We’re seeing the hotel industry’s story of the year unfold in the Choice Hotels International-Expedia rift.
The question the hotel owners and operators have been trying to figure out for the past 10 years is if third-party Internet sites are good or bad for their business. Now that Expedia, the owner of the hotels.com site, has pulled all hotels affiliated with Choice from all of its sites, we’re about to find out how much love there is between the two industries. It’s dot-com and marketing vs. real-estate and operations.
Third-party reservations sites have been as important for some hoteliers during the current recession as they were for them during the aftermath of 9/11. There’s no denying they filled a void in the industry; otherwise they would not have survived. But how far is the industry willing to go in giving up room inventory and rate control? Choice CEO Steve Joyce is making his company the guinea pig to answer that question.
Read “Choice’s stand is the story of the year.”
Those busy data crunchers at Smith Travel Research are at it again. Revenue per available room for U.S. hotels for third quarter 2009 dropped 16.9 percent to US$58.61 in year-over-year comparisons, showing minimal improvement from the previous two quarters, according to STR.
Overall, the industry’s occupancy dropped 7.9 percent to 60.5 percent, and average daily rate fell 9.8 percent to US$96.84.
“Third quarter U.S. lodging industry performance improved marginally from the first two quarters of 2009, but remained weak,” said Bobby Bowers, senior VP at STR. “The industry has now experienced five consecutive quarterly RevPAR declines and eight consecutive quarterly occupancy declines. Fourth-quarter comparables will be much easier, but we still expect negative industry RevPAR movement for the remainder of 2009 and most of 2010.”
Overnight stays in Spanish hotels fell 6.6 percent in September, after a fall of 5 percent in August, statistics institute INE said Thursday. In a news brief posted on Reuters.com, the institute said hotel rates also fell 6.8 percent after a decline of 4.6 percent the month earlier.
Spain’s tourism sector accounts for about 15 percent of the economy, but has been battered by the global recession. Data showed the number of foreign tourists visiting Spain was 9.5 percent lower in September than the same month a year earlier at 5.1 million.
Another warm-weather resort is feeling the pinch of the global recession.
The 101-year-old Elbow Beach Hotel in Bermuda is to close its main building at the end of November, putting 160 people out of work (half of its work force). The hotel will close 60 percent of its 235 rooms on 30 November. Also under the ax are the South Shore resort's main lobby and two popular eateries, The Seahorse Grill and the Veranda Rum Bar.
The hotel was named one of the world's top 500 properties this year by Travel + Leisure Magazine.
GM Frank Stocek said the state of the economy factored in owner Prince Khaled bin Sultan bin Abdulaziz Al Saud's decision to hold off on a major renovation of the 101-year-old resort and focus on a smaller upgrade.
Part of the ground floor of the property will reopen in March after a US$10-million refurbishment, but hotel rooms in the main building will remain closed for three to four years.
The union representing 9,000 San Francisco hospitality workers voted to authorize a strike Thursday as negotiations to renew a contract governing more than 60 San Francisco hotels remain stalled over how to pay for health-care coverage, reports the San Francisco Chronicle.
Compiled by Jeff Higley.
