From: http://pacific.bizjournals.com/pacific/business_travel/story/biz/7401.html

October 19, 2009

"Debts loom as Hawaii hotels cut rates deeper"

Pacific Business News (Honolulu) - by Chad Blair Pacific Business News

Deep discounting of hotel rooms is helping occupancy during the visitor slump.

But the rate cuts, averaging 16 percent from a year ago, mean some hotels aren’t making enough money to cover their debt.

For a hotel with guests in 300 rooms, that’s potentially $13,800 less per night than a year ago, or $414,000 a month.

Declining revenue has already led some properties to default on mortgages and to be foreclosed upon or to be taken over by the lender. That’s happened to at least seven big hotels, including the Big Island’s Fairmont Orchid Hawaii and the Sheraton Keauhou Bay Resort, the Maui Prince Resort and the Ritz-Carlton at Kapalua, the Ilikai and the former W hotel in Waikiki, and the Hilton Kauai Beach Resort...>>>Article continued here>>>