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Hoteliers Shift Strategies in Light of Economic Troubles

Many plans are modified or dropped, though prices may stay the same, and no development could keep market stable.

By Maria Wood | Updated on October 02, 2008

In light of the recent upheavals on Wall Street and the ongoing credit crisis, a group of lodging executives speaking at the opening session that kicked off the second day of the Lodging Conference 2008 said they have modified their firms’ strategies in light of today’s environment. Ted Darnall, COO at HEI Hotels & Resorts, and Monty Bennett, president and CEO of Ashford Hospitality Trust Inc., said they are carefully monitoring their capital expenditures as it pertains to asset improvements. Both executives participated in a panel entitled, “The Great Hotel Owners Debate.”

For instance, Darnell said that hoteliers used to have easy access to debt to fund renovations. “That period is gone for a while,” he stated, adding that his firm now focuses only on those upgrades that will bring in customers.

“Capital is dear,” Bennett said. He noted that while Ashford still spends above its capital reserve requirements to keep its hotels up to date, it has cut back on discretionary expenditures, such as adding a spa to a property.

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