Hotel, adding that many guests still prefer the plastic key cards.

Eli Fuchs, regional director of operations at Valor Hospitality Partners, which has Hilton and Holiday Inn Express hotels in its portfolio, says digital is the next wave in hotel room door technology.

“Traditional hotel room keys are staring down the end of their existence,” Fuchs says.

However, some security experts caution that even the newer lock methods aren’t foolproof.

“Keyless systems can introduce entirely new threat vectors for hotel security operations to manage,” said Lee Clark, cyber threat intelligence production manager at Retail and Hospitality Information Sharing and Analysis Center (RH-ISAC).

While Clark says these threats can be mitigated through security control policies and configurations, such as multifactor authentication (MFA), these introduce extra steps that harried guests may not always want to jump through.

Clark says it’s unlikely that all hotels will replace all key cards with digital keys any time soon because some guests may prefer a key card or may not have a personal device compatible with digital lock systems, along with the expense.

“Transitioning to digital and keyless lock systems carries a significant cost in equipment, installation, maintenance, and security,” Clark said.

Hotel chains begin to require digital key systems

And human habits keep getting in the way, too.

For instance,  data from J.D. Power’s research on hotels found that only 14% of total branded hotel guests used digital keys during their hotel stay. Even guests who downloaded the brand’s app to their phones used the plastic key card.

According to J.D. Power data, among guests who have the app for the hotel company/brand, 30% use a digital key, and 70% use a plastic card most of the time.  

On the other hand, many hotels simply haven’t installed locks capable of digital entry.

“Several large hotel chains, whose apps are most likely to support digital keys, are beginning to require that hotel franchise owner to install new door locks as part of updated brand standards,” said Andrea Stokes, hospitality practice lead at J.D. Power.

Despite the slow adoption of digital options by customers, J.D. Power data does show that keyless customers feel safer than those using plastic cards.

“Guests using ‘digital key’ provide significantly more positive ratings for safety of the hotel compared to those who did not use digital keys,” Stokes said.

Chad Spensky, CEO of Allthenticate, which develops smartphone access capability and credential management, compares the plastic key card to passwords, which cybersecurity specialists view as low-tech and dated.

“We all still use passwords, despite the glaring security holes and clunky user experience. In the same way, key cards are likely here to stay,” Spensky said.  

He says the real promise of digital cards is less about security and more about convenience.

“While the card implementations are no more secure than their plastic counterparts, their user experience is far superior,” Spensky said. If given a choice between shuffling around a bunch of plastic cards or having your smartphone, “the phone is a clear winner.”    

 The consumer convenience factor is pushing hotel chains forward in their quest for digital keys. While digital keys offer an additional attack surface, they also allow for quick course correction.

One of the biggest problems with keycards, Spensky says, is that when a vulnerability is discovered there is no easy way to patch the vulnerability, “With smartphones  patches can be pushed out almost instantly over the air,” he said.

Don’t count out the plastic key card yet

Mehmet Erdem, professor, and chair of the department of resort, gaming, and golf management at the University of Las Vegas’s William F. Harrah College of Hospitality, warns that no system is foolproof and that people shouldn’t let digital entry give them a false sense of security.

“Everything can be hacked, everything can be breached,” Erdem said. “If someone has the intention to hack, it will happen.”

Erdem says not to count the plastic key card out yet. There are magnetic key cards that require a swipe and the newer radio frequency identification (RFID) cards that simply require proximity or can be loaded onto a phone. Erdem says RFID technology is improving, which makes plastic keys more versatile.

“RFID is not outdated,”  Erdem said, adding that it allows people who want less interaction to download the app, get the key, activate it, and go to the room.

“Because of sustainability and cost, hotels will push for mobile app,” Erdem said, but he added that some people will always prefer the physical plastic key. The advantage of the digital version of a plastic key, he said, comes down to human nature. “People forget their wallets, people forget their ID, but they don’t forget their phone.”

But in Las Vegas, where people routinely head to their hotel rooms flush with winnings from the blackjack tables and slots, there is an old-fashioned, low-tech option that makes the door discussion moot.

“There’s always the safe in the room, the guests should use that if they have something very valuable,” Erdem said.

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Tesla’s stock erases loss for the year, soaring 85% from April low

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Tesla's stock erases loss for the year, soaring 85% from April low

Tesla CEO Elon Musk attends the Saudi-U.S. Investment Forum, in Riyadh, Saudi Arabia, May 13, 2025.

Hamad I Mohammed | Reuters

Tesla’s shares have finally turned positive for the year.

After a dismal first quarter, which was the worst for the stock in any period since 2022, and a brutal start to April, following President Donald Trump’s announcement of sweeping new tariffs, Wall Street has again rallied around the electric vehicle maker.

The stock rose 3.6% on Monday to $410.26, topping its closing price of 2024 by over $6. It’s up 85% since bottoming for the year at $221.86 on April 4. A new filing revealed that CEO Elon Musk purchased about $1 billion worth of shares in the company through his family foundation.

It’s the second straight year Tesla has bounced back after a down first quarter. Last year, the shares fell 29% in the first three months before ending up 63% for 2024.

