The average hotel nationwide suffered a 35.4 decline in profits in 2009, according to a report issued by PKF Hospitality Research (PKF-HR), which has offices in Boston.

This is the greatest annual fall-off in the bottom line since PKF-HR began tracking the industry in the 1930s.

"Declines in revenues make the headlines, but the bottom line is where the rubber meets the road for owners," said R. Mark Woodworth, president of PKF-HR. "The 35.4 percent decline in profits realized in 2009 has severely stressed borrower/lender relationships throughout the country as delinquencies, defaults, foreclosures, and bankruptcies continue to escalate."

"2009 was such a singular year in terms of hotel expenses and profits," he added. "As the industry approaches a turn, all parties with a vested interest in the bottom line should be measuring their performance against that of comparable facilities to insure that optimum operational efficiency is being realized."

Almost every hotel in the Trends sample suffered a decline in revenues and profits in 2009. Ninety-five percent of the properties experienced a decline in rooms revenue and total hotel revenue from 2008 to 2009.

"Of note is the fact that 81.5 percent of the sample rented fewer guest rooms during the year, implying that the practice of discounting room rates was the main culprit that led to the decline in revenue at most hotels," Woodworth said.