It used to be that people rented a hotel room, ate dinner, got drunk and screwed. Now that people have gone back to doing that at home, it's the hotels that are getting screwed.
Morgans Hotel Group Co. owns or has an ownership interest in properties around the world including The Shore Club, The Delano, and The Mondrian South Beach.
Their just released 2nd quarter report states "Food and beverage revenue decreased 27.0% to $19.4 million for the three months ended June 30, 2009 compared to $26.6 million for the three months ended June 30, 2008."
In transcripts of a conference call regarding the report (obtained via Seeking Alpha) President and CEO David Kleisner said "Miami has traditionally enjoyed high demand from South American countries in the summer. We have seen a moderation in that demand."
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Basically, South Beach just needs an 80's style drug money infusion. Cocaine cowboys stand up.