I was having lunch with a hotel executive the other day and he said. “We have hit rock bottom in the hotel business!”
The economy has really taken its toll on the Hotel business especially the high end area. Perception & budgets are keeping people away.
Fontainebleau Las Vegas LLC has found itself flat out of cash. The 3,900-room resort, which is 70 percent complete and was set to open in October, filed for Chapter 11 bankruptcy protection today.
2) The St. Regis Monarch Beach which sadly is the emblem of corporate excess and greed last October and is infamous as the hotel where American International Group (AIG) sponsored a luxury retreat just days after accepting a federal bailout, has been scheduled for a foreclosure auction.
3) Four Seasons Aviara craziness lately where a dispute between the owners, a group of investors and its Four Seasons management has been a little to out in the open. I have seen management companies come and go at Hotels but this one really has become nasty. Both sides are very angry and we will see how it all pans out. I guess the resort wasn’t making enough money so the owners wanted Four Seasons out and some new management in. The Four Seasons didnt want to go. Not the best PR for an already bad situation all around.
Here is the Press release the owners sent out.
All these different hotel troubles have come as the recession and credit crunch have hammered the hotel industry, depressing room rates and occupancy levels. Hotels which have very rich travelers and the high-end corporate retreat business, have obviously seen huge declines in revenues.
Not a good situation.