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Hyatt Hotels released the following statement in response to the governor’s boycott threat:

“We are very disappointed by the Governor’s decision to threaten a boycott of our hotels since it directly threatens the 600 associates who work in Hyatt properties and who live and work in Massachusetts at a time when businesses and individuals are cutting back on travel during the worst economic period we have seen in decades,” said Phil Stamm, General Manager of Hyatt Regency Boston.

“We do not understand why the Governor is putting more Massachusetts jobs at risk instead of working with us to find jobs for employees affected by the realities of these unprecedented economic challenges.” Like so many other businesses – we have been forced to make some very difficult decisions. We deeply regret whenever staff reductions are necessary – and we have instituted a task force to provide support to the Boston-area Hyatt employees affected by the recent restructuring of the hotels’ housekeeping services.”

“In support of their transition to new jobs, the program includes extended healthcare coverage and retraining assistance tailored to the situation of each individual.

Our management teams and human resource directors from each of our Boston properties, along with Hyatt’s regional management team are creating individual support plans for each of the affected employees in addition to the severance, healthcare coverage, and counseling already provided:”

• The support program will have several features, but will focus on retraining.
• Hyatt is extending healthcare coverage through the end of this year to provide additional support.
• Hyatt will assist affected employees in utilizing every commercially reasonable means available to secure new positions.

“We intend to remain committed to this as long as is necessary for those who are seeking new jobs to find them. We have been reaching out and will continue to reach out to each of our affected employees. We will remain unwavering in our commitment to provide assistance to them during their transitions to new jobs.”

Hotel operator Gaylord Entertainment Co (GET.N) raised its share offering by 1 million shares to 6 million shares and priced it at $21.80 apiece, on par with Wednesday’s closing price.

On Tuesday, the operator of Gaylord Hotels and country music center Grand Ole Opry had said it plans to offer 5 million common shares to partly redeem some of its debt.

The proceeds from the offering, expected to be approximately $125 million, after deducting underwriting discounts and commissions and estimated expenses, will be used to redeem all of the company’s $259.8 million outstanding 8 percent senior notes due 2013.

Gaylord shares were down nearly 4 percent at $20.96 in Thursday morning trade on the New York Stock Exchange

Luxury hotel owners risk defaulting on their debt as the recession cuts occupancies and the credit crunch constrains refinancing.

Loans secured by more than 1,500 hotels with a total outstanding balance of $24.5 billion may be in danger of default, according to Realpoint LLC, a credit rating company that tracks commercial mortgage-backed securities. Some of the biggest loans, put on the company’s watch list because of late payments, decreasing occupancies or cash flow, were made to luxury properties where rooms can cost more than $850 a night.

The U.S. hotel loan-delinquency rate may climb to 8.2 percent by year-end, Morgan Stanley analysts led by Andy Day said in a June 23 report. That would match the peak from the last recession in 2001.

Upscale hotels are suffering from “a heightened focus on prudent corporate travel expenditures,” as well as the pullback in vacation travel, Day said.

Microsoft Corp., coping with its first annual sales decline, said in July it would slash $3 billion in operating expenses, including travel spending.

Ross Klein, the head of Hilton Hotel’s luxury lifestyle brands, who was accused of corporate espionage by his former employer Starwood Hotels and Resorts, has left the company.

Klein, who was originally instrumental in the development of Starwood’s W brand, then controversially launched Hilton’s new lifestyle brand Denizen in April this year.

But the project was stalled when Starwood took legal action against him and another former Starwood colleague Amar Lalvani who had defected with him to Hilton, alleging theft of ideas.

Starwood is also in the process of suing Hilton for what the writ described as “the clearest imaginable case of corporate espionage, theft of trade secrets, unfair competition and computer fraud”.

State employees will stop official business at Hyatt hotels until the company rehires housekeepers it fired last month, under a directive from Gov. Deval Patrick.

Patrick told Hyatt CEO Mark Hoplamazian in a letter sent Tuesday that travel and events under state auspices would cease at the hotels, saying the workers had been treated unfairly, following up on a call to Hoplamazian last week, Patrick’s office said in a press release.

“I am disappointed by your companies unwillingness to reconsider the decision to replace the housekeeping staff with an ‘outsourced’ firm, and give the jobs back to the people who were displaced, Patrick said.