Another Biggest Drop Since the Depression
Today, another biggest drop since the Great Depression… and this time the barometer of economic weakness comes in the form of hotel rates.
From the San Francisco Chronicle:
“San Francisco’s year over year room price drop was worse than the Northern California average decline of 13 percent, but consistent with other big tourist cities on the nation’s coasts, according to Tom Callahan, CEO of PKF Consulting.
“Callahan said the steep declines from a year ago are the worst since his company started tracking hotel numbers in 1933.
“‘Everyone is in the tank,’ Callahan said. ‘But we’re also pretty close to bouncing along the bottom.’
“Callahan predicted that tourism would likely start to improve in the middle or second half of 2010 as consumer confidence improved.
“The ailing hospitality industry is bad for hotel owners as well as city coffers.”
The piece also notes that 15 San Francisco hotel owners have defaulted on loans, with the Four Seasons among them. The number falls in line with 12 hotel defaults in New York City and 20 in San Diego.
You can read more of the details in the San Francisco Chronicle’s coverage of the biggest hotel rate drops since the Depression.