Hoteliers entered 2008 on the wave of a seller's market that analysts said was here to stay for at least another year or two. Little did they know that by the end of the year, the deepening global economic crisis would have reversed it completely into what analysts now are calling a buyer's market. The quickly changing forecasts were the big story of the year, but economic woes did not keep some hotel companies from making investments of interest to the business travel buyer. Here are the stories
Business Travel News has identified as the top lodging stories of the year:
Hotel CEOs See Fewer Rate Hikes, More Discounts AheadEven before the biggest economic quakes of the fall were to arrive, CEOs of the major multibrand hotel companies saw the bad times coming and warned of dropping revenues, decreasing occupancy and even rate discounting on the horizon. Their predictions would continue to become bleaker throughout the rest of the year.
Wall Street Meltdown To Reduce Manhattan OccupanciesThroughout the duration of the seller's market, no hotel market produced more headaches for travel buyers than New York. Hotels in Manhattan had seemed invincible, recording record occupancies and double-digit percentage-point annual rate growth. However, the combination of the collapse of financial market powerhouses, declining inbound international travel and an influx of new properties has brought renewed negotiating opportunities for buyers.
Marriott To Export E-Folio Data CapabilitiesAvailability of electronic hotel folio data—which breaks out such charges as food service and taxes from room rate to ease the expense reporting process—has grown steadily in the past several years, but it largely has remained a U.S. phenomenon. Marriott International changed that in October, saying it was exporting e-folio capabilities outside of the United States through an upgrade of its property management system. Other hotels said they have the capability to follow suit but are waiting to see demand for the data expressed by buyers.
Hotel Development Booming In Emerging BRIC MarketsIn terms of international hotel development, India and China were the stars of 2008. Numerous chains scrambled to make announcements of development deals in the emerging markets, particularly in the buildup to the Olympics in Beijing and high occupancy levels and rate growth in India.
Hotels Concentrate Investments On Invigorating BrandsIn a year devoid of major merger and acquisition activity, the hotel industry instead focused on the reestablishment of legacy brands. Starwood Hotels & Resorts Worldwide announce a nearly $4 billion upgrade for its Sheraton brands, including the renovation of 50,000 guest rooms, lobby renovations and new hotel openings
(BTNonline, April 28). Hyatt Hotels & Resorts dedicated $1.3 billion to overhauling its Regency brand
(BTNonline, July 21). Carlson Hotels Worldwide, meanwhile, plans to increase the number of its Radisson properties in the Americas from 200 to 300 while improving its image in the region
(BTNonline, April 29).