Leaders of some of the world’s largest hotel companies expressed confidence in the strength of global travel demand during the NYU International Hospitality Investment Forum in New York, even as geopolitical tensions in the Middle East continue to create uncertainty for the travel industry.
Executives from major hospitality brands including Hyatt, Accor, Hilton, and IHG Hotels & Resorts said travel demand remains resilient across many regions, although the ongoing conflict involving Iran and its potential impact on energy markets remains a concern. Industry leaders noted that rising fuel costs and disruptions to energy infrastructure could have longer-term effects on consumer spending and travel patterns.
During a panel discussion moderated by CNBC anchor Sara Eisen, Hyatt Hotels Corporation President and CEO Mark Hoplamazian highlighted concerns shared by energy industry leaders regarding the potential lasting consequences of damage to critical oil and natural gas infrastructure. According to Hoplamazian, even if peace is restored, rebuilding refineries and restoring liquefied natural gas production and distribution could take significant time, potentially leading to elevated energy prices that may affect travelers and businesses alike.
Despite those concerns, hotel executives emphasized that the global nature of their businesses allows them to adapt to shifting travel patterns. Accor CEO Sebastien Bazin acknowledged that the Middle East accounts for approximately 10% of the company’s revenue and that some travelers have altered their plans due to regional instability. However, he noted that many travelers who may choose not to visit destinations such as Dubai are instead redirecting their travel to other markets including Egypt and Morocco, helping offset losses.
IHG Hotels & Resorts CEO Elie Maalouf reported that the company’s Middle East business experienced a significant slowdown at the height of the conflict, with demand falling by roughly 50% in some areas. However, he said signs of recovery are already emerging as both business and leisure travelers gradually return to the region. Maalouf pointed to strong airline activity, ongoing investment, and government support as reasons for confidence in the region’s long-term recovery prospects.
Beyond international travel trends, executives also discussed the state of the U.S. economy and its impact on hotel demand. Hilton President and CEO Christopher Nassetta challenged the commonly cited “K-shaped economy” theory, which suggests that higher-income consumers continue to prosper while lower-income households struggle. Instead, Nassetta argued that a broader recovery is taking place across multiple income groups.
According to Hilton’s data, economy and midscale hotel segments are showing renewed strength alongside continued growth in upscale and luxury travel. Nassetta described this trend as a “C-shaped economy,” with the letter representing convergence as travel activity increases across a wider range of consumers.
He noted that travelers in economy and midscale segments are booking more trips for both leisure and business purposes, contributing to stronger occupancy levels and demand throughout the hotel industry. Weekend getaways, vacations, and work-related travel have all shown improvement, indicating growing confidence among middle-income consumers.
Nassetta attributed much of this recovery to large-scale economic activity occurring across the United States. Federal infrastructure projects, increased domestic manufacturing, and construction tied to artificial intelligence data centers and energy facilities are creating jobs and supporting travel demand in many regions. He emphasized that many of these projects are driven by middle-class workers whose spending and mobility are helping fuel growth in the hospitality sector.
While geopolitical risks and energy market volatility remain concerns, the overall message from hospitality leaders was one of cautious optimism. Strong global demand, improving business travel, resilient leisure spending, and renewed growth in economy and midscale hotel segments are providing confidence that the industry remains on solid footing despite ongoing challenges.
