International bookings from Canada, western Europe and Mexico declined
International tourism to U.S. western mountain destinations fell in May, pushing occupancy down 0.7 percent even as ADR rose 2 percent, according to DestiMetrics. Pictured is Mount Crested Butte, a ski resort town in Colorado.
Vishnu Rageev R is a journalist with more than 15 years of experience in business journalism. Before joining Asian Media Group in 2022, he worked with BW Businessworld, IMAGES Group, exchange4media Group, DC Books, and Dhanam Publications in India. His coverage includes industry analysis, market trends and corporate developments, focusing on retail, real estate and hospitality. As a senior journalist with Asian Hospitality, he covers the U.S. hospitality industry. He is from Kerala, a state in South India.
International tourism to U.S. western mountain destinations fell in May, lowering occupancy 0.7 percent, according to DestiMetrics.
Summer booking hesitancy persisted as bookings from Canada, Europe and Mexico declined.
DestiMetrics tracks data from about 28,000 lodging units across 17 mountain destinations in seven western states.
MOUNTAIN DESTINATIONS IN the western U.S. saw a drop in international tourism in May amid economic uncertainty, affecting resort occupancy, according to DestiMetrics. ADR rose 2 percent, while occupancy fell 0.7 percent year over year.
Despite some recovery in financial markets and economic indicators, summer booking hesitancy persisted and international bookings from Canada, Western Europe and Mexico continued to decline, the report found.
“The financial and political turbulence of the past few months continues to impact bookings—even with some good economic news and an uptick in consumer confidence during May,” said Tom Foley, Inntopia’s senior vice president of business intelligence. “Memorial Day weekend, the unofficial kick-off to the summer season, was pretty ‘so-so’—as expected. But the larger concern now is that the two busiest months of summer—July and August—are clearly underperforming.”
The slower booking pace in May reversed the year-over-year summer occupancy gain. With daily rates up 3.7 percent for the season, overall occupancy shifted from a year-over-year increase in April to a 1.2 percent decline by May 31, the report said.
Bookings from Canada fell 55.5 percent year over year in May across Western mountain destinations, while bookings from Western Europe declined 35.5 percent and Mexico bookings dropped 5.4 percent, DestiMetrics revealed. Domestic bookings rose 1.7 percent. Overall summer booking pace in May was down 7.1 percent.
After several summers of year-over-year growth, occupancy for the upcoming season is down, though higher rates are offsetting some losses, it said. July occupancy is down 5.1 percent, August 0.9 percent and September 4.7 percent.
DestiMetrics tracks performance data for about 28,000 lodging units across 17 mountain destinations in Colorado, Utah, California, Nevada, Wyoming, Montana and Idaho.
Mixed bag
The Consumer Confidence Index rose 12.3 points to 98 (up 14.4 percent) in May, rebounding from April’s five-year low of 87.7, according to the Conference Board. Confidence increased across income, age and political groups. In contrast, the University of Michigan’s Consumer Sentiment Index held steady at 52.2, the first non-decline in four months. Respondents to both surveys were more optimistic about U.S.–China trade but remained concerned about wages and future inflation.
Unemployment held steady at 4.2 percent in May, but job growth slowed with 139,000 new jobs added, DestiMetrics said. March and April figures were revised down to 120,000 and 147,000, respectively. Wages continued to outpace inflation, rising 3.9 percent year over year.
Consumer prices rose 0.1 percent in May and inflation increased from 2.3 to 2.4 percent—the first rise since January.
“There is some evidence that tariff costs are being passed to consumers, but drops in energy and some commodities like vehicles and apparel have helped offset daily expenses,” Foley said. “The good news for the travel industry is that, so far, consumers are paying less to reach their destinations this summer, with gasoline prices and airfares down from last year, helping offset higher lodging costs.”
