Americans are traveling less amid sticky inflation, swirling tariffs and a weakening job market. But for the country’s elite, a little economic bumpiness is no reason to cancel a vacation.The persistent gap in performance between top-tier hotels and the rest of the sector is becoming a chasm, driven by the growing divergence in consumer habits. The widening is expected to continue, and it could eventually drive investment dollars to the luxury space when interest rates come down.
"We`re just seeing more of this bifurcation. The rich are getting richer, the poor are getting poorer and the middle class is getting squeezed out,” said Daniel Lesser, CEO of New York-based LW Hospitality Advisors. “People with means continue to travel in earnest, and those who are challenged are holding back.”
The top end of the hotel market is the only segment to post gains in 2025, while the rest of the sector has posted declining average daily rates and revenue per available room...
RSK: Lower and mid-tier hotels are feeling the pinch, but they are not going away. Wonder how the Wisconsin Dells area is doing....for some reason I feel fine.
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- - Volume: 25 - WEEK: 37 Date: 9/9/2025 1:51:15 PM -