For hotels, bankruptcies looming

by Tom Johansmeyer on

The financial crisis isn’t just a problem for the residential market – hotels are getting slammed. So are cruise lines, and we all know about the airline industry’s unending woes. The travel industry in the United States is steeling itself for a wave of foreclosures and bankruptcies.

So far, the hospitality business hasn’t been hit hard, certainly not to the extent that the residential real estate market has. But, Los Angeles hotel attorney Jim Butler was quoted in USA Today as saying that the bubble is growing, even if “it hasn’t burst yet.”

Occupancy rates, and revenue, consequently, are expected to plunge this year. We all know that. If you’ve noticed the wave of travel deals that we’ve been running here at Gadling, it’s not hard to do the math. This translates directly to their ability to meet mortgage obligations.

According to Mark Woodworth of PKF Hospitality Research, 36 percent of full-service hotels in the United States won’t have the cash flow to pay their mortgages this year – compared to 21 percent in 2008.

Ouch.

So, should you adjust your vacation plans this year? How do you avoid hotels that are in financial trouble?

The good news is that a foreclosure usually won’t shut a hotel down. Closing the property means closing any possibility of revenue, and creditors want cash more than the building. But, cuts will be common, from room service hours to staff at the front desk. You’ll pay less, and you’ll get less for your dollar. But, at least you’ll still be able to get a room.

Still, if you’re sensitive to the risk of losing your stay, try to avoid newer hotels. They are more likely to struggle, as they don’t have the brand recognition and repeat guests that benefit established properties. For the most part, though it should be business as usual, though “usual” might be a bit slimmer than you remember.

TARP Travel at Taj Campton

by Tom Johansmeyer on

The life of a business traveler is nothing short of miserable (trust me; I did it for about five years). We look for as few things to go wrong as possible, and when things cut our way (which is rarely), the experience is nothing short of thrilling. The Campton Place Taj Hotel in San Francisco is finally treating the road warrior well.

This is strange. Most airlines and hotels really don’t give a shit about business travelers. They know that corporate travel agents and rate agreements lock us into certain airlines and hotels. Our plans tend to be inflexible, unlike recreational travelers. We often spend more money for less service. We know it, and there’s nothing we can do about it.

Campton Place is willing to pretend, however, that they need our business. And, I couldn’t be happier.

In order to earn your travel dollar, Campton Place is offering:

• Welcome drink on arrival at Bistro & Bar
• Daily breakfast at the acclaimed Campton Place Restaurant
• High Speed Internet access (both Wi-Fi and Hardwired)
• One suit pressing complimentary
• Complimentary in-room Espresso machine / Tea maker
• Daily Wall Street Journal / New York Times / International Business Newspaper
• Complimentary use of in-house facilities (Business Center, Fitness Center, Concierge)
• Complimentary house car service in the mornings based on availability

As long as you stay for a minimum of two nights, rates start at $259.

Ladies Only Floor in Times Square hotel

by Annie Scott on

The Premier Hotel in New York City’s Times Square has a fun new amentiy — if you’re a girl and you wanna have fun. It’s the Ladies Only Floor!

The exclusive Premier Hotel, sister of the Millennium Broadway, which has been host to guests such as Jordan Sparks, Mario Lopez, and even Barbara Walters, has dedicated one of their floors — seven rooms — to the ladies.

“The Premier Hotel’s Ladies Only Floor is an exclusive floor accessible through elevator key-card access only, and offers special amenities: luxurious LATHER bath products including a loofa and bath salts, a hair straighter, curling iron, and all other girl bathroom essentials you wont find in ordinary hotel rooms, O, The Oprah Magazine, Self and Cosmopolitan magazines and the best part, an in-room yoga mat!”

For a bachelorette weekend or other occasion, you can even book the whole floor! Staying on the Ladies Only Floor also grants guests access to the Premier Hotel’s private lounge. But if you pick up a man there, you’re gonna have to go to his room. Just sayin. No boys allowed.

Now through March, if you cite the “25% Off Premier Promotion,” if you book one room one night, you get 25% your second room or second night on the Ladies Only Floor. Rates start at $299/night.

Your next luxury vacation – on an oil rig?

by Scott Carmichael on

Picture this – instead of taking a bus to your next hotel, you grab a boat and sail out to a remote oil rig in the gulf of Mexico. On board the platform you’ll find all the amenities you’d expect from a luxury resort, including a spa and several swimming pools.

This may sound like something out of a James Bond movie, but the concept is actually not that far from becoming reality.

The brains behind the idea come from Morris Architects, a design firm with offices in Houston, Los Angeles and Orlando who won an international hospitality award with the concept.

There are currently just under 4000 platforms in the gulf of Mexico, varying from tiny facilities to massive concrete structures. Sooner or later the oil and gas in their field will go dry, and the normal solution is to blow the thing up and let it sink. By converting some of the platforms to hotel resorts, the impact on the environment could be greatly reduced.

That said – I’m not sure I’d feel entirely comfortable in the gulf of Mexico during hurricane season. Despite being built to withstand pretty bad weather, the thought of being stuck in my pre-fabricated oil rig room waiting for a category 3 hurricane to move away is a tad unnerving.

Morris Architects, via Curbed LA

South Africa on the Cheap

by Kraig Becker on

Earlier this week we learned how 2009 is shaping up to be the most affordable year to visit Africa ever and now it seems the New York Times agrees, saying that Cape Town has plenty of bargains to offer travelers willing to make the trip.

Cape Town, South Africa is amongst the more unique and interesting cities in the world. The city of 3.5 million people is a thriving modern metropolis, surrounded by some outstanding natural wonders, with amazing beaches, rolling hills, and sheer rocky cliffs making a dramatic backdrop along the city’s horizon. The region is also known for some of the best wines anywhere in the world, and of course, you can’t go to South Africa without taking in a safari.

The impact of the global economic condition on the South African currency is one of the major reasons it is now a more affordable place to visit. The value of the rand versus the American dollar is at its lowest point in more than five years, and inflation has caused prices to go up when paying in rands but down when using dollars, resulting in some excellent deals on hotels and meals.

The article recommends some of the better places to stay and eat, as well as what to see and do while in Cape Town. But the Times also has an excellent travel guide with even more great suggestions. The city is a great mix of culture and cuisine, with access to plenty of nearby outdoor adventures as well.

With the cheap airfares to Africa, and the strong dollar compared to the local currency, we’re all running out of excuses as to why we shouldn’t go!