The rising cost of labor is having an impact on the hotel business, two major hotel chain CEOs told CNBC on Wednesday.
Jonathan Tisch, chairman and CEO of Loews Hotels, said the pressure of higher wages is "absolutely" an issue.
"When you look at the pressure on margins through labor costs, through energy costs, through insurance, through real estate taxes, we have to get smarter and better about how we operate our hotels to increase margins where ever we can," he said in an interview with "Power Lunch."
"Increasing labor costs are an issue in most of the markets and will continue to be," he added.
His sentiments were echoed by Hilton Worldwide President and CEO Christopher Nassetta.
"You have the cost of building hotels going up at a pretty rapid rate in the United States, cost of labor going up, cost of interest rates going up and availability of money getting a little bit tougher or tighter," Nassetta said in an interview with Seema Mody on "Power Lunch."
"The consequence of that is that you see supply numbers going down. Ultimately, that is healthy for the industry."
The American job market is tight and getting tighter, according to the Federal Reserve's latest "Beige Book" summary of economic activity, released Wednesday. The central bank said employment grew "modestly or moderately across most of the nation" but said employers are having more difficulty finding the right workers for the right jobs.
Wages have been steadily increasing. The average hourly earnings for September had a 2.8 percent year-over-year increase. In August, there was a 2.9 percent gain, the biggest year-over-year rise since the recovery began in 2009.
Interest rate have also been rising. The Fed expects to hike rates again in December, and has telegraphed three raises in 2019.