It’s been an ugly year for hotels. In the second quarter, revenue per available room, the industry benchmark of measuring performance, fell 19.5% from a year ago, says Smith Travel Research.

During any other year, that might signal a business boom. But few things seem normal in a year when the travel industry has been turned upside down by companies severely cutting back.

Hotels

It’s been an ugly year for hotels. In the second quarter, revenue per available room, the industry benchmark of measuring performance, fell 19.5% from a year ago, says Smith Travel Research.

The decline will continue for much of 2010, analysts say. Room rates will fall 1% to 6% in North American hotels, and upscale properties will offer deeper price cuts, American Express says.

Mark Woodworth of PKF Consulting expects year-over-year declines to continue until the fourth quarter of 2010. But they will be “much less pronounced” next year, he predicts.

Adding to the problem is a bountiful supply of rooms. The industry is still absorbing rooms that it broke ground on just as signs of a travel downturn started to emerge in early 2008.

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