US hotel guests tighten their belts

Hotels in the USA will make less profit this year than they did last year because American guests are eating and drinking less and using mobile telephones more. A study, published by Atlanta-based Hospitality Research Group (HRG), an affiliate of PKF Consulting, predicts the average hotel in the States will suffer a 5.6% decline in operating profits this year. Last year the average hotel in America increased its operating profits by 10.1% The study blames the predicted fall on the economic slowdown in the USA. Fewer American businessmen and women are travelling and those that do are choosing cheaper hotels and spending less during their stays. Occupancies are expected to fall by 1.2% on last year, while the average room rate will increase marginally by 2.4%. The money hotels make from food, drinks and telephones is expected to fall by an average of 4.9%. Robert Mandelbaum, director of research information services for HRG, said: "When the traveller's budget gets tight, not only can they spend less on bedrooms, but less on entertainment and dining. "We are also starting to see an increased use of cellphones, which will further damage hotel profits."