Did you make any plans for this year’s holidays, or have you completely forgotten that any holidays ever existed? The American Hotel and Lodging Association (AHLA) commissioned the latest national consumer survey. By the responses of many Americans, 72% are not likely to travel for Thanksgiving, and 69% would not travel during Christmas.
As per the STR, a lodging analysis company estimated a nationwide hotel occupancy of 44.2% for the week ending on November 7, compared to 68.2% last year this week. The occupancy rate in urban markets dropped to 34.6% this year from the previous year of 79.6%.
With a rebirth of Covid 19 and revised travel restrictions executed in different states, AHLA members displayed a new survey that shows that the hotel industry will face devastation and a very high number of job losses without any additional relief being provided from Congress. When there is no government assistance available in the form of a PPP loan and the expansion of the Main Street Lending Program, Hotels will determine a forced closure. More than one-third of the hotels will experience Bankruptcy or will be induced to sell their property by the end of 2020.
The President and CEO of AHLA, Chip Rogers, advised Congress to advance quickly during the incumbent session to pass additional relief measures. With every hour, devoid of any act of Congress, 400 jobs are being lost. Devastated industries like hospitality are still on wait for Congress to pass another round of the relief legislation of the Covid-19. The Hotels did not show any sign of revival, and situations are getting a lot more worsened.
If Congress does not act, half of the United States hotels will come to a closure with millions losing their job in the next half-year or so. Hotels in the United States approaching the Third Wave of the Covid- 19 during winter will not only face risks of surviving the virus but also losing out on revenue, with the majority of the American travelers not willing to travel during the brutal winter. The Hospitality Industry of the United States relies on Congress to set up the industries and employees mostly damaged by the crisis.
A relief bill is crucial for the industry to retain or rehire people to power the drive, communities, and economy. The Survey conducted by the AHLA of industry owners, operators, and employees between November 10 and 13, had 1200 respondents. The most important finding was that more than two-thirds of the hotels reported that they could last for six more months with the estimated revenue. One-third of the hotels say that they can only last for three more months that would be followed up by the closure of the hotel or sale of the property. 63% of the hotels have less than half of their existing employees working full time, 82% of the hotel owners say that they cannot achieve any additional relief like forbearance from lenders beyond the end of the year. 59% of the owners sense the danger of foreclosure during the covid 19 by the commercial real estate debt lenders, which have increased by 10 % since September.
52% of the hotels state their hotels are on the verge of closure without additional aid, and 98% of hoteliers are willing to apply and make fair use of the second Paycheck Protection Program loan. The Hotel industry may have been the first to be impacted and will be the last to recover. Hotels are still struggling to rehire the staff despite the historic drop in travel demand.