Leisure travel was the first to recover from coronavirus lockdowns, surging well above 2019 levels as cooped-up consumers rushed to spread their wings and fly literally anywhere else.
Now, though, leisure travel is normalizing, corporate and group travel have yet to catch up to prepandemic levels and demand in the U.S. hotel market is cooling faster than some expected.
Inflation, lack of inbound international travel and evolving work habits are taking a toll on hotel room demand, insiders say. And the slowdown is showing up in third-quarter earnings results and hotel market growth projections, which could impact how hotel brands and owners operate going forward.
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