Terrible Timing for a Hotel Boom

Workers painting a room at a Hyatt Place hotel in Ridgeland, Miss. Hyatt has cut the number of hotels it plans to open this year. James Patterson for The New York Times ABHA BHATTARAI and FRED A. BERNSTEIN A record number of hotels are opening this year, and the timing could not be worse. High gasoline prices and a slumping economy have put a damper on leisure and business travel. Airlines have been cutting service and raising fares. While new hotels open, occupancy rates are falling across much of the United States. “We’re really on the verge,” said Charles Snyder of Smith Travel Research, a firm based in Hendersonville, Tenn. “It hasn’t turned into a hotel recession just yet, but we’re certainly keeping an eye on the economy.” Until recently, the industry was in the midst of a major boom, and it was during those good times... [read full story]