Survey Finds Half of US Hotel Owners at Risk of Foreclosure
AHLA study reveals 74 percent of hotels will see more layoffs without further government action
A new survey by the American Hotel and Lodging Association shows half of hotel owners in the US said they are in danger of foreclosure by their commercial real estate debt lenders due to COVID-19.
The AHLA survey of more than 1,000 hotel industry owners, operators, and employees also found over two-thirds (68 percent) of hotels have less than half of their typical, pre-crisis staff working full time, and without further governmental assistance, three-quarters (74 percent) of respondents said they would be forced to lay off additional employees.
More than 2/3 of hotels (67 percent) report that they will only be able to last six more months at current projected revenue and occupancy levels absent any further relief.
In response, AHLA has created hotelsACT, a grassroots initiative for hoteliers across the country to get lawmakers to pass additional stimulus relief before departing on recess.
“It’s time for Congress to put politics aside and prioritize the many businesses and employees in the hardest-hit industries,” said Chip Rogers, president and CEO of the American Hotel and Lodging Association in a statement. “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.”
Rogers says he reiterated the urgency of the situation on a call on Friday with White House chief of staff Mark Meadows, followed by a conference call with business and travel leaders, hosted by the Economic Innovation Group. The most pressing concerns for the industry right now include access to liquidity and debt service, and liability protection, Rogers says.
“These are real numbers, millions of jobs, and the livelihoods of people who have built their small business for decades, just withering away because Congress has done nothing,” said Rogers on the call. “We can’t afford to let thousands of small businesses die and all of the jobs associated with them be lost for many years.”
|cookielawinfo-checkbox-analytics||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".|
|cookielawinfo-checkbox-functional||11 months||The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".|
|cookielawinfo-checkbox-necessary||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".|
|cookielawinfo-checkbox-others||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.|
|cookielawinfo-checkbox-performance||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".|