U.S. Hotels Pull Back on Rising Room Rates as Inflation Hits 4-Decade High
Photo Caption: A child-friendly room at the W Marriott Orlando Bonnet Creek Resort & Spa in Orlando, Florida. Source: Marriott International.
Skift Take
Hotels in the U.S. may be hitting the peak of their pricing power. Owners and managers need to make sure that spiking costs for labor, construction, and supplies don't erode their financial recovery from the pandemic's depths.
Soaring hotel room rates are continuing to contribute to a spike in the U.S. cost of living, but the pace of price hikes is slowing.
Hotel rates rose 1 percent in May from April, a slower pace than the 2 percent jump between March and April and the 3.7 percent jump between February and March. The U.S. Bureau of Labor Statistics reported the seasonally adjusted percentage changes on Friday.
The backdrop remains broadly inflationary. The hotel sector has seen historic price
