Proof Of Recession Problems: Hotels
A couple of weeks ago, I wrote on an impending problem, that being a collapse of the commercial real estate market. Well, in today’s CNN Money report, there’s a story talking about luxury hotels starting to default on loans, and how that could spell disaster for the travel and vacation industry.
I can’t say I’m surprised by this, only mad at myself for not thinking about it earlier than now. Hotels have been slashing prices in vacation spots, especially out west, trying to lure visitors in while things were going bad financially. Unless they were already sitting on large pools of cash, there was no way that some of these places could keep up, even if they could fill up, because many of them slashed prices by more than 70% at times. Yes, a great deal for the consumer, but only if they could take advantage of it, then spread around a little bit of that cash while they were at it.
When I was in Reno in December, I saw first hand how casinos out that way were struggling to get people into the place just to gamble; never even thought about how much had to be going through their fingers in missed registrations. And, for casinos, you can only lay off so many people and continue running. It has to be the same for luxury hotels, since part of their appeal is always being able to immediately take care of their top paying customers.
This doesn’t mean that I won’t still look for the best deal when I head out of the area; it just means that I hope, when I do go, that I can still get a nice room wherever it is I go.