Hotels Uncertain About Future, Services Affected

Businesses and individuals have cut back the travels and vacations, which in turn has made the hotels to struggle at lot. While many hotels have struggled, some are expected to be forced into foreclosure or bankruptcy over the next few months. If a hotel is experiencing financial difficulties, guests could be affected. "Hotels are doing things like closing the restaurant two nights a week or having the nightclub only open one or two nights a week," said Molly Vincent, vice president of a Las Vegas destination and event management company.

According to a story published in NY Times "Jim Butler, a hotel industry lawyer, said those who manage distressed hotel loans have told him that their workloads have jumped tenfold in recent months.

“Things seem to be accelerating,” Mr. Butler said, and predicted that before the recession is over, the number of hotels in bankruptcy or foreclosure could rise above the 2,000 or so reached in the industry’s last big downturn in the 1990s."