Major hotel companies have reported mixed expectations about travel spending. This reveals the uneven impact that economic uncertainty has on different customer segments.
Truist analysts wrote on Monday that “what most stood out for us was the large difference in expectations from bullish to extremely cautious” from the previous earnings season.
IHG, Accor, Wyndham and Marriott all lowered their forecasts.
The difference was based on income. Luxury hotels did well, but mid-tier hotels catering to middle-class clients saw softening. Marriott, Hilton and Hyatt all saw a strong performance in their high-end resorts, but a relative weakness in their limited-service properties.
The reports were published before U.S. President Donald Trump and Chinese Premier Li Keqiang agreed to further trade talks Monday. We’ve highlighted what we thought was important.
1. “Not Assuming A Recession”
Anthony Capuano said, “We are not assuming that there will be a recession.” The comment, which reflects the view of Marriott, the world’s biggest hotel operator, is in line with the views expressed by other CEOs.
Many analysts wondered, as earnings season began, if Americans were delaying travel expenditures. Bank of America credit data revealed that over
