Several CEOs from US hotel companies report group demand, specifically corporate group demand, appears to be on its way back.
Marriott International President and CEO Arne Sorenson said during his company’s first-quarter earnings call that recent group trends are encouraging. While the company had expected lower group business during Q1, group revenue per available room came in flat compared to the previous year, he said, due to better-than-expected attendance at meetings and stronger group business.
Patrick Grismer, CFO at Hyatt Hotels Corporation, said during his company’s call that Hyatt is well-positioned on group business for the year. “As we look ahead, pace for all years is up with now 53% of our targeted 2019 U.S. group business already on the books at the end of the quarter,” he said.
While this sounds like great news for the U.S. hotel industry, the common adage that hotels are a street-corner business remains true, in that what’s up for one hotel or market might not be for another.
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