SAN DIEGO – Luxury hotels, which were hard hit by the global economic meltdown, are seeing a rebound in demand but group business is still lagging, experts said at the opening session of the Americas Lodging Investment Summit on Monday.
"As the recovery begins to transform, it’s going to be top down," said Mark Lomanno, president of hotel research firm STR.
While Lomanno and others reviewed what was one of the worst years in hotel industry history, the general consensus here is that recovery has begun.
"The bad news has begun to get better," said Mark Woodworth, president of research firm PKF Hospitality.
Still, rates are expected to remain low throughout 2010 and group business – hit with a double whammy from the recession and backlash against extravagant corporate spending – is not yet recovering.
"I think the pain is yet to come," said Mike Shannon, president of private equity firm KSL Capital Partners. "People who canceled have not rebooked yet."
Luxury hotels, however, which were hit harder than any other hotel category, saw demand increases of 5% to 8% in each of the last six months at U.S. properties, Lomanno said.
