Business travel may never fully return, hurting hotel stocks, Morgan Stanley says

Grand Hyatt at SFO
Source: SFO Airport

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Business travel may never return to its pre-pandemic levels, hurting hotels over the long term, Morgan Stanley said Friday in a note to clients.

The firm's analysis is based on an October survey of around 200 corporate travel managers who oversee $8 billion in travel spend. The managers said they believe travel spend in 2021 will be 53% below 2019's levels, and that beginning in 2022, 22% of meetings will be conducted virtually.

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