Airport hotels show declining revenues

Airport hotels, more dependent than most on business-related travel, are also showing declined revenues.
 

They are down about 20 percent, says Smith Travel Research.
 

Smith classifies nearly 2,200 US hotels representing more than 300,000 rooms as “airport” locations, usually meaning they are within three miles of an airport.
 

Many airlines have been reducing capacity in an effort to control costs, which could impact airport hotels.
 

“However, if airline load factors improve as a result of capacity reductions, the impact could be minimal or even positive,” the report says.
 

Smith’s prediction for the future:
 

“We would expect airport hotel performance to improve in the back half of 2010, similar to the overall hotel industry.”
 

By David Wilkening