Strategic Hotels Chief Says Corporate Cutbacks to Trim Bookings
Bloomberg reports: Strategic Hotels & Resorts Inc., owner of the Four Seasons in Washington, will probably see a decline in luxury bookings through this year as companies cut travel to avoid public reproach, Chief Executive Officer Laurence Geller said.
Criticism of corporate spending "had a tremendous effect on us for probably three immediate months with a lingering effect of six more months," Geller said in an interview. "It was almost as if something turned the spigot off."
President Barack Obama said in February that companies receiving federal bailout money "can’t go take a trip to Las Vegas or go down to the Super Bowl on the taxpayers' dime." U.S. Representative Barney Frank and the House Financial Services Committee criticized Northern Trust Corp. for organizing a golf tournament in Beverly Hills, Calif. The bank received and repaid $1.6 billion in federal assistance.
The value of hotel properties in default or foreclosure almost doubled to $17.3 billion in the second quarter through June 24 from $9 billion at the end of the first quarter, data compiled by Real Capital Analytics Inc. show. The New York-based research firm, which began tracking distressed commercial property in November, expects hotel defaults to increase by as much as $2 billion this quarter, said analyst Jessica Ruderman.
View the full article on Bloomberg: Strategic Hotels Chief Says Corporate Cutbacks to Trim Bookings
Posted by: Matthew Stone