Hotels crash amid Coronavirus pandemic

Hotels crash amid Coronavirus pandemic

Major hotel chains are temporarily closing properties and seeing occupancy rates tumble as travelers stay at home during the Coronavirus outbreak. The Coronavirus will have a more "severe economic impact on the hotel industry than 9/11 and the 2008 recession combined," Chip Rogers, CEO of the American Hotel & Lodging Association (AHLA), told reporters in Washington, DC on Tuesday, according to The Hill.

The loss of 4 million jobs is based on a forecasted 30% decline in hotel occupancy rates and could result in a $300 billion hit to the GDP, a study by Oxford Economics produced in partnership with the American Hotel & Lodging Association concluded.

Global hospitality research company STR said that hotel occupancy was down 24.4% to 53% year-over-year. Meanwhile, revenue per available room, a key industry metric, fell 32.5% to $63.74.

In fear of Coronavirus pandemic, numerous clubs, casinos, and such have been closed. Some of the biggest hotel chains in the world did so also: MGM and Wynn Resorts announced the temporary closure of their properties in Las Vegas.

Global hospitality research company STR said hotel occupancy was down 24.4% to 53% year-over-year. Meanwhile, revenue per available room, a key industry metric, fell 32.5% to $63.74. One of the biggest hotel chains in the world, Hilton, is talking through the logistics of closing the hotels to the public so that rooms can be given to vulnerable groups that are at risk of contracting the virus in the coming months.

Marriott International and Priceline are bracing for a pullback as consumers think twice about that spring break getaway.

Marriott is the world’s largest hotel operator with 800 properties in the Asia Pacific region and roughly half in Greater China. Travel restrictions enacted in the past three weeks to contain the virus have led to a sharp drop in occupancies across the mainland for a number of travel operators.

Priceline is estimating a 3% to 7% drop in first-quarter revenue due to an increase in cancellations, lower average daily rates, and fewer room nights booked.


Sources: theguardian.com, businessinsider.com, cnbc.com

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