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The next bailout: Hotels and Travel Resorts

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posted on Aug, 12 2009 @ 02:48 AM

"We can't see any sign of recovery and it could be two years before we get back to levels of travel we were at before," Chief Executive Andrew Cosslett told a results briefing on Tuesday.

Hotels and travel resorts are showing a rapid decline this travel season. With possible failures on the horizon for many hotel chains I anticipate a possible new approval for TARP.

"This is one of the toughest years on record with little respite and it will continue to be challenging this year and into next," Cosslett said.

In Oklahoma the hotel industry was being held up by a thriving "Oil Field". The oil field has now collapsed. In our area of Oklahoma alone as much as 75% of people that were employed by oil field companies have been laid off. Alot of the oil field services relied on hotels for the somtimes long stays that specialty oil field companies that move from state to state and city to city, for room an board.

"InterContinental says that occupancy has shown signs of stabilization but room rates continue to decline in a very competitive market," said analyst Ian Rennardson at house broker Bank of America/Merrill Lynch.

Hotels in our area are now desperate for business, offering some of the lowest rates ever for rooms. Eventually they will fail.

CNN Money source.

How convenient will it be for the government to have pre-built housing for the populace, in the event of further economic down turns. I for one do not see the improvement that makes me think that we are even close to seeing the worst of this crash.

Though nothing is certain for sure, I still see the signs for another bail out.

posted on Aug, 12 2009 @ 03:30 AM
I believe we will see bankruptcy filings for hotels and motels this year. It seems like there have not been very many bankruptcy filings this year, and there should have been more.

I have been wondering if there is an unspoken moratorium on filing for bankruptcy, with the exception of car companies. If companies don't actually file for bankruptcy, it seems like the economy is better than it really is.

Also, all of those unused shipping containers that China sent here full, but were never sent back will make wonderful homes for the unemployed. There are the empty Circuit City stores and also the ghost malls. Combined with all of the empty houses and soon to be bankrupt businesses, there will be plenty of empty spaces to reside in.

I can not imagine the American people tolerating another bailout, but nowdays anything goes, so it would not suprise me.

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