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hilton has reported low occupancy hotel This year the US In form of Travel Recession – Americans are hesitant to spend, and foreigners are looking to move elsewhere.
The hotel giant cut its forecast for 2025 rooms revenue growth, suggesting that the current weak demand for vacations within the US is likely to continue.
Travel slowed for Americans this year as many families struggle with the impact of President Donald Trump’s tariffs, rising inflation and an overall higher cost of living.
The cost of travel has increased by 20 percent since 2019, as prices for vacation essentials like gas, hotels, food and entertainment continue to rise. According to data from the US Travel Association.
The number of international travelers entering the US has also declined. This year, the number of people coming from abroad, except Mexico and Canada, fell by 3 millionexperts are blaming trumpTariffs and aggressive immigration policies.
Geopolitical tensions and political uncertainty are also playing a role. Since returning to the White House, Trump has doubled down on policies, including harsh Reviving travel ban Mainly targeting African and Middle Eastern countries, tightening visa approval rules, etc. Increasing large-scale immigration raids,
As a result, some Countries have issued travel advisoriesCautioning citizens that a visa or entry waiver does not guarantee entry into the US. Many countries have also warned LGBTQ+ citizens that the US could deny entry if the passport contains a gender marker different than the sex assigned at birth.
Trump has also done it Imposed tariffs on almost every country including alliesThe levy, which is typically passed on to the consumer, has led to an increase in the cost of everyday necessities as well as larger items such as cars and electronics.
Despite concerns that it is playing a role in reducing demand for hotel rooms, Hilton is still informed Profit and revenue growth for the third quarter.
While the hotel chain’s revenue per available room (RevPAR) – a key metric in the hospitality industry – fell 2.3 percent, net profit rose to $420 million from $344 million last year.
The hotel operator saw a decline in the business of medium and budget hotels. But luxury properties were booming, indicating wealthy travelers are continuing to spend while average Americans have curbed spending amid economic uncertainty.
Higher spending at Hilton’s luxury properties helped drive the company’s total revenue above expectations. Hilton CEO Christopher Nassetta said in July that he expected demand to pick up in the fourth quarter in the U.S., which accounts for about 65 percent of Hilton’s total rooms.
The company also expects its full-year revenue per available room to grow by 1 percent, down from its earlier forecast of 2 percent growth.
Hilton isn’t the only hotel chain affected by weak vacation demand in the US
In August Marriott, the largest hotel chain in the US and globally, cut its full-year forecasts for revenue growth and profit, blaming “increased macro-economic uncertainty” due to trade policy changes. While Marriott’s low-cost hotels business declined, its luxury brands also saw room revenue growth in the US and Canada.
Research firms Costar and Tourism Economics also lowered their US hotel growth forecasts for 2025 and 2026 due to “continued underperformance” and “increased macroeconomic concerns.”
“The slowing US economy should absorb the impacts of the tariffs without falling into recession,” aran ryan saidDirector of Industry Studies in Tourism Economics. “The current environment – characterized by a slowdown in consumer spending, reduced business capital expenditure and a decline in international visitation – will transition to a modestly supportive environment driven by tax cuts and less policy uncertainty as we look into 2026.”
With reporting from Reuters.