NATIONAL
REPORT — Rising costs and uneven demand challenges are placing a significant
strain on hotel investment and operations, according to a new survey conducted
by the American Hotel & Lodging Association (AHLA).
The survey,
conducted in late August, received input from nearly 400 hotel property owners
and operators nationwide.
Development
and renovation plans remain under pressure, with 32% of respondents delaying
projects, 24% scaling back and 8% canceling entirely. Only 8% of property
owners and operators reported moving forward with new investments. Nearly half
of the respondents (49%) also reported being understaffed, underscoring ongoing
workforce challenges that add to financial uncertainty.
On the
demand side, respondents report that leisure travel continues to soften, with
30% of hotels seeing declines in completed leisure stays and 26% reporting
drops in upcoming bookings compared to the same period last year. Business,
group and government travel also showed softness, with 15–17% of properties
reporting decreases.
“Hotels are
eager to invest in their properties and communities, but rising costs and
uncertain demand are forcing many to put projects on hold,” said AHLA President and CEO Rosanna Maietta. “It’s been a tough year for hotel
operators, especially our small business owners. As Congress gets back to work,
we’ll be focused on advancing policies to spur travel and ease operational
pressures, and provide our industry the certainty it needs to grow, create
jobs, and strengthen local economies nationwide.”