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Hotel Industry Leaders Present Rocky But Optimistic Outlook For Rest Of 2025


  • Business section of a newspaper

    Earning Calls: Hotel Industry Leaders Present Rocky But Optimistic Outlook For Rest Of 2025 – Image Credit Unsplash   

  • Hotel executives anticipate a challenging third quarter but expect improvements by year-end, driven by holiday shifts and major events.
  • International markets and luxury segments are poised for stronger performance compared to the U.S. and Canada.

After a turbulent second quarter, leaders in the hotel and travel industry are cautiously optimistic about the remainder of 2025, despite facing ongoing challenges. During recent earnings calls, executives from major hotel groups such as Marriott, Hilton, and Hyatt outlined their expectations amid economic uncertainties, corporate hesitancy, and government pullbacks impacting overall demand.

Leeny Oberg, CFO of Marriott International, highlighted that global revenue per available room (RevPAR) is expected to remain flat or increase slightly in the third quarter, with a more significant uptick anticipated by the end of the year. Factors such as the Paris Olympics and the Euro Cup in 2024 are expected to drive international demand, particularly in the luxury and full-service segments.

Hilton’s CEO, Chris Nassetta, echoed this sentiment, noting a modest increase in demand and improved trends in the fourth quarter. He emphasized the potential for stronger RevPAR growth in the coming years, supported by limited industry supply growth and favorable economic conditions.

Hyatt’s CFO, Joan Bottarini, pointed out that while lower chain scales in the U.S. underperformed, international markets, especially in Asia Pacific, are expected to see the strongest RevPAR growth. The company anticipates a return to positive growth in the fourth quarter, driven by group and business transient bookings.

Despite the challenges, industry leaders remain optimistic about 2026, citing factors such as limited hotel supply growth and significant infrastructure investments as catalysts for future demand. As the year progresses, the hotel industry is poised to navigate through its current hurdles, with hopes for a brighter outlook on the horizon.

Discover more at CoStar.

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  • Business section of a newspaper

    Earning Calls: Hotel Industry Leaders Present Rocky But Optimistic Outlook For Rest Of 2025 – Image Credit Unsplash   

  • Hotel executives anticipate a challenging third quarter but expect improvements by year-end, driven by holiday shifts and major events.
  • International markets and luxury segments are poised for stronger performance compared to the U.S. and Canada.

After a turbulent second quarter, leaders in the hotel and travel industry are cautiously optimistic about the remainder of 2025, despite facing ongoing challenges. During recent earnings calls, executives from major hotel groups such as Marriott, Hilton, and Hyatt outlined their expectations amid economic uncertainties, corporate hesitancy, and government pullbacks impacting overall demand.

Leeny Oberg, CFO of Marriott International, highlighted that global revenue per available room (RevPAR) is expected to remain flat or increase slightly in the third quarter, with a more significant uptick anticipated by the end of the year. Factors such as the Paris Olympics and the Euro Cup in 2024 are expected to drive international demand, particularly in the luxury and full-service segments.

Hilton’s CEO, Chris Nassetta, echoed this sentiment, noting a modest increase in demand and improved trends in the fourth quarter. He emphasized the potential for stronger RevPAR growth in the coming years, supported by limited industry supply growth and favorable economic conditions.

Hyatt’s CFO, Joan Bottarini, pointed out that while lower chain scales in the U.S. underperformed, international markets, especially in Asia Pacific, are expected to see the strongest RevPAR growth. The company anticipates a return to positive growth in the fourth quarter, driven by group and business transient bookings.

Despite the challenges, industry leaders remain optimistic about 2026, citing factors such as limited hotel supply growth and significant infrastructure investments as catalysts for future demand. As the year progresses, the hotel industry is poised to navigate through its current hurdles, with hopes for a brighter outlook on the horizon.

Discover more at CoStar.

Source link

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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution

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