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Hotels Cash In on Business Travel as Airlines Struggle

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Hotels Cash In on Business Travel as Airlines Struggle

Business trips are fueling hotel demand, but rising room rates mean CFOs pay more.

Corporate travel’s comeback is showing up strong across quarterly earnings. But the bottom-line wins aren’t showing up in the travel and entertainment sector’s traditional heavyweight categories.

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While airlines continue to contend with fuel costs, operating expenses and pricing pressures, hotels and conference venues are benefiting from demand for business meetings, group events and corporate gatherings.

Corporate travel is no longer just a question of how frequently employees return to airports.

Third-quarter results from Hilton, Marriott and Hyatt reveal accelerating demand for corporate gatherings, business meetings and work-related hotel stays. Group bookings are outperforming several other lodging segments, while business travel associated with technology investment, manufacturing and infrastructure development is creating additional demand.

For corporate finance leaders preparing 2027 travel and expense budgets, the numbers point to a market in which the purpose of a trip may matter more than the volume of trips.

Hilton offered one of the clearest indications of the trend in its Oct. 27 earnings report last Tuesday. The hotel operator reported an 8.3% year-over-year increase in third-quarter revenue per available room (RevPAR) from individual business travelers. Group RevPAR rose 8.2%, compared with just 1.6% growth in leisure transient RevPAR.

More revealing was CEO Christopher Nassetta ’s outlook for 2027. He projected overall RevPAR growth of 3% to 4%, with business transient travel expected to outperform group bookings, followed by leisure.


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