Major hotel operators are feeling the strain of consumer-level economic anxiety paired with a decrease in international tourism as a government-mandated reduction in air traffic comes for the country’s largest airports.
Midtier chains patronized by a broad swath of the American middle class are seeing flat or declining revenue per available room, adding pressure as distressed loans mount and development slows.
“Everything is softer except the very high end. Government travel is softer, international inbound is softer, there’s a little bit of business hesitancy, and a broader consumer who is much more price-aware,” Baird senior research analyst Michael Bellisario said. “The middle of…