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.
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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.
Chip Rogers, president and CEO of AHLA, urged Congress to move quickly during the lame duck session to pass additional relief measures.
“Every hour Congress doesn’t act hotels lose 400 jobs. As devastated industries like ours desperately wait for Congress to come together to pass another round of COVID-19 relief legislation, hotels continue to face record devastation. Without action from Congress, half of U.S. hotels could close with massive layoffs in the next six months,” said Rogers.
The post With Travelers Staying Home For Holidays, How Can Hotels Survive? appeared first on Revenue Hub.