The Perfect Storm

The hotel industry has experienced an unprecedented drop in demand; but when conditions improve, they should do so with a vengeance.

1 minute read

August 20, 2003, 1:00 PM PDT

By Chris Steins @planetizen


"The hospitality industry hasn't been in just a downturn over the past three years, it’s getting hammered by the perfect storm, and much more,' says John J. DePaul, president and CEO of the Melrose Hotel Company, a wholly owned subsidiary of Berwind Property Group, Ltd., of Philadelphia, which owns and manages four big-city hotels in the United States. 'First, starting in mid-2001, hoteliers faced a downturn in business travel, and hence lower occupancy and room rates. Then, the industry endured the near collapse of travel following 9/11 in 2001, and subsequent anthrax scares through the rest of the year. Then, it was hit by events before, during, and after the war in Iraq, including SARS. Finally,' he notes, 'with the national economy still struggling in the near term, the industry faces continuing uncertainty for the rest of 2003, pushing average room rates to 1996 levels.' "

Thanks to Urban Land Magazine

Monday, August 18, 2003 in Urban Land Magazine

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