Ruthanne Terrero
Vice President—Content/Editorial Director, Ruthanne Terrero

When there’s a recession, financing for new hotels usually slows down dramatically. Smart owners of existing hotels traditionally take economic downturns, when people aren’t traveling as much as usual, to refurbish their assets. Some don’t, since there isn’t a lot of money flowing in from operations. If you’re a frequent traveler, you can usually tell which tactic an owner is taking the moment you step foot in his hotel.

There’s another dynamic that occurs during a low point in the hotel cycle. Those folks just itching to develop a new hotel in a major gateway city may not get the financing and so they go on the lookout to buy existing properties. Hotel brands usually work hand in hand with them so that they can put their brand flags on these iconic properties and get them listed in their systems. When such a deal goes through, the happy new owner usually invests big time to turn the hotel into an asset that’s worthy of his ego. For you, that means better hotel products to sell that are worthy of your discerning clients who are spending their hard-earned money for a pleasurable leisure or business trip.

We’ve just been in such a cycle and there is plenty of renovation and upgrading at existing properties that have recently changed hands. The Rittenhouse, a trophy hotel in Philadelphia, was purchased last year and the new owners, Hersha Hospitality, at the time said it had identified ways to upgrade and expand the AAA five-diamond hotel.

San Francisco’s Hotel Milano was also sold last year and new owners Pebblebrook Trust will soon rename it after a $10 million renovation and repositioning is completed. Loews Hotels bought the Renaissance Hollywood, which sits along the Walk of Fame, and will rebrand it as a Loews after a $26 million renovation.

The Orient-Express in Sydney, Australia, changed hands and was reflagged as a Langham, which means changes are underway to suit the new luxury hotel flag.

Donald Trump bought the Doral Golf Resort last year and has been spending to the tune of $20 million to upgrade the South Florida resort. The Fairmont Hamilton Princess in Bermuda was sold to the Peter Green family, local Bermudians who intend to invest $50 million into the resort, adding a marina and upgrading rooms, pools, gardens and restaurants.

Warwick International bought Paradise Island Harbor Resort in the Bahamas and stated immediately that it would launch a full renovation and repositioning program.

RockBridge Capital purchased the Dallas icon, Adolphus Hotel. Odds are a major overhaul will soon be underway as the intent is to rebrand the 100-year-old hotel. Starwood Capital sold off four properties in France and the new owners have tapped Hyatt to manage them all. Included in the makeovers will be Hotel Martinez in Cannes, Palais de la Mediterranee in Nice, and Concorde Lafayette and Hotel du Louvre in Paris.

This means plenty of fresh inventory for you to sell; be sure you’re up-to-date on the status of these hotels as they emerge from their renaissances. We’ll be sure to bring you the latest on them on TravelAgentCentral.com.

One caveat: As the hotel industry last year began ascending from its downturn, the next part of the cycle has allowed properties in major markets to raise their rates. Favorable supply-and-demand conditions, brought on by the slowed development pipeline, means average daily rates have been steadily on the uptick since last year. At least now when your clients ask you why their stays cost more than they did over the past few years, you’ll be fully armed to tell them that the hotel industry is a cyclic business and it’s finally getting back to an upswing.