Luxury Hotels Hope Downturn Skips Hollywood

0

On a balmy evening earlier this month, wealthy guests in backless gowns and tuxedoes gathered to toast the city’s newest high-end hotel, SLS, which boasts such amenities as poolside concierges and in-room massages.

But no amount of top-shelf liquor could dull the dreary outlook confronting SLS and the cadre of recently opened luxury hotels. In Los Angeles, where self-indulgence rises to art, SLS splurged on a $700,000 opening party. The company has already begun offering discounts for its freshly minted rooms, showing how the deep strains on the hotel industry are being felt even here.

High-end hotels saw a decrease in occupancy to about 61 percent from about 74 percent, and a nearly 20 percent drop in revenue per available room, a key industry measure, during the first week of December, according to hotel industry watcher Smith Travel Research.

Many of LA’s exclusive hotels have begun making concessions to hard times. The Montage, which has a 20,000-square-foot spa, is offering a rate of $395 a night in early January for a deluxe guest room — a $200 discount. And the SLS offers a half-priced rate for a second night and $50 off any spa treatment with a meal at its Philippe Stark-designed restaurant.





Read the full

Wall Street Journal

story (subscription required).

No posts to display