From protests in Hong Kong to uncertainty around trade, the damage from political turmoil involving China is already baked in for some large U.S. hoteliers. And even with the initial phase of a China deal in sight, the cost may not be easy to make up for.
Expedia Group, an online travel service, is the latest leisure company that cited Hong Kong as one reason for its disappointing results. Last week, Marriott International said that revenue-per-available-room, or RevPAR, a key hotel business metric, declined 27% in Hong Kong in the third quarter. And that came shortly after Hyatt Hotels and Hilton Worldwide each reported a bigger decline in the same measure.
“Revpar is seeing a sharp slowdown from earlier this year,” said Bloomberg Intelligence analyst Brian Egger. This slump, he said, can be attributed to a combination of things, including a slowing economy in China, protests in Hong Kong, and the U.S.-China trade war.
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