Sonesta CEO: Bookings Are 'Still Strong' as it Aims to Sell 114 Hotels

Sonesta International Hotels, the eighth-largest hotel group in the U.S. by number of units, is orchestrating the sale of 114 properties in a pivot to a franchise model.

CEO John Murray doesn't anticipate problems selling the hotels despite recent economic uncertainty for two reasons: Buyers' inquiries have been plentiful and reservation demand is "still strong."

Skift asked Murray if Sonesta had seen any weakness in demand, given that U.S. consumer confidence dropped sharply in February.

"Booking signals are mixed, but Sonesta hasn't changed its internal outlook or plans despite uncertainty in the market," Murray said. "Things are still strong."

Sonesta continues to see strength in its East Coast gateway markets, such as New York City.

The booking pace in March "isn't reversing." Sonesta remains confident with strong and growing group bookings, a continued good pace in business transient bookings, and steady or growing leisure demand.

Sonesta is privately held and doesn't report quarterly earnings. But Murray expected "improvement" in year-over-year metrics in the quarter. That's despite the Easter holiday moving to the second quarter, which will make year-over-year comparisons more challenging.

"We are watching government travel spending closely, and thus far, government spending is down, especially in markets with lots of government and military travel spending," Murray said.

Yet there are also upsides to watch for.

"A silver lining to tariff wars may be a return of strong leisure travel by Americans within the U.S. to avoid foreign markets with growing anti-American sentiment," Murray said.

International inbound travel hasn't had a tariff pullback yet, either.

"The limited international travel reductions in 2025 that we have seen seem to reflect the strong U.S. dollar more than politics or tari