Foreclosure inn: Luxury hotels default

Missed loans payments are on the rise, but what is hurting hotels is good for consumers as owners slash room rates by as much as 12%.

There's plenty of room at the inn. So much, in fact, that many high-end hoteliers are bleeding cash and defaulting on their loans.

"The industry is clearly in a downturn," said John Fox, a vice president with PKF Consulting, an advisor to the hotel industry. "It's across the board with the luxury end of the business hit a little harder than the moderate end."


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