NEW YORK – As consumer spending withers and corporations cut business travel, the economic outlook for the hotel industry is murky at best, said the chief executive of Global Hyatt Corp in an interview on Thursday.
CEO Mark Hoplamazian, who heads the privately held Chicago-based hotel company, said he would not count on an economic recovery any time in 2009.
“Our hope or belief is that it will be some time in 2010,” Hoplamazian said.
Hyatt, which has 370 hotels and resorts worldwide, has not been immune to the malaise that has spread throughout the industry amid a sharp decline in the global economy. The company’s revenue per available room, an industry performance measure, has fallen by double digits, Hoplamazian said.
As corporations scale back, he said he has seen a notable decline in food and beverage revenue.