CEOs at NYU focus on marketplace resilience

NEW YORK CITY – While the audience and CEOs on stage were briefly jarred by a boisterous protest about the use of eggs from caged chickens as well as shouts of "free Palestine" at the NYU investment conference inside the Marriott Marquis ballroom in New York City, the show went on with the six, all-male leaders initially advocating increased funding and support for Brand USA to promote international travel to the U.S.

Geoff Ballotti from Wyndham Hotels & Resorts, Sebastien Bazin from Accor, Tony Capuano from Marriott International, Mark Hoplamazian from Hyatt Hotels Corp. and Chris Nassetta from Hilton said they are monitoring and adjusting business strategies to adapt to evolving consumer preferences and market conditions.

They all admitted that the uncertainty created by the Trump administration's first 100 days has led to consumer caution and is starting to impact business travel. But at the end of the day, while booking windows are again narrowing, demand is recovering closer to travel dates. Group and high-end leisure continue to be strengths with the middle tiers showing weakness.

(left to right): Mark Hoplamazian, Hyatt; Elie Maalouf, IHG and Chris Nassetta, Hilton

Longer-term, the arrow continues to point up and to the right with Hoplamazian explaining that there has been a shift in travel from being considered a discretionary item to a basic human need. To a man on stage, the message is the business remains resilient and the emergence of the middle class and the ongoing transfer of wealth bodes well for the middle market up to luxury.

As for bringing back international travelers to the U.S., Nassetta said there is not a lot of oxygen in Washington, D.C., to focus on the travel and tourism deficit the U.S. faces. He suggested that by summer or fall, when trade deals and the budget debate should be concluded, there will be a big pivot to economic growth, including travel and tourism.

When discussing growth opportunities, India and the Middle East were the consensus opportunity markets, and there was little discussion about further development here in the U.S. It’s not that the brands on stage don’t have pipelines, especially with their fledgling midscale and extended-stay brands, but they were mostly bullish about those specific international opportunities.

As for China, the panel believed real estate leverage challenges will be worked out over time and growth opportunities remain, highlighting the importance of maintaining and growing their presence in this market.

Throughout the opening day of the conference, the tone related to dealmaking and development remained reserved with macro uncertainty continuing to cause investment pauses. However, there was consensus that once tariff and budget challenges gain clarity, traction for growth and transactions should increase.

Of course, there was the now-obligatory discussion about how artificial intelligence is affecting business models with the panel saying the role of AI is as a partner rather than a replacement, creating opportunities to focus on enhancing human connections by increasing capacity for employees to engage more with guests.