Hyatt Regency Suites will debut its multimillion-dollar renovation in Palm Springs next week.

 

The convention hotel of Palm Springs has made its Renaissance, and Homewood Suites of La Quinta reopened Tuesday.

 

Tribes in the Coachella Valley, from the Agua Caliente Band of Cahuilla Indians and Morongo Band of Mission Indians to the Cabazon Band of Mission Indians keep a constant advertising blitz — with big jackpots and Las Vegas-type entertainers — to get gamers to blaze trails here.

 

But with occupancy levels in the Coachella Valley ending 2009 at 51 percent, and revenue per available room (RevPAR) off by 21 percent, tourism analysts who monitor the desert say they can't imagine 2010 getting any worse.

 

 “We project flat growth in demand in 2010 with less than a 1 percent increase in supply and 1.8 percent decrease in rate,'' said PKF Consulting lodging analyst Gabrielle Lerner. “That would result in a year-end occupancy and rate of 50 percent and $128.47, respectively.”

 

Alan Reay, president of Atlas Hospitality Group, tracks the sales of property in the hospitality industry and said 2009 brought the “lowest amount of hotel sales” over the 15 years he has tracked statistics.

 

Sales are down 53 percent, he said. “There's been a big disconnect between buyers and sellers.”

 

Revenue from properties that have been bought and sold are off 75 percent year-over-year.

 

There have been a number of foreclosures, as well, across California, Florida, Arizona and Nevada.

 

Banks took back several properties in 2009, including Horizon Hotel, Racquet Club, Palm Tee and Desert Bear hotels, all of Palm Springs; and one property in Desert Hot Springs.

 

Many hotels in boom areas are operating under a loan modification worked out with their bank, Reay said.

 

“Most lenders want to avoid taking back management-intensive real estate, like a hotel.”

 

What's ahead?

 

“I don't see it start to bottom out in terms of revenue declines until mid-2010.”