Your summer vacation this year might be a little more expensive than last year. Last week, leaders from major US hotel chains Marriott (MAR, $159.87), Hilton (HLT,$127.45), and Hyatt (H,$84.77) went on the record to say that the combination of inflation, vaccination rates, and loosening COVID-19 restrictions will lead to a big increase in hotel prices.
Hilton CEO Chris Nassetta predicted his hotel chain will "have the biggest summer we've ever seen in our 103-year history this summer." Marriott CEO Tony Capuano said that over Memorial Day weekend, his company’s revenue per available room (which is used as a common measurement for hotel performance) was 25% compared to 2019.
After the Biden administration decided to repeal the COVID-19 testing requirement for foreign travelers, Hyatt CEO Mark Hoplamazian said that since foreign travelers “spend a lot more than domestic travelers”, he foresees a big increase in revenue for the entire US travel industry.
Why it matters
No other industry was hit harder from the COVID-19 pandemic than the hotel and travel industry. However, hotel and travel stocks are now making a steady comeback thanks to pent-up demand and loosening travel restriction across the world.
