Are Marlene Krauss and David Elder Running the Chelsea Hotel Into The Ground?

Everybody knows that recently you've been able to get a room at the Chelsea Hotel for $89.00 a night.  We've even heard of people getting this rate for large suites. The Wall Street Journal recently ran an article which reports: "Evidence from 2001 suggests that a short-term cyclical downturn could turn into a long-term problem because once room rates are cut, it can take years for them to get back to previous levels."  Maybe this was why in previous economic downturns Stanley Bard had the sense to convert the transient rooms to permanent rooms to ride out the recessions. Krauss and Elder's mismanagement could put the Chelsea in the red for years to come.  They'll be gone and the Hotel will still be suffering.  Other hoteliers should be concerned about Krauss's mismanagement as well since the article goes on to say, "The downturn in the global hotel industry could be deeper and more prolonged than expected if hotel companies continue slashing room rates." -- Ed Hamilton  (photo source)