Problems in the hotel industry continue, due to coronavirus
Are you staying home for the holidays this year? A recent national consumer survey commissioned by the American Hotel & Lodging Association (AHLA), shows that 72% of Americans said they were unlikely to travel for Thanksgiving and 69% were unlikely to travel for Christmas.
And according to STR, a lodging analysis company, nationwide hotel occupancy was 44.2% for the week ending November 7, compared to 68.2% the same week last year. Occupancy in urban markets is just 34.6% — down from 79.6% one year ago.
With a resurgence of COVID-19 and renewed travel restrictions enacted in many states, a new survey of AHLA members shows that the hotel industry will continue to face devastation and significant job loss without additional relief from Congress.
Seven in ten hoteliers (71%) said they won’t make it another six months without further federal assistance given current and projected travel demand, and 77% of hotels report they will be forced to lay off more workers.
Without further government assistance (i.e. second PPP loan, expansion of Main Street Lending Program), nearly half (47%) of respondents indicated they would be forced to close hotels. More than one-third of hotels will be facing bankruptcy or be forced to sell by the end of 2020.
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Chip Rogers, president and CEO of AHLA, urged Congress to move quickly during the lame duck session to pass additional relief measures.