NEW YORK -- Hotel leaders were largely upbeat about global travel demand at the NYU International Hospitality Investment Forum here on Monday, though impacts from the Iran war tempered some of that optimism.
During a panel moderated by CNBC anchor Sara Eisen, Hyatt Hotels Corp. CEO Mark Hoplamazian flagged concerns about the conflict's longer-term toll on energy infrastructure.
"All of the oil executives that I speak with are very concerned about structural things that are going to persist even after a peace is established," said Hoplamazian. "Getting a refinery up and running again, getting the flow of LNG [liquified natural gas] going again -- it takes time, and these elevated gas prices are going to affect customers."
Accor CEO Sebastien Bazin acknowledged that Accor has a relatively outsized exposure in the Middle East, pegging the region at roughly 10% of the company's revenue. The group's broad global footprint, however, has helped Accor weather some of that impact.
"Half the customers that we lost who no longer go to Dubai, we'll be gaining them in Egypt, Morocco and other places," said Bazin.
IHG Hotels & Resorts CEO Elie Maalouf estimated that the Middle East region, which accounts for roughly 5% of its business, was down around 50% at its peak, with Saudi Arabia holding up better than most markets. He emphasized that a recovery is already underway.
"Business travel is coming back, leisure's coming back with good rates," Maalouf said. "Airlines are busy. It's going to be gradual, but there's no doubt, given the level of investment and leadership in that region, it will come back."
Economy and midscale hotels rebound
Addressing U.S. demand, Hilton CEO Christopher Nassetta pushed back against the K-shaped economic narrative that has been in the headlines in recent years, in which high earners surge ahead while lower earners lag behind.
He argued that a "C-shaped" economy -- with the "C" standing for convergence -- is now taking shape, as the midscale and economy segments begin to recover alongside continued strength in upscale and luxury.
"It's not politically advantageous for people to be talking about things getting better -- people want to talk about a 'K' economy because the political system is so divisive," said Nassetta. "I'm just offering you hard data that says people in those other price points are traveling more. They're traveling more on weekends, they're traveling more on weekdays, they're traveling more for vacations, they're traveling more for business."
Nassetta credited several factors with driving a recovery in those price segments, including large-scale federal infrastructure spending, a reshoring of manufacturing and construction activity around AI data centers and other facilities.
"Building the power facilities and building the bridges and the tunnels and the ports -- that is all getting done by the middle class," he said.