While domestic RevPAR was up for most major US hotel companies in the second quarter, it wasn’t quite as high as you might expect given the current economic indicators. The second quarter was also, generally, still weak in the areas of corporate and group travel.
Hilton CEO Christopher Nassetta described the corporate travel environment as “cautiously optimistic” and said he hoped there would be more activity in terms of tax reform to “help change the psychology with our corporate customers.”
He noted: “The impact of it would be positive in the sense of driving more free cash flow into people’s businesses, so they’d have more to play with to hire and invest.” Nasetta also noted that group business at his hotels was “weaker.”
Marriott CEO Arne Sorenson echoed similar sentiments, saying “companies…are being very cautious about travel and very cautious about managing expenses, and [there are] others which seem to be spending as if they’re having a great party.”
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