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Bernard Baumohl, chief global economist at The Economic Outlook Group, provided his insights during a session on ”A New World Order: Trump’s Impact on the US & International Economy,” during the HSMAI Destination Marketing Executive Roundtable, February 19, 2025. Among the takeaways:
- Lodging construction spending fell 5.6% in 2024 to $23.3 billion, slowing room supply growth and likely driving higher prices. While this benefits hotel revenues, broader risks add uncertainty.
- Global tensions—China-Taiwan trade issues, Iran’s nuclear developments, and severe weather— all have the possibility to disrupt travel. Domestically, U.S. political instability and diplomatic tensions may deter international visitors while pushing more Americans to travel abroad.
- With fewer new hotels entering the market, existing properties have an opportunity to capitalize. However, navigating economic and geopolitical shifts will require careful planning.
HSMAI Executive Roundtables are networks of like-minded senior hotel leaders that meet face-to-face and virtually. They are a unique opportunity for executive-level peer groups to have meaningful dialogue in a confidential environment.