Keeping an eye on
Memorial Day weekend saw year-over-year occupancy gains of less than 1 percent over the three nights, the report said. Expectations around the July Fourth period are also trailing last year, except for July 4 (up 2.8 percent) and July 5 (up 2.1 percent). All other dates from July 1 to 11 are down and continue to decline.
Economy properties priced up to $250 per night saw slight rate and occupancy increases in May, boosting revenue—the only category to show gains in occupancy or revenue, the report said. Properties priced at $251 to $400 lowered rates slightly but saw no occupancy improvement and weaker revenue. Luxury properties at $401 and above raised rates by 1.4 percent, leading to a 3.2 percent drop in occupancy.
“The most notable conclusion from this month’s data is the undeniable impact that rate is having on bookings,” Foley said. “Consumers are more price sensitive than they were during the peak inflation surges in the immediate post-pandemic period. We’re seeing a clear pattern: just about every time year-over-year daily rates rise at all, the booking pace declines—and on the rare occasions that rates have dropped, those dates pick up bookings.”
Foley observed that “the mountain lodging industry appears to be shifting to a quality-over-quantity approach—targeting fewer guests who are willing to pay more, while sacrificing higher volume.”
“And this may be a solid—if not the only—approach available right now,” he said. “As volatility continues and consumers remain cautious while awaiting the impact of tariffs on inflation, lodging properties will need to maintain balanced rate management and revisit past value-added strategies.”
A recent Deloitte study found that amid economic uncertainty and inflation, consumers are prioritizing value over low prices, prompting brands, including hotels, to adapt.
Announcement of $100,000 H-1B visa fee triggers panic among Indian professionals.
The fee applies only to new petitions.
IT companies are reportedly reviewing staffing and travel.
THE TRUMP ADMINISTRATION’S announcement of a $100,000 fee for new H-1B visa petitions, effective Sept. 21, reportedly triggered panic among Indian H-1B holders. Many rushed to book last-minute flights, resulting in fully booked planes and higher fares.
The move caused anxiety among IT employees whose work depends on U.S. assignments, according to India Today.
However, the U.S. Citizenship and Immigration Services later clarified that the fee applies only to new petitions, not existing visa holders, providing some relief but not ending widespread uncertainty.
Airports and travel agents reported a surge in cancellations and rescheduling requests, while families of visa holders faced disruptions during the festive season.
Friday’s announcement sparked further confusion, culminating in chaotic scenes aboard an Emirates flight from San Francisco to Dubai, AeroTime reported. The plane was held on the tarmac for three hours as H-1B holders tried to determine if they could re-enter the U.S. The policy change created confusion over who would be affected.
India’s external affairs ministry said the fee could have humanitarian consequences “by disrupting families.” The Indian government said it “hopes these disruptions can be addressed by U.S. authorities” and emphasized that the exchange of skilled workers has “contributed enormously” to both nations, The Guardian reported.
H-1B visas are valid for three years and can be renewed for another three. The Trump administration says the increased fee helps U.S. companies stay competitive and create more jobs. However, Indian stakeholders raised concerns about its impact on the IT sector, citing potential disruptions to operations and project timelines. IT companies are reportedly reviewing staffing and travel while managing higher compliance requirements.
“Service exports have finally been dragged into the global trade and tech war,” Madhavi Arora, chief economist at Emkay Global Financial Services, wrote in a note on Sunday, according to CNN.
Arora also suggested the policy could have an unexpected upside for India, potentially bringing talent back home. While it could concentrate top professionals within India’s largest tech firms, it could also “catalyze India’s transformation into a more powerful global innovation and delivery hub.”
Meanwhile, U.S. Citizenship and Immigration Services data for fiscal 2025, show Amazon as the top H-1B recipient, securing about 10,000 visas.
The recent 50 percent tariff imposed by the Trump administration on India was also met with backlash from the country.
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The H-2B visa program protects U.S. jobs and wages, according to AHLA citing a study.
It allows hotels and resorts to meet travelers’ needs while supporting the economy.
