Luxury, Credit Cards, Deals: What We’re Watching in Hotel Earnings

Government travel headwinds and tariff uncertainties may be temporary. Luxury resilience and growing credit card fees may be enduring.

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Many analysts believe the major hotel groups are positioned to report steady, if unspectacular, growth in the second quarter, thanks to enjoying more tailwinds than headwinds.

In April, Hilton CEO Chris Nassetta predicted that travel demand would stabilize after the passage of President Trump's tax and budget bill and summer negotiations over tariffs. In May, Marriott issued upbeat guidance for the year and assumed no U.S. recession would emerge.

Second-quarter results will show whether that optimism reflected confidence or wishful thinking. Earlier this year, revenue per available room (RevPAR) had been recovering but remained below 2019 peaks in several key markets and segments.

Reports we'll be tracking this week: Hilton (Wednesday) and Wyndham (Thursday). Marriott, Hyatt, IHG, Choice, Accor, and others will roll out in the coming weeks.