| November 4, 2009 | News for hotel and lodging professionals |
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- CityCenter opening creates concerns about room rates
MGM Mirage CityCenter will open in December, but some observers are raising concerns about how the project will affect hotel room rates. Rates have already declined during the economic downturn, and the project will add nearly 6,000 rooms to the market. Meanwhile, the recession has forced developers of other Las Vegas projects to postpone or halt their plans. Reuters
(11/3)
, MSNBC
(11/3)
      
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| Business Update |  | |
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- Florida sues Expedia, Orbitz over taxes
Florida has become the latest state to file suit against online travel reservation companies, claiming the companies failed to pay the state millions of dollars in taxes on hotel room rentals. The state's attorney general named Expedia and Orbitz in a lawsuit filed on Tuesday, accusing the companies of pocketing some of the taxes as profit. Expedia said in a statement that the lawsuit is "meritless and does nothing but detract from our efforts to bring visitors to Florida." Google/The Associated Press
(11/3)
- Hyatt: Market shows signs of stabilization
Although pressure on average room rates will likely continue, occupancy rates are stabilizing, and that trend should continue throughout the remainder of the year, Hyatt Hotels Corp. told potential investors this week. The company reports that its revenue per available room declined 22% in the first nine months of the year and that overall revenue fell 17% to $2.44 billion for the nine months ending Sept. 30. San Jose Mercury News (Calif.)
(11/2)
| Market Trends | | |
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- Nightclub owner hits obstacles in hotel market
Though Sam Nazarian has found fame and success as the owner of some of Los Angeles' hottest nightclubs, his efforts to find the same success with high-end hotels have hit plenty of obstacles. Nazarian's SLS chain has purchased three properties -- the former Le Meridien in Beverly Hills, the Sahara casino-hotel in Las Vegas and the 119-room former Ritz Plaza hotel in Miami's South Beach -- and the lodging slump has caused big delays in renovations and plans for the properties. The Wall Street Journal
(11/4)
- Tight budgets rule out spas for conventioneers
With attendance at conventions down by as much as 30%, those who do show up typically don't have the budget or the time to take advantage of spas and other amenities that hotels make available for them, according to Joseph A. McInerney, chief executive of the American Hotel & Lodging Association. "People aren't taking as much advantage of the facilities as they have in the past," he said. NJBIZ (New Jersey)
(11/2)
- Loss of chain affiliation may send guests packing
When a hotel loses its chain affiliation, it may wind up losing loyal customers -- whose allegiance to the chain's loyalty program is greater than their preference for the hotel -- as well. Readers are asked to chime in on experiences in which they were forced to find a different hotel when their usual hotel lost its affiliation. USA TODAY/Hotel Check-In blog
(11/3)
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- China approves Disney's plan for Shanghai theme park
The Chinese government has approved Walt Disney Co.'s plan to build a $3.6 billion theme park in Shanghai. The Chinese park will be the company's fourth outside the U.S. Disney is now working with its partners in China to form an operation and construction agreement. Bloomberg
(11/4)
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