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10 February 2009
Hospitality top 10 thoughts to watch in 2009 | Ernst & Young
 The credit crunch, an increased focus on cost containment and the bottom line, leveraging brand recognition through the internet, globalization and green building are ranked at the top of the list. Discover which 10 trends are giving way to new order in the hospitality sector. The credit crunch, which began in the US in mid-2007, has gradually turned into a global economic crisis. While the US and many European governments are considering alternative restructuring options for their financial systems, the hospitality industry is being significantly impacted by the economic slowdown and lack of capital. The scarcity of capital has frozen the transaction market and is delaying new lodging supply. Many lenders are waiting on the sidelines or extending loans only to high-quality, cash-flowing properties in strong markets, albeit at comparatively higher interest rates, stricter loan covenants, lower loan-to-value ratios and increased debt-service coverage ratios relative to the financing terms of the real estate boom between 2004 and 2007. As an example, some lenders’ interest rates for mezzanine loans are as high as 20.0%. The majority of private equity and sovereign wealth funds, which were once viewed as alternative sources of capital, are waiting for further declines in asset prices or are investing domestically in debt instruments rather than buying assets.
 US 2009 Lodging Report | Ernst & Young
How are the global events and trends of the past year likely to shape the hospitality industry in 2009 and beyond? In this year’s report, we review the performance of lodging markets and segments thr...
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RECENT NEWS
Friday 19 March 2010 | 2009 has gone into the history books as one of the worst for the hotel industry. Revenue per average room (RevPAR) practically collapsed as travelers stayed away. Companies reined in travel expenditure and tourists stayed at home. Business is suffering against all measures and we have seen hotel stocks fall in value around the world.
Tuesday 7 April 2009 | Hotel owners and management companies are accelerating efforts to fortify cash positions in a bid to survive the current downturn and to strategically position their businesses for mid-term and long-term growth, according to a survey by Ernst & Young LLP.
Tuesday 10 February 2009 | The credit crunch, an increased focus on cost containment and the bottom line, leveraging brand recognition through the internet, globalization and green building are ranked at the top of the list. Discover which 10 trends are giving way to new order in the hospitality sector.
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