Watch as Gaming, Lodging and Leisure analyst Todd Jordan compares the outlook for business and leisure travel within a #Quad4 setting, while noting on ESG policy risks and other business travel risks facing the unstable hotel industry.
“It’s really about the rate of change relative to expectations,” notes Jordan. “If you look at the Street and what investors seem to be forecasting for RevPar growth, if you look at 2023 people are way too aggressive and it’s all driven by expectations of business travel coming back to normal. We just don’t see it, there’s way too many hurdles.”
“This ESG thing is just another nail in the coffin for business travel, and management teams are doing a disservice to the investors because they are setting expectations high. They say this every quarter ‘oh business travel is coming back,’ well yeah, it has to come back, but are you going to get to levels that move the needle more than leisure? That’s a bad mix for most of the hotel complex.”
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