»»Analysts Predict Worst Occupancy Rate for U.S. Hotels in 2009
As the National Business Travel Association (NBTA) is predicting business travel will continue to expand next year — though at a slower pace, hotel forecasters suggest 2009 will mark for U.S. hotels the worst occupancy rate over the last 30 years.
NBTA says the number of business trips in 2009 will increase at a slower pace than the annual growth from 2004 through 2007.
However, hotel industry analysts predict the demand for hotels in the U.S. will fall by 2 percent in 2009. That, coupled with an increase in supply, is expected to reduce room occupancy levels to 58.6 percent.
With economy slowdown, companies reducing nonessential travel and re-thinking their travel policies, hotel companies could also suffer a pressure on the corporate rates they charge for 2009.
Companies may feel rates negotiated when the economy was stronger, are too much in times of recession.
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