National Director of Ernst & Young's Hospitality Services Group, Chase Burritt says times are looking tough. "The industry finds itself in a great challenge. Most of our clients are projecting significant revenue declines and cost overruns. The combination of the economic slowdown and tragic events of September 11 have led to the worst occupancy rates we've seen in ten years," said Burritt.
    
Burritt expects business travel to be the first area to recover. One of the bigger losses during the month of September was the loss of conventions that canceled and did not reschedule. Conventions should be going ahead on schedule for the rest of the year and with and business travel should slowly resume. Burritt also says that many hotel operators may have to offer lower room rates and the Average Daily Rate (ADR) across the country will likely fall to $85 by the end of the year. (ADR for 2001 was originally forecasted at $88.)
    
Ernst & Young's Hospitality Services Group of E&Y is one of the largest hospitality consulting practices in the world. As industry experts for more than 25 years, E&Y provides timely research and analysis of worldwide industry movements, along with a full range of related client services covering lodging, tourism, finance, operations and a coordinated delivery of advisory, tax and audit solutions for markets in North America, Europe and Asia.