Why have leisure and hotels held up relatively well during downturns?

As they did in the early 1990s, the leisure and hotel sectors experienced smaller-than-average capital value falls during the most recent downturn. The weight of evidence is that these two niche sectors outperformed in the early 1990s because they entered the downturn looking relatively cheap compared with the wider market. It seems clear to us, however, that this time much of the relative outperformance of leisure and hotels can be attributed to the weak exchange rate.