Surviving the First Half of 2010 Is Foremost on Hoteliers’ Minds

Additional foreclosures loom over the hotel industry in 2010, as hoteliers run out of ways to economize while demand remains low and economic recovery elusive. Although industry operators’ resourcefulness has lowered average breakeven occupancy to 50 percent, diminished rates have limited profitability. Supply will grow in 2010 when rooms already in the pipeline open. Demand should recover in 2011, although the unprecedented nature of the current economic situation means that all predictions are subject to constant scrutiny and revision.