Speaking during this week’s New York University International Hospitality Industry Investment conference, Best Western International CEO David Kong said since June 4 hotels located around the Gulf Coast experienced a "tremendous amount of cancellations" and "the number of inquiries coming in have dropped significantly" due to the British Petroleum oil leak raging through the Gulf of Mexico.
The likes of
Starwood Hotels & Resorts may be going in the other direction, but some of the moderately priced lodging brands are planning to bulk up their sales forces in an attempt to capture market share. Due to current economic woes, some corporate travel managers are cutting costs by downgrading the hotel properties within their programs--although how much depends on who you talk to.
Marriott CFO Arne Sorenson said Marriott did not observe trading down in brand tiers by corporate accounts during the December quarter--as many predicted would happen. He said full-service properties were "able to retain guest loyalty." On the other hand, executives with InterContinental Hotels--owner of budget brands Holiday Inn and Holiday Inn Express--Best Western International, and others are suggesting the recession offers an opportunity.
