Hotel Groups Rebalance Portfolios to Shift Upmarket for Pricing Power
Skift Take
Inflation? What inflation? Pricing power and a shift upmarket are putting global hotel groups in a strong position long-term.
Early Check-In
Editor’s Note: Skift Senior Hospitality Editor Sean O’Neill brings readers exclusive reporting and insights into hotel deals and development, and how those trends are making an impact across the travel industry.Last fall, bearish commentators had worried that inflationary pressures would lead to rising costs and weakened demand, softening hotel group performance by now. None of that has materialized yet, as underscored by hotel group performance in the first quarter.
From when inflation spiked in 2022 and the first quarter of 2023, the U.S. hotel industry's average daily rate outpaced inflation comfortably.
In the first quarter, average daily rate growth in the U.S. exceeded inflation growth by 4.3 percentage points, said JLL’s Americas Hotels Research team. Robust leisure
