Monday, April 13, 2009

Hotels Drop Papers--Not a Good Sign

Marriott Hotels to Cease Automatic Newspaper Delivery

Authored by Mark Hefflinger on April 13, 2009

Bethesda, Md. - With demand for daily print newspapers continuing to weaken, Marriott International (NYSE: MAR) said on Monday that it will become the first major hotel chain to cease the automatic delivery of papers to guest rooms.

Beginning June 1, guests of the company's Marriott, JW Marriott and Renaissance properties will have to opt-in to receive a paper -- either USA Today, The Wall Street Journal or a local paper.

In addition, guests of Courtyard, Fairfield Inn, SpringHill Suites, Residence Inn and TownePlace Suites will have access to papers only in hotel lobbies beginning later this month.

Marriott said that the moves come in response to a 25% drop in guest demand for newspaper delivery at its more than 2,600 U.S. hotels.

Based on preliminary data, the company projects that newspaper distribution will be reduced by about 50,000 papers daily or 18 million papers annually.

Marriott became the first major hotel company to offer broad delivery of newspapers through a partnership with Gannett (NYSE: GCI) and USA Today more than 25 years ago.

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