Front Desk

• Extended Stay Hotels in talks for lenders to take it over
  Extended Stay Hotels is reportedly in talks to turn the chain over to its lenders. The company has no major debt expirations due soon, but its cash flow is said to be plummeting as demand falls, according to this article. The Wall Street Journal (tiered subscription model) (12/8)

Business Update

• Unemployment figures particularly bad for hotels, casinos
  Hotels and casinos have been hit hard by unemployment, with the lodging industry losing 36,600 jobs in November alone and the amusements, recreation and gambling sector losing 13,100 workers. Both sectors represent areas that have been hurt as consumers cut back on discretionary spending, with occupancy rates at U.S. hotels dropping by 6.5% in October, compared with a year earlier, and gaming revenue down 4.6% in the third quarter. CNNMoney.com/The Associated Press (12/5)

• Survey: Travel demand will continue, especially among wealthy
  Travel-service providers who focus on affluent travelers will likely have an easier time than those who cater to other travelers, according to a survey co-written by the Travel Industry Association and Ypartnership. "Many travel-service suppliers are questioning if there is sufficient life left in the marketplace to continue to invest in advertising and related efforts given the recent turmoil in the financial markets," said Peter C. Yesawhich, chairman and CEO of Ypartnership. "The answer is a definitive yes based on our tracking of prevailing customer sentiment, but increasingly from a more upscale demographic group." Travel Trade (12/5)

• Cities get creative to try to lure convention business
  With convention business dropping along with the rest of the economy, some cities are taking steps to create incentives and make their convention offerings known to meeting planners. New Orleans, for instance, is offering free space at the Morial Convention Center, and Tucson, Ariz., says it will offer credits of up to $20,000 against meeting costs. Chicago Tribune (12/8)

Market Trends

• Hilton finds success with work-from-home program
  Hilton Hotels has been able to boost productivity and significantly reduce expenses by asking reservation agents to work from home. Its 18-month-old Hilton@Home program has helped reduce turnover, and it has been so successful that the number of agents working from home could increase from the current 900 to 1,900 by the end of 2009. Hotel Interactive (12/5)

• Poll: Do you work from home?
  Look for the results from today's poll in the Editor's Note section of Wednesday's AH&LA SmartBrief and in AH&LA's e-Newsletter.

	Yes
	No
	Occasionally
	Never

• Ski resorts hope deals will help travelers hit the slopes
  Ski resorts around the country are offering bargains in order to make it easier for travelers to visit during otherwise tough times. Ski areas in New York are offering free skiing for fourth-graders when accompanied by paying adults, and Vail Resorts in Colorado is offering a $30 dining credit per child per day for its on-mountain restaurants and $15 dining vouchers for participating resorts. NYTimes.com (12/7)

• Hotels in Vermont embrace green
  Hotels across Vermont are increasingly going green and getting certification from the Green Hotels in the Green Mountain State program. Hotels including the Trapp Family Lodge and The Woodstocker Inn have been composting, recycling and taking other actions to maintain their certification. The Boston Globe (free registration) (12/7)

• Club Med continues transformation quest despite downturn
  Several years ago, Club Mediterranee started transforming its reputation and brand from midmarket to luxury. Now that the French resort operator is nearing the end of its restructuring, its strategic plan could be hurt by the economic downturn. Still, Chairman and CEO Henri Giscard D'Estaing is sticking with the plan. The Wall Street Journal (tiered subscription model) (12/8)

Hot Topics

Top five news stories selected by AH&LA SmartBrief readers in the past week.

• 3 investors form group to purchase hotels (The Commercial Appeal (Memphis, Tenn.))

• Strategies can help keep hotel profitable during economic slump (Hospitality Net)

• Las Vegas hotels slash prices as downturn hits the Strip (FoxNews.com)

• Smaller hotel sales doing well despite downturn (GlobeSt.com)

• Marriott exec Jenkins launches hotel-development firm (American City Business Journals)

• Results based on number of times each story was clicked by readers.

Best Practices

• Disaster preparedness necessary at high-profile hotels
  India's hospitality industry should adopt a disaster-management plan, this author argues in 4Hoteliers. History shows that other cities have been able to bounce back after terrorist attacks such as those in Mumbai, and measures such as scanning guests' baggage at five-star hotels could help boost security, the author argues. 4Hoteliers (12/8)

AH&LA News

• Find easy and affordable green programs and tactics
  Your prime resource for hospitality-minded green initiatives, AH&LA's Green Resource Center offers information on government-funded eco-organizations spanning energy, water and waste, as well as best practices from hoteliers, cost-saving tips, energy facts and a host of other resources to help your property become more environmentally friendly without breaking the bank. This section is updated frequently, so check back often.

• AH&LA members save $450 at premier HR event
  Join HR in Hospitality™ March 17 to 19 at Disney's Contemporary Resort in Florida. Hear from Hilton CEO Christopher Nassetta and choose from more than 25 sessions across five industry tracks, including the new HR Best Practices. Plus, comparison shop and network with your peers in the Expo Hall. Contact AH&LA member services at membership@ahla.com for your promotional code.

SmartQuote

What great changes have not been ambitious?" --Melinda Gates, co-founder of Bill & Melinda Gates Foundation