California hotels see the light

Terranea, a Tuscan-themed luxury resort on the bluffs of Rancho Palos Verdes, California, couldn't have opened at a worse time. The sprawling seaside resort had 582 rooms to rent, a fancy spa, eight restaurants and bars, plus one of the largest ballrooms in the region — and, at its debut two years ago, faced the coldest hospitality market in decades. The owners hired fewer employees than they had planned, launched generous discount promotions and prepared for the worst. In 2009, the hotel industry was in the roughest shape since the Great Depression of the 1930s. Business and leisure travellers drastically cut back on hotel stays, and many owners including Terranea's faced the threat of foreclosure. Hundreds of hotels did go into financial default, but the tide turned this year as travellers ventured forth again, industry analysts said.