Moody's Investors Service said Wednesday that it may cut Hyatt Hotel Corp.'s senior unsecured rating, citing profit declines and concerns over soft demand.

The lodging sector has struggled during the recession as leisure and business travelers have postponed or foregone trips in an effort to save cash.

"Although the pace of decline in industrywide hotel occupancy has begun to decelerate, room rates remain under pressure. Thus, Hyatt's earnings may decline again in 2010," Moody's said.

The ratings agency put Hyatt's "Baa1," or investment-grade, senior unsecured rating under review. It affects about $2 billion in debt.

Last month Chicago-based Hyatt, which went public in November, said its fiscal fourth-quarter loss narrowed as it cut expenses to offset nearly flat revenue.

The hotel operator's stock fell 15 cents to $33.80 in afternoon trading.