Better Accommodations

The nation's lodging industry, beset by a host of economic problems following Sept. 11, 2001, is staging a comeback. The hotel market is making slow but steady strides toward recovery and is expected to register a strong rebound by 2005 and into 2006, according to industry sources. The health of the lodging industry is closely linked to business travel, and signs are also encouraging there. A sustained recovery in the equity markets and in the corporate sector in the coming quarters is precisely what the lodging industry needs for business travel to rebound strongly. Hotel operators have been aided financially by the low-interest-rate environment, which has enabled them to refinance their debt, reducing pressures on cash flow. It's clear the nation's lodging industry is making significant progress toward recovery. Yet the sector is still handicapped by slow business travel and the impact of rate discounts made in an effort to attract more bookings.