Hotel Leaders Tout Resilient Travel Spend Even as Consumer Sentiment Hits Three‑Year Low

Hotel brand and lodging REIT executives struck an upbeat tone on recent earnings calls, pointing to steady booking trends, strong group and international demand, and pricing power. Their stance contrasts with a fresh slide in consumer sentiment to a three-year low, underscoring a widening gap between what travelers say they feel and how they actually spend.

By HNR News Staff Reporter

Optimism from hotel brands meets a darker consumer mood

Executives across the hotel sector projected continued strength in travel spending on recent earnings calls, despite consumer sentiment falling to a three-year low this month. Leaders at major brands and lodging-focused real estate investment trusts (REITs) cited resilient leisure demand, improving business travel and robust group bookings as reasons to keep a constructive outlook heading into the new year.

“We continue to see strong demand for travel across our system,” Hilton Worldwide CEO Chris Nassetta said on the company’s earnings call, adding that the brand’s pipeline and pricing momentum are supporting that view. Marriott International CEO Anthony Capuano struck a similar tone, saying, “Global demand for travel remains robust,” while highlighting steady international and group trends.

Bookings and rate hold firm despite macro headwinds

The upbeat commentary is rooted in metrics executives say remain healthy: resilient weekend occupancy, steady midweek business transient recovery in key markets, and group pace that is tracking ahead of historical norms in many urban centers. “Group demand remains strong,” Host Hotels & Resorts CEO Jim Risoleo noted, pointing to citywide calendars and corporate events that are bolstering visibility into next year.

Hyatt’s leadership has also emphasized the stickiness of higher-end travel. “We continue to see healthy demand from high-end travelers,” Hyatt CEO Mark Hoplamazian said, noting that premium leisure and lifestyle-oriented properties are sustaining rate. Apple Hospitality REIT pointed to stable leisure and an improving corporate mix in secondary markets. “Leisure demand remained healthy while business travel continued to improve,” Apple Hospitality CEO Justin Knight said.

Consumer sentiment slides, but wallets say otherwise

The latest drop in consumer sentiment, reported by the University of Michigan’s Surveys of Consumers, reflects mounting worries about prices and borrowing costs. That gloom is not yet translating into a broad pullback in travel, executives argue, with booking windows and cancellation patterns essentially unchanged.

Federal Reserve officials, for their part, continue to warn that price pressures remain elevated. “Inflation remains elevated,” the Federal Open Market Committee reiterated in a recent policy statement—language that underscores the pressure on household budgets and the risk to discretionary categories such as travel.

Why travel is holding up: shifts in priorities and mix

Several leaders said travel has become a protected line item for many households, even as they trade down in other categories. Extended weekends, shorter-haul trips, and loyalty-driven redemptions are helping consumers stretch budgets without abandoning travel. On the business side, hybrid work patterns have reconfigured demand into more evenly distributed midweek stays, while meetings and events continue to rebuild.

Nassetta said the company is still “not seeing cracks in demand” across core segments, with loyalty membership growth and direct booking penetration helping sustain occupancy and rates. Capuano emphasized the role of international travel, noting that cross-border trips, particularly to and within Europe and parts of Asia, remain a tailwind even as domestic consumers become more cautious.

REITs lean on group and urban recovery

Lodging REIT executives—who tend to have concentrated exposure to higher-cost, urban and group-heavy portfolios—were notably constructive on group pace. “We are optimistic about the continued recovery of group business,” Host’s Risoleo said, citing forward bookings into large convention markets. Park Hotels & Resorts’ leadership echoed that view, pointing to improvements in meeting planner activity and corporate event calendars.

These dynamics are crucial for cash flows: group bookings are typically locked in months in advance, providing visibility into pricing and occupancy. Several REITs also cited disciplined capital spending and asset sales that have simplified portfolios and improved margins, offering a buffer should transient demand soften.

Risks: rates, inflation and a ‘vibes-versus-spend’ gap

Even the bulls acknowledge risks. Persistently high interest rates can weigh on development pipelines and transactions, and sustained inflation erodes travelers’ purchasing power over time. A prolonged slump in consumer sentiment could eventually bleed into bookings—especially among price-sensitive leisure travelers—if labor markets weaken or student loan repayments and credit costs become more burdensome.

Analysts note a growing “vibes-versus-spend” divergence: consumers report feeling worse, yet travel receipts and room revenue per available room (RevPAR) have generally held steady. The sector’s leaders are betting that, for now, travel remains a priority experience that households are reluctant to cut.

What to watch next

– Booking windows and cancellation rates through the holiday and early spring shoulder season

– Group pace and citywide calendars for major convention markets

– International inbound trends, particularly from Asia, as airlift normalizes

– Rate integrity and mix shift between luxury, upscale and midscale segments

– Any inflection in loyalty program redemptions and direct booking share

For now, the industry’s message is clear. As Capuano put it, “Global demand for travel remains robust.” Whether that optimism holds if sentiment stays depressed will be the lodging sector’s central test in the coming quarters.