Hotels were able to negotiate average corporate rate increases of approximately 5% over last year, varying more or less based on seasonality or food and beverage spending, Hanson says. However, he adds that corporate travel managers might try to recover higher rates paid in prior years by negotiating what some call a "subsidy" in 2009 that will amount to decreases or increases of no more than 2% either way.

"The corporate, contract and convention/group rates negotiated in 2007 and earlier have been a significant factor supporting average daily rates in 2008," Hanson says. Those rates represent approximately 20% of occupied room nights and almost 30% of US lodging industry revenue, he says.

Hotels will lose their leverage to negotiate higher prices next year because occupancy is expected to fall to 58.3%, the lowest level in the last two decades, says Mark Woodworth, president of Atlanta-based PKF Hospitality Research. He predicts that profit margins will fall a full percentage point to 28.5% in 2009.

"Hotels running at higher performance levels entering the downturn are better positioned to endure the weak periods ahead, but even the most talented of managers will be tested," Woodworth says. He noted that owners have certain fixed operating costs that need to be covered regardless of the decline in the number of guests.

CBRE's Lesser suggests that hotel owners attempt to challenge local tax assessments on properties that may have declined in value over the past few years. "Every dollar that is saved through a process like that goes straight to the bottom line," he says.