High-End Hotels Feeling Economic Pinch

BOSTON -- Boston is considered a destination city because of its educational opportunities, medical institutions and historical tourist attractions.

NewsCenter 5's Liz Brunner reported that over the years, that has given the Hub an edge when it comes to our hotel industry.

High-End Hotels Feeling Economic Pinch

Even with the addition of a number of new hotels, they've all been riding on record profits for years, but those good times may be about to end, at least temporarily.

"New England is usually the last to fall and the last to recover," said Rachel Roginsky, of Pinnacle Advisory Group.

She's been tracking hotel lodging data for 25 years and said the economic downturn is just now hitting the hub.

"People still stay at these high-end hotels, and they will still pay premium prices, but there is going to be an impact," she said.

"What we're seeing is a remixing of the market," said Tim Kirwin, general manager of the two-year-old Intercontinental Hotel in Boston.

He said the business traveler will still travel to meet the client personally.

"People are trading down slightly. They don't want to be perceived as over spending," he said. "So we're seeing some trading into our brand and into our product from some of those very, very expensive hotels, not withstanding, however, there are some folks that are staying with us on occasion, that will trade down to a three-star hotel."

At the five-star Four Seasons, General Manager Bill Taylor said his clientele is not immune, either.

"We are sensing that a vast majority of our guests are careful with their spending," he said.

"Business travelers are beginning to ask for concessions," Roginsky said. "They're starting to ask for free things that they didn't ask for before."