I think basically any form of physical contact can be sexual depending on the people engaging in it. It depends on the people doing the hugging and how they interpret it. For example, someone who hugs a lot might not find a basic hug with anyone sexy in any way shape or form. However, for another person who has very limited/no physical contact in their daily life, a hug from someone they find attractive could be the most stimulation they've had in months. It really depends. For me, there are plenty of people I could hug and it wouldn't be sexual for me... and I can think of some people that I can't stand five feet away from without it feeling sexual. It has to be interpreted on a case by case level. But I don't think a blanket statement such as hugs are inherently sexual would be accurate.