Lodging Woes Linger in Troubled Times

Few businesses felt the sting from the collapse of Lower Manhattan's Twin Towers more than lodging. Not only was the impact immediate -- the Marriott World Trade Center hotel was destroyed and the Millenium Hilton was severely damaged -- but it has continued to linger.

Last year's tragedies have resulted in lower occupancy, cheaper rates and depressed profits for the hotel sector. Now, even as we rebuild from the attacks, the challenges of a chronic reduction in business travel and an anemic economy continue to haunt hoteliers.

But Sept. 11 may have only been the catalyst for overly bullish investors to see the real erosion in hotel fundamentals. And, if the pundits are right, the swoon may not subside anytime soon. ...