Margins start to thin for hospitality but sector remains optimistic

Margins in the lodging sector are starting to soften due to labor issues, rising interest rates and elevated construction costs, according to Daniel Weede, partner in Morris, Manning & Martin’s hospitality, real estate, and real estate development & finance practices. That said, “there’s a lot of optimism in this industry, and I think, at least for the next several years, that’s likely to stay,” Weede said.