It provides foreign workers for seasonal jobs when domestic workers are unavailable.
THE H-2B VISA program does not harm U.S. jobs or wages but increases pay and supports the labor force, according to an Edgeworth Economics study. Citing that study, the American Hotel & Lodging Association said the program enables hotels and resorts to meet travelers’ needs while supporting the workforce and economy.
The Edgeworth study for the H-2B Workforce Coalition found the program allows businesses to hire foreign workers for seasonal jobs when domestic workers are unavailable. It showed no evidence that increases in H-2B visas reduce U.S. employment or wages. Instead, each H-2B worker supports three to five local jobs and areas with more H-2B workers saw wages grow 1.6 percent faster.
“Areas that hired more H-2B workers under the higher visa cap saw greater job and wage growth among U.S. workers,” said Steve Bronars, partner at Edgeworth Economics, citing findings consistent with an earlier analysis by the U.S. Government Accountability Office.
Ashley McNeil, AHLA’s vice president of federal government affairs and chair of the H-2B Workforce Coalition, said the new analysis underscores the H-2B program’s clear value to local communities.
“The hotel industry, which is still 200,000 workers short compared to pre-pandemic levels, relies on legal guest worker programs to augment our workforce, particularly to address seasonal demands,” McNeil said. “Access to the H-2B visa program has been critical in allowing hotels and resorts of all sizes to meet travelers’ needs, while supporting the local workforce and economy.”
The program has also helped businesses manage peak-season labor shortages, easing the workload for full-time employees. Landscaping accounts for nearly 40 percent of certified H-2B workers. Hotels and motels account for 8.67 percent, support activities for forestry 6.3 percent and seafood processing and packaging 5.65 percent.
“This study reaffirms what our members have long recognized: despite extensive recruitment efforts, there remains a critical shortage of U.S. workers willing or available to fill temporary positions that are currently being filled by H-2B workers,” said Arnulfo Hinojosa, COO of the Federation of Workers and Employers of America and vice chair of the H-2B Workforce Coalition. “H-2B workers allow seasonal businesses to operate at a higher capacity and create more U.S. jobs.”
Meanwhile, President Donald Trump recently signed a proclamation raising the H-1B visa fee to $100,000 annually, a move that could affect Indian professionals in the U.S.
House introduces AFA to boost franchise model and hotel operations.
The act establishes a joint employer standard.
AHLA backs the bill, urging swift adoption.
THE HOUSE Of Representatives introduced the American Franchise Act, aimed at supporting the U.S. franchising sector, including 36,000 franchised hotels and 3 million workers nationwide. The American Hotel & Lodging Association, backed the bill, urging swift adoption to boost the franchise model and clarify joint employer standards.
The AFA amends the Fair Labor Standards Act and the National Labor Relations Act, which since 2015 have created uncertainty for franchisors and franchisees, AHLA said in a statement.
Rep. Kevin Hern (R-Oklahoma) and Don Davis (D-North Carolina) introduced the AFA.
“Hotel franchising is a pathway to the American Dream for many entrepreneurs,” said Rosanna Maietta, AHLA president and CEO. “It is a proven win-win business model that enables partnerships between franchisees and franchisors. The American Franchise Act codifies a clear joint employer definition and is essential to protecting this framework.”
AFA aims to protect the franchise model, which has long enabled women and minority entrepreneurs to run their own businesses with support from larger brands, the statement said. It will clarify the employment relationship by establishing a joint employer standard that protects workers and preserves franchisee autonomy.
Mitch Patel, AHLA board chair and Vision Hospitality Group CEO, said that as a hotel franchisee, he has seen how the model enabled him and others to achieve the American Dream.
“Throughout my career, my hotel business has employed thousands of people who have built lifelong careers in our industry,” he said. “The American Franchise Act is essential to preserving this foundation. For the benefit of both employers and employees, we strongly encourage the swift passage of this critical legislation.”
