Hilton says demand for hotel rooms in America has dropped as U.S. travel slows this year linked to Trump tariffs and immigration fears
The hotels seeing big drop in reservations as cost of travel soars
- Hilton has reported fewer hotel room occupancies this year as travel for Americans has slowed, leading the company to cut its 2025 room revenue growth forecast.
- The slowdown in US travel is attributed to households struggling with tariffs imposed by President Donald Trump, rising inflation, and the overall high cost of living, with travel costs increasing by 20% since 2019.
- International visitor numbers to the US have also declined by 3 million, excluding Mexico and Canada, due to Trump's tariffs, aggressive immigration policies, and geopolitical tensions.
- Despite lower occupancy rates in its mid-scale and budget hotels, Hilton's overall profit increased to $420 million, driven by strong performance in its luxury properties, indicating continued spending by wealthier travelers.
- Other major hotel chains like Marriott and research firms have also downgraded their US hotel growth forecasts for 2025 and 2026, citing macroeconomic uncertainty and trade policy changes.