Hotels Stick to Upbeat Forecasts Even With Concerns Over Cooling Demand
Photo Caption: The Ritz-Carlton New York, NoMad, opened in July 2022. Source: Ritz-Carlton.
Skift Take
They say smart people can hold two opposing ideas in their minds and still function. So hotel executives must be geniuses, as they watch bookings stay strong while economic worries rise.
The post-pandemic boom in travel pushed hotel rates to record highs in recent months. Yet rising interest rates and energy costs could endanger the recovery.
So far, the CEOs of major hotel groups have been forecasting a sustained boom for their businesses for the rest of this year. But their comments come as warning lights flash on economic dashboards in the U.S, Europe, and elsewhere.
At Hyatt, executives said they had seen no slowdown in bookings at the all-inclusive resorts at the recently acquired Apple Leisure Group. Resorts tend to be reserved in advance, and Hyatt said about a quarter of its all-inclusive business for the early months of 2023 is already on the books.
This upbeat news fits with a broader industry pattern. The U.S. hotel industry reported record-high monthly room rates in July on a nominal basis, according to market intelligence firm STR.
The rest of the Hyatt portfolio depends more on business demand, which remains depressed compared with pre-pandemic levels. Yet executives are upbeat. While demand remains below pre-pandemic levels, Hyatt and other
