Lower Rates Mean Lower Income

Aloha Kakou:

The current round of rate cutting by hotels means that US hotel's net operating income will drop by 37.8% this year, the worst drop since the 1930's.

RevPAR (Revenue Per Available Room) is expected to decline 18.7%, according to this article in Travel Weekly.

The decline in pricing is more dramatic than it's ever been," says Smith Travel Research president Mark Lomanno.