It's Official: Hotels Suffer Steep Fall

The average U.S. hotel suffered a 19.4 percent decline in profits in 2001, according to the 2002 edition of Trends in the Hotel Industry-USA, which is published by PKF Consulting and the Hospitality Research Group. The downturn represents the first decline in hotel profitability since 1991, and the largest single-year drop since 1938. The firm projects a continued decline in hotel revenues in 2002.