Trump’s travel ban is hurting hotels: Marriott CEO

Miami /
Apr.April 12, 2017 09:45 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 and Miami hotel markets, which are already struggling to cope with oversupply of new hotels, a rising dollar and competition from Airbnb. South Florida’s hotels are also facing the impact of the Zika virus.

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


Related Articles

arrow_forward_ios
David Grutman and Pharrell’s Goodtime Hotel had received nearly 30 noise violations (Carma Connected, Getty)
Too much of a good time? David Grutman and Pharrell’s Goodtime Hotel could lose entertainment permit
Too much of a good time? David Grutman and Pharrell’s Goodtime Hotel could lose entertainment permit
Related Companies Chairman Stephen Ross with One Flagler (Related, Getty)
Prayers answered? Related Companies closes on church site for planned office tower in downtown West Palm
Prayers answered? Related Companies closes on church site for planned office tower in downtown West Palm
Grover Corlew principal Mark Corlew with Bank of America Tower in Boca Raton (Grover Corlew)
Grover Corlew buys Bank of America Tower in Boca Raton for $45M
Grover Corlew buys Bank of America Tower in Boca Raton for $45M
Opterra Capital buys Holiday Inn & Suites Boca Raton for $13M
Opterra Capital buys Holiday Inn & Suites Boca Raton for $13M
Opterra Capital buys Holiday Inn & Suites Boca Raton for $13M
The partially collapsed 12-story Champlain Towers South condo building (Getty)
Inside the tug-of-war over the Surfside condo site’s future
Inside the tug-of-war over the Surfside condo site’s future
Rendering of the proposed Bulgari Hotel (Bulgari)
Setai Miami Beach owners and condo association sue city over Bulgari hotel height increase
Setai Miami Beach owners and condo association sue city over Bulgari hotel height increase
Louis Puig and 333 Jefferson Avenue in South-of-Fifth (Google Maps)
Former Club Space owner buys South Beach apartments for short-term rentals
Former Club Space owner buys South Beach apartments for short-term rentals
Nadim Ashi of Fort Partners with the hotel (Four Seasons, Fort)
Fort Partners buys Four Seasons Brickell hotel for $130M
Fort Partners buys Four Seasons Brickell hotel for $130M
arrow_forward_ios

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

Loading...