Co-authored by Jim Petrus, Chief Operating Officer, Trump International Hotels Management LLC

There is no question that the hotel industry has, historically, been cyclical in nature. When the economy expands, so do travelers' expectations and we find that former "nice-to-haves" become "must-haves". Astute operators are quick to respond, and the better operators actually intuit, or anticipate, the demand for more and better amenities. The reward in good times is that operators are able to aggressively move rates upwards and reap the rewards of a robust ADR.

Conversely, when the industry goes into a downturn, as we have in 2009, many operators retrench, paring, or at least tweaking, amenities and services to ensure they are aligned with the prevailing rates in their category. Although this process is as much art as science, and is characterized by a certain degree of risk, in the past it has seemed to work.

This particular market downturn is certainly more dramatic than any of us have ever experienced. It has impacted all geographies, all industries and all socio-economic classes. As a result, our industry has been handed the additional challenge of dealing with a consumer whose mindset has changed relative to buying habits. The paradigm has ...