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The year of the bear.

How were the last 12 months for you? What have you learnt? What do you expect from next year? James Durston picks out some highlights in a brief annual review of 2009

This year started with the fraught recovery from the terrorist attacks of the year before, and additionally, had to contend with a travel slump and economic recession.

Considering all that, the relatively buoyant mood of hoteliers heading into 2010 is a welcome and refreshing turnaround. “Next year will be the year of accomplishment. We have been born, now we will walk,” says Heinz Egli, general manager at the Novotel Juhu.

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However, that doesn’t negate the turbulent 12-months that comprised 2009. Occupancies took a massive hit this year and ARRs have followed them downwards.

The year started badly, with Rajindera Kumar, then the president of HRANI and now president of FHRAI, saying in the aftermath of the Mumbai terror attacks: “There have been so many cancellations already we now have no choice but to cut rates immediately.”

His correct prognosis will have offered little comfort to those most affected, especially in Mumbai and Delhi, where ARRs fell 42% and 31% respectively during the period January to June, according to the Hotels Price Index from hotels.com.

Further, despite an optimistic mood pervading the Hotel Investment Forum India in January, there were concerns that despite all the warnings, hotels were not doing enough to reassure guests of their security initiatives.

Irad Dale, managing director at HSMT Group, an Israeli security consultancy, came to India in February to perform secret audits of some major chains, and told Hotelier India: “You can have all the latest technology, but when you don’t have staff trained to use it, it’s of no use.”

The gloom lifted slightly later in the year though. Berggruen Hotels debuted with its first Keys hotel in Kerala; Radisson Hotels and Resorts announced plans to bring another 25 properties to India by 2012; while Best Western said it would open another 15 properties before year end. And Starwood started its impressive run in India with its relaunch of the Le Meridien brand.

But still, the challenge of a bear market remained. The relocation of the IPL to South Africa disappointed those looking for a tourism boost mid-year. And general sentiment continued to wax and wane, as bullish talk had to sit alongside the downward spiralling ARRs and RevPARs. By July, STR Global was showing RevPARs at around 60% of the year before.

And then swine flu arrived. F&B departments were particularly hit in Pune and Mumbai, while travellers also cancelled trips to Goa and the east as flu fever gripped the world.

Exactly how badly this affected occupancy rates is hard to say, as the industry, particularly in Goa, was already struggling with some of its lowest occupancies for many years.