Sunday, November 16, 2008

Hotels: rapid deterioration "across the board"

by Bill McBride on 11/16/2008 10:30:00 PM

From the WSJ: LaSalle Orders 20% Cut in Hotel Staffing

"At this time, we do not believe that we can provide a credible outlook for the remainder of the year as expected performance at our hotels continues to decline," [LaSalle Chief Financial Officer Hans Weger] said in statement ... noting the rapid deterioration was seen in more than just business cuts.

"We've seen it across the board; it's across cities, consumers, groups and corporate."
The article also mentions the "AIG effect" of companies cancelling events because they "don't want to look like AIG".

However the more important story is the rapid deterioration in all hotel segments: "across cities, consumers, groups and corporate".