Worst season for hospitality on record
During one of the worst depressions on record for hotel business, most hoteliers are hoping just to break even during the month of September. Where it's obvious that some hotels will ultimately close, smaller hotels have dropped their room rates to nearly $30 per night.
Though some analysts predict that the recession is over, the average occupancy over the last 3 months has been a mere 58 percent of available rooms. Orlando-hotels have been taking a real beating during June, July and August with room rates down double-digits.
Because of Orlando's tourism-dependency, the losses are creating some real opportunity for deal-seekers vacationing in Orlando. As resort taxes fall, so doesn't some of Orange County's public projects slated for this year.
Badly needed renovations to the Citrus Bowl as well as delays to the performing-arts center planned at $425 million are among those projects that have fallen victim to hard times.
Albeit local hotel occupancy fell some 9% over the last year, steep discounts in rates has maintained an adequate level of tourism to keep hotels operational. Most economists don't believe that hotels will see a turn-around for months to come, maybe until the end of 2010.
To make matters worst, statistics reveal a mass exodus from Florida in the order of tens of thousands of people, a reversal after 60 years of growth. Demographic markers show that hundreds of thousands of multiple generations are living in households without health insurance. These factors coupled with unemployment are sending families packing in search of jobs.
With a mere 4 percent growth in 2008, new births represented the highest growth factor among 18 million inhabitants. Albeit, the growth rate has slowed, a whopping 79% of the increase in Florida was fueled by the Hispanic population.
For hoteliers, if able people have jobs, tourism will begin to flow again. Historically, the hospitality sector may take some time to bounce-back again before some growth can be sustained.
Though some analysts predict that the recession is over, the average occupancy over the last 3 months has been a mere 58 percent of available rooms. Orlando-hotels have been taking a real beating during June, July and August with room rates down double-digits.
Because of Orlando's tourism-dependency, the losses are creating some real opportunity for deal-seekers vacationing in Orlando. As resort taxes fall, so doesn't some of Orange County's public projects slated for this year.
Badly needed renovations to the Citrus Bowl as well as delays to the performing-arts center planned at $425 million are among those projects that have fallen victim to hard times.
Albeit local hotel occupancy fell some 9% over the last year, steep discounts in rates has maintained an adequate level of tourism to keep hotels operational. Most economists don't believe that hotels will see a turn-around for months to come, maybe until the end of 2010.
To make matters worst, statistics reveal a mass exodus from Florida in the order of tens of thousands of people, a reversal after 60 years of growth. Demographic markers show that hundreds of thousands of multiple generations are living in households without health insurance. These factors coupled with unemployment are sending families packing in search of jobs.
With a mere 4 percent growth in 2008, new births represented the highest growth factor among 18 million inhabitants. Albeit, the growth rate has slowed, a whopping 79% of the increase in Florida was fueled by the Hispanic population.
For hoteliers, if able people have jobs, tourism will begin to flow again. Historically, the hospitality sector may take some time to bounce-back again before some growth can be sustained.
posted by michael at
7:42 AM
