A new survey by the American Hotel and Lodging Association (AHLA) shows that over seven in ten US hoteliers believe they won’t survive another six months without further federal assistance.
Over three quarters of respondents (77 per cent) said they will be forced to lay off more workers in the absence of government relief, and over a third said they will be facing bankruptcy or the enforced sale of the business by the end of 2020.
AHLA pointed to data from benchmarking, analytics and marketplace insights firm STR, which showed that US hotel occupancy in urban markets was just 34.6 per cent for the week ending November 7, down from 79.6 per cent a year ago.
A recent national consumer survey by AHLA also suggested that 72 per cent of Americans “were unlikely to travel for Thanksgiving”, with a similar figure (69 per cent) likely to stay at home this Christmas.
Commenting on the findings Chip Rogers, president and CEO of AHLA, said:
“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 US hotels could close with massive layoffs in the next six months,” said Rogers.
“With a significant drop in travel demand and seven in 10 Americans not expected to travel over the holidays, hotels will face a difficult winter. We need Congress to prioritize the industries and employees most affected by the crisis. A relief bill would be a critical lifeline for our industry to help us retain and rehire the people who power our industry, our communities and our economy.”