FRANKFURT, April 19 (Reuters) - Many corporate managers avoid staying at top hotels while cutting jobs or relying on government support, a Global Hyatt Corp executive told German newspaper Tagesspiegel.
The market for luxury hotels would remain depressed through 2010 and recover slowly in 2011, Hyatt Senior Vice President John Wallis was quoted as saying in a preview of an article to be published on Monday.
The privately held Chicago-based hotel chain has suffered along with publicly traded peers such as Marriott International Inc MAR.N and Starwood Hotels & Resorts Worldwide Inc HOT.N from a sharp drop in consumer spending and business travel. [ID:nN02263467]
“Many companies are cancelling reservations because managers don’t want to be seen in a luxury hotel while they are perhaps laying off thousands of people or taking advantage of state aid,” Wallis said.
He warned against room price discounts. “Offering discounts is a dangerous game. Once prices have gone bust it takes years to return to the old level.” (Reporting by Peter Starck)