Can Hotels Survive the Convention Crisis?
As hoteliers put to rest a year of upheaval, uncertainty, and financial strain, the predictions are already in for 2010. A PKF Hospitality Research study shows that despite the industry facing an uphill battle, occupancy rates are expected to rise 0.4 percent in 2010. Okay, not great news – occupancy levels fell an average of 8.9 percent in 2009. But the ever-so-slight increase means one thing for anxious hoteliers – the modest increase is the first year-over-year increase in the last eight quarters.
When your insurance carrier and your parent company are at odds, what do you do? That’s the issue facing Best Western Franchise owners to the news that the company is re-evaluating its relationships with franchisees based on their current insurance coverage. At issue is the standard assault, battery, and molestation exclusions that hotel insurance carriers have on their policies. Understandably, the company is requiring the coverage to minimize loss exposure.
As mentioned previously, a number of hoteliers are facing nonrenewal notices and scrambling to locate acceptable coverage. A major carrier has decided to pull out of the hotel/motel business, leaving thousands of insureds searching for another carrier. Agencies handling these policies are forced to halt any new business marketing as they themselves go on a search for a credible, stable replacement for their policyholders’ business insurance.
Look out, hoteliers – a new trend is emerging in the hotel industry. A Singapore-based hotel has just launched its women-only floor of hotel rooms. The rooms, housed behind security doors with limited access, are stocked to the rafters with girly accoutrements. Luxury hotels like the 
‘Tis the season – not only for holidays, but for nonrenewal notices. At least one major hotel insurance carrier has sent out its nonrenewal notices, meaning that some of you reading this blog will be shopping for coverage. If you’re not careful, you could find yourself buying what appears to be a great deal, only to find that on the next renewal, the deal evaporates or worse, the company dumps the book of business, leaving you searching once more for hotel insurance coverage.