Hotel owners and operators across the U.S. are scaling back or shelving investment plans amid rising costs and uneven demand, according to a new survey from the American Hotel & Lodging Association (AHLA).
Conducted in late August with input from 387 property owners and operators nationwide, the survey found that 32 percent of respondents have delayed development or renovation projects, 24 percent have scaled back, and 8 percent have canceled plans entirely. Only 8 percent reported moving forward with new investments.
Workforce challenges also remain acute, with nearly half of respondents (49 percent) saying their properties are currently understaffed, adding to financial pressures and operational uncertainty.
On the demand side, hoteliers are reporting signs of weakness across key travel segments. Thirty percent of respondents said completed leisure stays have declined year-over-year, while 26 percent reported drops in upcoming bookings. Business, group, and government travel have also softened, with 15 to 17 percent of properties seeing decreases.
“Hotels are eager to invest in their properties and communities, but rising costs and uncertain demand are forcing many to put projects on hold,” AHLA President & CEO Rosanna Maietta said in a statement. “It’s been a tough year for hotel operators, especially our small business owners. As Congress gets back to work, we’ll be focused on advancing policies to spur travel and ease operational pressures, and provide our industry the certainty it needs to grow, create jobs, and strengthen local economies nationwide.”
The survey results highlight the pressures facing the hotel sector as it continues to navigate shifting travel patterns, labor shortages and higher costs. AHLA said it will continue to advocate for policies aimed at supporting hoteliers and the broader travel economy.
For more information, visit www.ahla.com.
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