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Hoteliers Adjust to US Government Slowdown – Image Credit Unsplash+
It’s no secret government policy changes have shifted the ways domestic organizations operate in 2025. For U.S. hotels, slowdowns of government-related business have impacted a variety of stakeholders in the space, and depending on the portfolio, some more than others.
In the latest national report by Hotel Investment Today, Paul Breslin has contributed key insights on the impact of US policy changes on the hospitality sector.
The most significant impact stems from reductions in directed or controlled travel, according to Paul Breslin, managing director at Horwath HTL.
“When agencies restrict travel for conferences, training or workshops, it directly translates into fewer room nights,” Breslin said. “While the hotel industry traditionally remains apolitical—embracing a ‘love all, serve all’ philosophy—policy shifts inevitably influence travel behavior. Much like corporate cost-cutting strategies, government mandates to reduce travel budgets have a ripple effect, diminishing hotel revenues and, ultimately, asset values.”
“Historically, government travel has been driven by official duties such as military operations, personnel training, recruitment, legal proceedings and administrative functions,” Breslin said. “Encouragingly, the core reasons for government travel remain intact. The purpose hasn’t changed—only the volume and discretion around it.”
Top-performing operators are proactive. They strengthen relationships, refine their value offerings and leverage platforms like the GSA and other government portals to market effectively. The government itself provides tools to help hotels connect with travelers on official business—hoteliers just need to use them strategically.
The impact of slower government-related business is more closely tied to location than to hotel type, asserted Breslin.
“Whether full-service or select-service, properties situated in areas that traditionally serve government travelers are experiencing similar declines. The geographic footprint—rather than the brand tier—is the key determinant,” he said.
Read the full report here.
Paul Breslin holds the position of Managing Director of Horwath HTL’s Atlanta office.
This article originally appeared on Horwath HTL.
