Marriott CEO Flags Wealth Divide, Government Travel Drop, More Tech Spending
Marriott's performance tells a tale of two U.S. economies. While wealthy travelers continue to book suites and upgrade their stays, budget-conscious travelers are pulling back.
Marriott CEO Anthony Capuano spoke Thursday at the Bank of America Gaming and Lodging Conference. The main points:
Capuano described a "bifurcation of the consumer." High-income customers "continue to prioritize spending on travel and experiences." Lower-income customers: "feeling more directly the impact of some of these economic headwinds. … It's one of the reasons you're seeing more softness on the demand side in the lower chain scales." “Deals are getting financed, but they’re not at the leverage that our partners would like,” Capuano said. “They are at higher interest rates than our partners wish.” Government spending at his hotels is "down double-digits." Tech spending: Marriott said last month that its annual tech spending has been about $100 million more a year than usual since 2023. Capuano described next steps and how the company is thinking of agentic AI.Anthony Capuano has a problem that captures the economic moment.
skift.
