From the March issue: The swooning economy is putting a time-honored hotel industry argument — that slashing room rates does not actually boost revenues — to a high-stakes test. If the notion is right, then the rampant price cuts now under way will only drag down revenue and profits further, putting some hotels under severe financial strain. PKF Hospitality Research forecasts that one of the deepest and longest recessions in the industry’s history will lead to a 25 percent spike this year in full-service U.S. hotels lacking the cash flow to service their debt.
Recession strains hoteliers’ strategy
March 17, 2009 05:02PM
By Catherine Curan
