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The lodging industry is poised to experience one of the worst years on record as hotels' ability to meet their debt-service obligation, as well as the underlying value of their collateral, will be severely tested in 2009, according to PKF Hospitality Research (PKF-HR), Atlanta.
PKF-HR predicts that the number of full-service U.S. hotels lacking the cash flow needed to pay their debt will increase by 25 percent in 2009, while property values will likely decrease another 20.1 percent following a 14.1 percent decline in 2008.
