Hotel Properties Fall Prey to Foreclosures

The US economy is on a tailspin what with unemployment reigning high. As people lose jobs, they are faltering on mortgage payments. Hence, foreclosures have become common. Now hotel properties are falling prey to foreclosures as well. They are losing out on revenue as well.

Take, for instance, Pompano Beach hotelier Richard Manzelli. He feels he is lucky that his motel is operating at least one-third of capacity in the weekdays. This is in part due to the monthly rentals that he has offered to people on temp jobs.

In fact, there are many hoteliers in South Florida who are faring worse than last September. Some say this has been the worst month ever. Manzelli says that he has been able to boost occupancy by giving heavy discounts. He has even rented out his motels. Most of his guests are those who have found his modest lodging a better option during the downturn than the high-priced lodging.

The Ronny Dee Resort Motel does not have any bar or restaurant. The prices too are negotiable. Customers can avail of rooms at prices that are much below the published rates of $68 per night. Manzelli says that business is no doubt slow, yet he is trying to hold fort.

The news is even worse in other areas in South Florida. Revenues of some hotels have plunged by 20 per cent if not more. There are other operators in Broward County who are calling September the worst month for tourism. One of the reasons could be that even condominium associations are renting out rooms just to collect fees. That is increasing competition for the hotel operators who are not getting guests to occupy the empty rooms.

Other operators are saying that they are depending on their savings in order to survive. They are literally struggling to pay their insurance and property tax. Both have increased by leaps and bounds in the recent years.

The large hotels are also bearing the brunt of recession. As people lose jobs, the hotels have to give large discounts in order to pump up sales. The Westin Diplomat Resort and Spa in Hollywood has got packages for tourists. This will help offset the plunge in conventional business. There are spa deals and free nights amongst the promotions. The hotel also offers discount coupons on spa treatments. There are free yoga classes as well.

Hoteliers hope to pump up sales this way.

Related Posts

• Foreclosure Ballooning Up
• Foreclosures Are Leading to a Shortage of Affordable Housing
• Hundreds Attend Stockton Workshop On Foreclosures
• New York City Group Ready To Tackle Foreclosures
• Mounting foreclosures in Massachusetts -Who is to be blamed?