Sept 21 (Reuters) – U.S. hotel owners could see greater pressure on their ability to service the loans backing their properties, as a decline in leisure stays coupled with rising costs are expected to pinch their profits.

In the second quarter, many hotel owners reported rates of leisure stay anywhere between 25%-35% above 2019 levels.

But as the surge in travel after the pandemic wears off, demand is shifting away from pricey leisure stays and towards lower-rated group business travel, according to a Wednesday report from ratings agency Fitch.

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