Deutsche Bank Reveals Possible Concerns for Hotels
Skift Take
Concerns over Trump 2.0's impact on the hotel industry are rising, with Deutsche Bank noting potential early signs of a RevPAR downturn.
The concerns over the impact Trump 2.0 actions will have on the hotel industry accelerated in the past few days, prompting numerous media and analyst reports. Deutsche Bank analyzed the most recent RevPAR data points from STR. Their observations are that the rate of growth in weekday RevPAR has outpaced that of weekend (business versus leisure), while group and business transient RevPAR is predominantly driven by Urban Luxury and Upper Upscale ADR performance. Weekend RevPAR, a proxy for leisure, is being hampered by select service occupancy, which DB says has historically been one of several potential leading indicators of a RevPAR downturn. DB said they are not making the call for a full-bore RevPAR downturn, but they do see elements of the current environment that have tended to foreshadow prior industry downturns.
Baird said the decline in consumer and travel stocks last week followed the 1Q25 guida