In recent weeks, analysts have praised the EV maker’s proposed pay plan for Musk, which could amount to a $1 trillion windfall for the world’s richest person over the next decade. The company has also gotten a boost from its new MegaBlocks battery energy storage systems that Tesla ships preassembled to businesses looking to lower their power costs or make greater use of electricity from renewable resources.

Even with the rebound, Tesla is the second-worst performer this year among tech’s megacaps, ahead of only Apple, which is down about 5% in 2025. Tesla is still in the midst of a multi-quarter sales slump due to an aging lineup of EVs and increased competition from lower-cost competitors in China, namely BYD.

Tesla has seen a consumer backlash, in part because of Musk’s political activities, including spending nearly $300 million to propel President Trump back to the White House and his work with the Trump administration to slash the federal workforce.

Tesla leadership has been working to shift investors’ attention to other topics such as robotaxis and humanoid robots.

However, the company has yet to deliver vehicles that are safe to use without a human onboard and ready to take control if needed. And while Musk is touting Tesla’s Optimus robots, which he says will be able to do everything from factory work to babysitting, a product is still a long way from hitting the market.

WATCH: Musk’s share purchase

Elon Musk's Tesla stock purchase is a great vote of confidence, says Sand Hill's Brenda Vingiello

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Alphabet becomes fourth company to reach $3 trillion market cap

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Alphabet becomes fourth company to reach  trillion market cap

Google CEO Sundar Pichai gestures to the crowd during Google’s annual I/O developers conference in Mountain View, California on May 20, 2025.

Camille Cohen | Afp | Getty Images

Alphabet has joined the $3 trillion club.

Shares of the search giant jumped more than 4% on Monday, pushing the company into territory occupied only by Nvidia, Microsoft and Apple.

The stock got a big lift in early September from an antitrust ruling by a judge, whose penalties came in lighter than shareholders feared. The U.S. Department of Justice wanted Google to be forced to divest its Chrome browser, and last year a district court ruled that the company held an illegal monopoly in search and related advertising.

But Judge Amit Mehta decided against the most severe consequences proposed by the DOJ, which sent shares soaring to a record. After the big rally, President Donald Trump congratulated the company and called it “a very good day.”

Read more CNBC tech news

Alphabet shares are now up more than 30% this year, compared to the 15% gain for the Nasdaq.

The $3 trillion milestone comes roughly 20 years after Google’s IPO and a little more than 10 years after the creation of Alphabet as a holding company, with Google its prime subsidiary.

CEO Sundar Pichai was named CEO of Alphabet in 2019, replacing co-founder Larry Page. Pichai’s latest challenge has been the surge of new competition due to the rise of artificial intelligence, which the company has had to manage through while also fending off an aggressive set of regulators in the U.S. and Europe.

The rise of Perplexity and OpenAI ended up helping Google land the recent favorable antitrust ruling. The company’s hopes of becoming a major AI player largely ride with Gemini, Google’s flagship suite of AI models.

WATCH: EU fines Google almost $3 billion

EU fines Google almost $3 billion over AdTech practices, reports say

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Bessent: TikTok deal ‘framework’ reached with China, Trump and Xi will finalize it Friday

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Bessent: TikTok deal 'framework' reached with China, Trump and Xi will finalize it Friday

Samuel Boivin | Nurphoto | Getty Images

The U.S. and China have reached a ‘framework’ deal for social media platform TikTok, Treasury Secretary Scott Bessent said Monday.

“It’s between two private parties, but the commercial terms have been agreed upon,” he said from U.S.-China talks in Madrid.

Both President Donald Trump and Chinese President Xi Jinping will meet Friday to discuss the terms. Trump also said in a Truth Social post Monday that a deal was reached “on a ‘certain’ company that young people in our Country very much wanted to save.”

Bessent indicated that the framework could pivot the platform to U.S.-controlled ownership.

TikTok did not immediately respond to a request for comment.

The comments came during the latest round of trade discussions between the U.S. and China. Relations have soured between the two countries in recent months from Trump’s tariffs and other trade restrictions.

At the same time, TikTok parent company ByteDance faces a Sept. 17 deadline to divest the platform’s U.S. business or face being shut down in the country.

U.S. Trade Representative Jamieson Greer said Monday that the deadline may need to be pushed back to get the deal signed, but there won’t be ongoing extensions.

Read more CNBC tech news

Congress passed a law last year prohibiting app store operators like Apple and Google from distributing TikTok in the U.S. due to its “foreign adversary-controlled application” status.

But Trump postponed the shutdown in January, signing an executive order in January that gave ByteDance 75 more days to make a deal. Further extensions came by way of executive orders in April and in June.

Commerce Secretary Howard Lutnick said in July that TikTok would shutter for Americans if China doesn’t give the U.S. more autonomy over the popular short-form video app.

As for who controls the platform, Trump told Fox News in June that he had a group of “very wealthy people” ready to buy the app and could reveal their identities in two weeks. The reveal never came.

He has previously said he’d be open to Oracle Chairman Larry Ellison or Tesla CEO Elon Musk buying TikTok in the U.S. Artificial intelligence startup Perplexity has submitted a bid for an acquisition, as has businessman Frank McCourt’s Project Liberty internet advocacy group, CNBC reported in January.

Trump told CNBC in an interview last year that he believed the platform was a national security threat, although the White House started a TikTok account in August.

White House launches TikTok account

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