Trump’s travel ban is hurting hotels: Marriott CEO

Los Angeles /
Apr.April 12, 2017 09:30 AM

From TRD New York: Donald Trump’s travel ban is hurting the hotel industry, according to Marriott International CEO Arne Sorenson.

The ban, which predominantly affects Muslims, is “not good, period,” Sorenson said at a company gathering in Dubai. He claimed that bookings from the Middle East and North Africa were down up to 30 percent in February.

Travelers from those regions tend to spend disproportionately higher on hotel bills, the New York Post reports, so their absence hurts hospitality firms’ bottom line.

“In a banner year, business from these guests at (The Lotte New York Palace hotel) contribute up to 10 percent of annual room revenues — or about $12 million,” David Chase, former GM of the Palace, told the Post. “They travel in groups of 20 to 80 and they will take entire floors at the hotel for months at a time.”

Cynthia Chung of travel arrangement firm Luxury Attache International added that “many families in the Middle East recruit personnel from (those banned) countries and these are the royal households that might refuse to travel to the US.”

The slowdown in travel from predominantly-Muslim countries comes at a bad time for the New York hotel industry, which is already struggling to cope with oversupply of new hotels, a rising dollar and competition from Airbnb.

Meanwhile, Trump’s travel ban is also having a chilling effect on the condo market.  [NYP]Konrad Putzier 


Related Articles

arrow_forward_ios
Granite CEO Michael Dardick and Industrious CEO Jamie Hodari

Industrious partners with landlords to offer tenants satellite workplaces

Industrious partners with landlords to offer tenants satellite workplaces
Colorado Campus at 2041-2115 Colorado Avenue and Northwestern Mutual CEO John E. Schlifske

Northwestern Mutual picks up Santa Monica office campus for $166M

Northwestern Mutual picks up Santa Monica office campus for $166M
Prop 15 property tax measure draws millions (Credit: iStock)

Prop 15 property tax measure draws millions of dollars from for and against campaigns

Prop 15 property tax measure draws millions of dollars from for and against campaigns
California is allowing barbershops and salons to reopen under new coronavirus mitigation guidelines (Credit: Noam Galai/Getty Images)

California allows barbershops to reopen, but LA holds back

California allows barbershops to reopen, but LA holds back
LA County assessor Jeffrey Prang

LA County properties valued at nearly $2 trillion…before pandemic

LA County properties valued at nearly $2 trillion…before pandemic
Justin Myers, Vice President of Atlas Hospitality

Study: California hotel construction outlook is bleak

Study: California hotel construction outlook is bleak
Los Angeles apartments (Credit: iStock)

Expanded unemployment has kept California renters afloat. But that’s set to expire

Expanded unemployment has kept California renters afloat. But that’s set to expire
A rendering of Times Mirror Square

Onni Group’s Times Mirror Square project clears major hurdle

Onni Group’s Times Mirror Square project clears major hurdle
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...