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FROM GLOBAL TO LOCAL, U. S. LODGING INDUSTRY FORCED TO ADJUST.
Contributed by NANCY DAWN, EVP, VALUATION & ADVISORY, NEWMARK
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T he hospitality sector has undergone a dramatic transformation over the past several years due to rising interest rates, declining discretionary income, impacts from the pandemic and changing work-from-home( WFH) trends. While early expectations projected a full recovery across all travel segments, the reality has been more nuanced. Leisure travel has remained remarkably
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resilient, whereas business travel— once a cornerstone of the hospitality industry— has struggled to regain its pre-pandemic momentum, especially in urban markets where WFH has become the norm. Now, new geopolitical and economic factors are poised to potentially impact lodging further, particularly in key leisure markets, while business travel continues to lag in many urban markets. |
LEISURE SHIFT During the height of the pandemic, travel restrictions and corporate policy shifts led to a significant decline in business travel. However, leisure travel, fueled by pentup demand with a continued desire to travel and a preference for open-air destinations, flourished. Popular leisure markets experienced strong demand and increased room rates, with ski resorts, coastal |
46 hotelsmag. com May / June 2025 |