The economy hasn't been good for most of us, and that includes hotels. Hotels are going into foreclosure at an escalating rate as occupancies and revenues decline. From the article:
And it could get worse next year. An oversupply of guestrooms could keep room rates low, making 2010 a high-risk year for hotel foreclosures. Demand should gain 1.6%, according to hotel research firm STR Global, but average room rates are likely to fall 3.4%. The result would be the greatest spread between demand and rates in the 20 years STR Global has been collecting data.
But what does it all mean for meetings? My colleague Dave Kovaleski did a good job of outlining the issues, including declining service levels and cost-cutting where you may not want it. Do your due diligence, and get some language into your contract that will protect you from any unwanted fallout (read the article for more tips. It's pretty useful stuff!)