"As one of the few franchisees in Congress, I understand how damaging an ever-changing joint-employer rule is to the franchise business model,” said Hern. “I'm pleased that we were able to come together in a bipartisan effort to create legislation that safeguards small businesses and individuals working to achieve the American Dream across the country."
Davis said changes to joint-employer rules have created prolonged uncertainty in the industry.
“The American Franchise Act aims to restore stability by clarifying that franchisors and franchisees operate as independent employers while safeguarding workers through established labor standards,” he said.
Separately, a petition for a referendum on Los Angeles’s “Olympic Wage” ordinance, which sets a $30 minimum wage for hospitality workers by the 2028 Games, fell short of signatures. The ordinance will take effect, raising hotel wages from $22.50 to $25 next year, $27.50 in 2027 and $30 in 2028.
Noble broke ground on StudioRes Mobile Alabama at McGowin Park.
The 10th StudioRes expands Noble’s long-term accommodations platform.
Noble recently acquired 16 WoodSpring Suites properties through two portfolio transactions.
NOBLE INVESTMENT GROUP broke ground on StudioRes Mobile Alabama at McGowin Park, a retail center in Mobile, Alabama. It is Noble’s 10th property under Marriott International’s extended stay StudioRes brand.
“Noble is institutionalizing one of the most resilient and undersupplied segments at the intersection of hospitality, mobility and how people stay,” said Shah. “We are scaling a branded platform to capture secular demand that creates stable cash flow and long-term value.”
In May, Noble acquired 16 WoodSpring Suites properties through two portfolio transactions, expanding its platform in branded long-term accommodations.
Noah Silverman, Marriott International’s global development officer, U.S. & Canada, said breaking ground on the 10th StudioRes with Noble reflects the brand’s growth and the companies’ three-decade partnership.
“With both companies’ expertise in long-term accommodations, Marriott’s distribution channels, and the power of our nearly 248 million Marriott Bonvoy members, we are confident StudioRes is uniquely positioned to generate customer demand at scale, drive performance and sustain long-term growth,” he said.
Meanwhile, Marriott has more than 50 signed StudioRes projects, about half under construction, the statement said. The first StudioRes opened in Fort Myers, Florida.
Hersha Hotels & Resorts sold The Boxer Boston to Eurostars Hotels.
The company acquired the property in 2012 for $12.6 million.
The property now sold for $23.6 million.
HERSHA HOTELS & RESORTS sold The Boxer Boston, an 80-room hotel in Boston’s West End, to Eurostars Hotels, part of Spain’s Grupo Hotusa. The company, which reportedly acquired the property in 2012 for $12.6 million, received $23.6 million for it.
The seven-story hotel, built in 1904, is near TD Garden, the Charles River Esplanade, One Congress, North Station and Massachusetts General Hospital, said JLL Hotels & Hospitality, which brokered the sale. It also has a fitness center.
Hersha Hotels & Resorts is part of the Hersha Group, founded in 1984 by Hasu Shah. Jay Shah serves as senior advisor and his brother Neil Shah is president and CEO.
JLL Managing Director Alan Suzuki, Senior Director Matthew Enright and Associate Emily Zhang represented the seller.
"The Boxer’s prime location at the crossroads of Boston's West End, North End and Downtown districts, combined with its strong cash flow and its unencumbered status regarding brand and management, made this an exceptionally attractive investment," said Suzuki. "Boston continues to demonstrate resilient lodging fundamentals driven by its diverse demand generators, including world-class educational institutions, medical facilities, corporate presence and convention and leisure attractions."
The property will become the Spanish hotel chain Eurostars’ fifth U.S. hotel, supporting the group’s North American expansion, the statement said.
Amancio López Seijas, president of Grupo Hotusa and Eurostars Hotels Co., said the addition of Eurostars’ The Boxer strengthens the company’s presence in key locations and promotes urban tourism.