A Struggling U.S. Hotel Market Means a Boon for Other Countries

When even budget hotel brands are struggling to maintain market share, what are the more expensive ones supposed to do? Big chains, including Hilton Hotels, Marriott International, and Starwood Hotels & Resorts, are focusing abroad, especially on Latin America, the Middle East and Asia.

For example, Hilton Hotels announced last week that it signed a franchise agreement to open two properties in Bursa, Turkey. Hilton has also been focused on opening in Croatia, Latin America and the Caribbean. Marriott is planning to open 23 hotels in Mexico in the next five years, and another 23 in China. Starwood opened its first W Hotel & Residences in the Middle East in Doha, Qatar in March, and plans to open 20 other Starwood properties by 2012.

These companies think foreign economies will recover faster than ours. That might be a good idea since introducing new stylish-though-budget-friendly brands in the United States, including Starwood's Aloft and Element brands and new company NYLO, haven't panned out just yet.

But as the hotel business starts to recover a year or two from now, these stylish, budget-friendly brands -- current room rates start at around $110 a night -- might just be the best idea these companies have had in a while. At least, that is, until the next boom.