Omaha daily bee., 1908-09-20
HoTLS ON THE ROCKS
Too Many High Grade HOstelries for
the Business the Metropolis
Affords.

LONDON. Sept. 19-(Special)-Thi city
is suffering from an overproduction of first
class hotels. Although the effect has been
felt all along the line, the latest to give
visible evidence of distress is London's
last word in luxury. the new Picadilly
hotel. which opened so auspiciously last
May, and which is now in the hands of a
receiver.
Within the last twelve months three big
hotels have opened their doors in London.
The first was the Imperial, just off Russell
square, in the heart OF the American quar-
ter, and, largely because Of the American
visitors, 1t has so far proved highly sue
cessful. Next was the Waldorf, in AID
wych, with 400 rooms and the largest palm
lounge in the world, and l understand that
this hotel also has shown very satisfactory
receipts. Neither the Imperial nor tho
Waldorf, however, have held out for top
prices, both being content to fix their
tariff Just a shade below the Savoy, the
Ritz and the other established hotels. in
the hopes Of thus attracting the traveller.
The third new hosiery is the Piccadily.
and, largely because Of its position. one
of the finest and most valuable in London,
and because of the immense amount of
money expended on its construction its
tariff is on a level with the highest. As
a special feature it introduced an open air
terrace garden, where one might eat ones
meals with the sky overhead, as is the
case in so many American hotels. But
the management calculated without con-
sulting the English climate and open air
meals at the Piccadilly have not proved
popular enough to pay for the shrubberv
that lines the walls. Old customers OF
such excellent hotels as the Carlton,
Claridge's and the Berkeley saw no par
ticular reason for deserving them for the
new house, and newcomers to London had
never heard Of the Piccadilly and found
their way to the hotels that are known
the world over instead.
Another factor in the failure OF the news
est OF London hotels is heNcompaTAuvs
scarcity of American travellers this season.
Any new hotel Of the first class which goes
up in London nowadays must cater to
Americans and depends largely upon them
for its ultimate success. At the height
Of the season fully 80 per cent Of the guests
of the big London hotels are Americans.
So il is that a big slump i'm American
arrivals such as we have experienced this
year must seriously affect all hands. and
especially hotels that are struggling for a
, footing.
; The worst feature Of the whole matter
4, is that, despite the present overcrowding
Of the hotel business, yet another big
hostelry is going up. This is the Strand
4 hotel. which is being built for Joseph
Lyons on the site OF Exeter hall. II Is
II expected that it will be more American In
4 its arrangements than any OF the other big
y places. for Lyons visited the United States
recently to look over the hotels and subse-
quently expressed to me his admiration
n Of such establishments as the Waldorf
q. Astoria, which Is likened to a great city in
u itself.
y The ordinary stock Of the big hotels, AL
most without exception, is selling far below
par and much of II could not be disposed
A Of at any price. A few ~ the more popula
manage to squeeze about Z per cent out o
their receipts for the holders of theil
deberture stock, but the preferred stock
holders must join the commons In a sa,
,k lament and a prayer for better days.