31 January 2010
Hotel Lawyer: A new realism settles on the hotel industry. We’ve already given up 2010 and 2011 won’t be that much better . . . then a long, slow “jobless recovery.”
“Realism” was the defining word for the ALIS conference held in San Diego on January 25-27, 2010. ALIS attendance was roughly half or less of last year, and the experts officially declared 2009 one of the worst years for the hospitality industry. They have already thrown in the towel on the industry for 2010, and look to an anemic 2011, with double digit growth in RevPAR after that . . . but we are so far down the hole now, that even double digit RevPAR growth will take years to reclaim the levels enjoyed in 2005-2007.
So what does this portend for lenders? And what is the smart money doing now?