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Financing

Hope continues to dim for the hotel industry

Without a relief package, a majority of hotels will be forced to lay off more workers and close their doors.
Hotel industry apocalypse
Photograph: Shutterstock

A new survey by the American Hotel and Lodging Association (AHLA) found that the majority of hotels are hanging on by a thread.

Without a substantial government relief package, 74% of respondents said they would be forced to lay off more workers. Currently, 68% of hotels are employing less than half of their prepandemic staff.

Additionally, 67% of hotels reported that they won’t be able to last six months more without an improvement in occupancy rates and revenue. And nearly half are in danger of foreclosure by commercial real estate lenders.

The AHLA is urging its members to contact lawmakers and push for a new stimulus package. The organization has launched a grassroots initiative, “Save Hotel Jobs,” to rally support throughout the industry.

“Every member of Congress needs to hear from us about the urgent need for additional support so that we can keep our doors open and bring back our employees,” Chip Rogers, AHLA’s president and CEO, said in a statement.

AHLA conducted the survey with hotel industry owners, operators, and employees from September 14-16, receiving feedback from more than 1,000 respondents.

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