Wednesday, July 1, 2009
40 Jealous Whores / Around Town / Kotz / Politics / The Economy Nashville Hoteliers Are Still Taking a Beating
Posted by Pete Kotz on Wed, Jul 1, 2009 at 12:11 PM
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Here's the good news: Nashville hotels are expected to see a 12 percent drop in per room revenue this year. Okay, so that doesn't actually sound like good news -- until you compare it to a 17.5 percent drop nationwide. 
According to the Nashville Business Journal, the city's occupancy rate will drop from 62 percent last year to 56 percent this year. Which begs the question: Why does the mayor want to build a new city-owned hotel?
As the Journal notes, a new Holiday Inn Express just opened near Opryland, and a new Hilton's sprung up near Vanderbilt, already adding to the glut. Throw in a new city-owned convention center hotel, and you have the beginnings of the same economic model as the U.S. car industry: way too much inventory cuddling up to way too few buyers.
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