US Hotel Industry Desperate For Business

Major US hotels are reporting declines of 35% or more in annual revenue as a result of economic conditions. Commercial hotel mortgages are in default or seriously behind in payments with foreclosure pending.

"People are not traveling like they used to. They don't have the money. And there are very few convention bookings anymore." said the President of a major Hotel chain.

Fleet-operators of shared-van rides to and from the airports report that often they have only one passenger in a van as opposed to the 8 or 10 persons per van they carried last year.

"Our vans sit parked all day long at the airports just waiting for business. We will take anyone to anywhere, just to stay in business. Our drivers used to make $50,000 or more a year but now they can barely pay for a tank of gas."

The airlines are doing their utmost to stay in operation, many have been successful in obtaining advance reservations for at least 50% of the aircraft's capacity.

While the Obama administration says that the economy has improved, it appears that most of American industry is on the very edge of financial ruin. "One more bad month and we will be out of business." said the operator of a national Hotel chain.

"We are open for business, but really we are already out of business" said the manager of another motel chain, "We just wait and pray for a miracle."

Major Spa and Golf Resorts throughout the country are actually in foreclosure but you wouldn't know if from their appearance. "We have reservations and we need to provide the service our customers have paid for, but when they leave there are no others to take their place. That's when you will see property going into disrepair or hotels boarding-up their glass fronts."

The government bail-out monies did not extend to the hotel industry or the tourism industry in general. The focus has been on stabilizing the banks, insurance companies, and the auto manufacturers. If those industries show even nominal growth there may be a glimmer of hope for the tourism industry although it seems to the major hotel chains that it will be a case of "too little, too late." Sphere: Related Content