Golden age for U.S. hotels expected

Atlanta. According to survey results, the average U.S. hotel suffered a 35.4 decline in profits in 2009. This is the greatest annual fall-off in the bottom line since tracking the industry in the 1930s.

Atlanta. Despite the decline in 2007 occupancy, U.S. hoteliers remained optimistic when preparing their budgets for the following year. Hotel management forecast increased in occupancy, ADR, RevPAR, and profits for 2008. When preparing their 2008 budgets, did hotel managers miss the early warning signs observed in 2007, or did they stubbornly follow the historical practice of not budgeting for performance less than the prior year?