Performance Divide in U.S. Hotels: Luxury Establishments Prosper as Budget Brands Decline

Economic conditions in the US are impacting consumers in different ways across income levels. This is being reflected in the hotel industry with luxury hotels in the US seeing high growth in demand and room rates, while cheaper, economy hotels are in decline. This breaks with broad historical trends. Industry expert, Jan Freitag, explains this as a divide by hotel class, with high-end travellers and consequently high-end hotels experiencing robust growth. However, this is not being mirrored at the lower end of the market.

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