“The unfortunate reality of today’s marketplace,” says Hotels magazine Editor-in-Chief Jeff Weinstein, is hotels are “more focused on saving cash than delivering the best service.”
Hit by a declining demand for rooms, low room rates and plummeting revenue, hotel companies have laid off hundreds of thousands of employees and are struggling to maintain quality. A record number of hotels are defaulting on mortgage payments. Hundreds have been taken over in foreclosures, and some have closed or are about to.
“Because of the recession and the credit bust,” says Ed Watkins, editor of the trade publication Lodging Hospitality, “it’s the worst downturn in decades — perhaps ever.”