That 2009 wasn’t the best of years for the hotel industry is an understatement. According to at least one published report, it was the worst since 1932 in terms of revenue decline. And the expenses are still there, if not mounting. The largest price tag to hotels – labor costs. They take up nearly 33 percent of revenue and nearly 46 percent of operating costs.

The good news is labor costs are arguably some of the easiest expenses to control. That is, until the emergence of national health care reform.  While the legislation is aimed at reducing the rate of inflation within the health care system, the costs of bringing more employees under the health care umbrella could be significant.

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As oil from the Gulf of Mexico’s spill inched toward land, hotels along the Gulf became increasingly nervous. By the beginning of June, hotels were already reporting higher cancellation rates and more vacancies during peak season than ever. Amid increasing media coverage and high speculation on not if, but when the oil would make landfall, two hotels in Key West made a pre-emptive move – they are offering guests a clean beach guarantee.

Both the Casa Marina Resort Reach Resort in Key West have seen a 50-percent drop in reservations after the announcement of oil balls found on area beaches. Despite the oil being from some other source, the media coverage was such that travelers are avoiding Gulf resorts.  It’s why the hotels have decided to offer the guarantee, which promises to refund hotel room rates and taxes (minus any food and beverage charges) should the oil slick somehow reach the shores and cause damage. They’ll also waive their standard 72-hour cancellation policy should any oil-related event occur.

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On a recent trip, a friend stayed at a large hotel chain in a metro area. Her stays at this hotel chain have always been good, so she was confident in her choice.

So it surprised her when the little things bothered her. Like the bathroom door – if the toilet lid was down, the door didn’t clear the seat. Odd. Even more odd was the wasted space right outside the bathroom – a huge closet that opened on both sides. Unnecessary given the tight quarters in the bathroom. The amenities she was used to were there, but the breakfast times were odd. She had to be up at 7 to make it to breakfast before 8:30. On a Sunday.

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The month of May brought with it some serious issues for hotel owners in both Nashville and Manhattan. Flooding forced hotels to evacuate guests in the Nashville area while a bombing attempt emptied hotels in the Times Square vicinity. Proof once again that you can’t pre-plan for the unexpected soon enough.

In the Opryland Hotel, 1,500 guests had to be evacuated to a nearby high school as flood waters surprised nearly everyone in the area. In Manhattan, the SUV in the failed bomb attempt was parked beside the Marriott Marquis hotel, forcing the evacuation of the south wing of that hotel and that of The Edison hotel.

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Location, location, location – those are the top three attributes of good real estate. The same is true for your hotel business. If you’ve got the location, you’ve got a head start. But what if that location changes – namely what if the neighbors move out?

Such is the case for hotel owners in and around Texas Stadium. Within walking distance of the complex, hotel owners relished the game-day business surges for decades. Then with the decision to build a new stadium in a different location, the same owners are now looking for ways to make up for a major loss.

Plenty of outside factors determine the occupancy levels in your hotel – the neighbors being just one of those. Popular locations can become unpopular rather quickly because of a rise in crime rates, a threat to public safety, or changes in the landscape that impact the hotel’s operations, such as high rise buildings blocking out views, too much construction affecting the environment, or heavy traffic.

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