Skip to content
Search

Latest Stories

AHLA: After six months of pandemic, hotel industry near collapse

Unemployment for the sector remains high while occupancy stays low

SIX MONTHS AFTER the COVID-19 pandemic shut down travel in the U.S., the state of the hospitality industry remains frail, according to the American Hotel & Lodging Association. Indeed, despite slight increases in travel over the summer, AHLA said the industry is on the brink of collapse.

AHLA’s report, “State of the Hotel Industry Analysis: COVID-19 Six Months Later,” compares employment, consumer travel sentiment, occupancy and industry trends in August 2020 the immediate impact of the pandemic in March and April.


“When COVID-19 forced a virtual halt to the country, the economy and travel, the hotel industry was one of the first industries affected,” the report said. “Unfortunately, it will also be one of the last to recover.”

The report outlines five issues facing the industry today:

High job loss:  At the peak of the pandemic, nearly nine in 10 hotels had to lay off or furlough workers, and the hospitality and leisure industry lost 7 million jobs and is still down 4.3 million jobs since February despite small gains in employment in May and June. The sector’s unemployment rate is 38 percent, compared to the national average of 10.2 percent, and only 37 percent of hotels have been able to bring back at least half of their full-time employees. Another 36 percent have been unable to bring back any furloughed or laid off staff.

Low occupancy: Almost 65 percent of hotels remain at or below 50 percent occupancy, below the threshold at which most hotels can break-even and pay debt. While leisure travelers have increased average hotel occupancy since the historic low of 24.5 percent in April, thousands of hotels are at risk of collapse or are unable to hire back staff and there are low expectations that occupancies will pick up until 2021.

Travelers staying home: Only 33 percent of Americans say they have traveled overnight for leisure or vacation since March, and only 38 percent say they are likely to do so by the end of the year, compared to previous levels of 70 percent of Americans planning to take vacations in any given year. Currently, hotel reservations for the Labor Day holiday week are down 65 percent compared to last year, with only 14 percent of hotels being reserved for the holiday.

Urban hotels down the most: Urban hotels are major employers but with an occupancy rate of 38 percent they are faring significantly worse than the national average. Their room revenues were down 78 percent in July as many rely on groups, meetings and business travelers, which are currently nonexistent and unlikely to return until at least 2021. Instead, vacationers have favored drive-to destinations, smaller markets, and other outdoor spaces such as beaches. Absent an unlikely surge in occupancy, they will need Congressional action to avoid collapse.

Bad times in big cities: COVID-19 has left hotels in major cities across the country struggling to stay in business, resulting in massive job loss and dramatically reducing state and local tax revenue for 2020 and beyond. STR’s 25 largest hotel markets in the U.S. have been most negatively impacted by COVID-19 and continue to see an average occupancy of 50 percent less than last year.

“Hotels are central to getting our economy back on track and supporting millions of jobs across the country,” the report said. “A full rebound in travel is years away, and Congressional support is urgently needed to bring our employees back, keep our doors open and survive through this crisis.”

Last month, Speaker of the House Nancy Pelosi sat down for AHLA’s “The Forum: An AHLA Experience” webinar series to discuss the progress, or lack thereof, on the stimulus.

More for you

AAHOACON25 in New Orleans, featuring 500 exhibitors and 5,000 attendees at the Ernest N. Morial Convention Center

AAHOACON25 leads to lasting partnerships

AAHOACON25: A Milestone Event for Hospitality

THE 2025 AAHOA Convention & Trade Show is over, but the partnerships announced during the show will go on. The theme of AAHOACON25 was "New Ideas, New Connections, New Orleans," and more than 5,000 registered attendees filled the New Orleans Ernest N. Morial Convention Center for the conference.

AAHOACON25 also had nearly 500 exhibitors occupying 85,000 square feet of exhibit space, according to AAHOA. The event featured around 20 education sessions, a do-it-yourself product demo experience known as The Garage on the Trade Show Floor, keynote speakers, and networking events, including the Block Party at Fulton Street.

Keep ReadingShow less
Asian Hospitality unveils inaugural ‘Women of Color Power List’

Asian Hospitality unveils inaugural ‘Women of Color Power List’

Women of Color Power List 2025 Debuts at AAHOACON 2025

ASIAN MEDIA GROUP USA, publisher of Asian Hospitality magazine, launched the first-ever “Women of Color Power List 2025” at the 2025 AAHOA Convention & Trade Show in New Orleans, honoring 51 women reshaping the U.S. hospitality industry. The publication is the first to spotlight the achievements of women of color, recognizing their resilience, innovation, and leadership.

Asian Media Group Managing Editor Kalpesh Solanki, Executive Editor Shailesh Solanki, and Chief Operating Officer Aditya Solanki announced the list during the conference.

Keep ReadingShow less
AAHOALending.com લોન્ચ 2025

AAHOA, બ્રિજ AAHOALending.com લોન્ચ કરે છે

AAHOA અને બ્રિજે AAHOALending.com ને AAHOACON 2025 માં રજૂ કર્યું

AAHOA અને બ્રિજે AAHOALending.com લોન્ચ કર્યું, જે હોસ્પિટાલિટી પર કેન્દ્રિત ડિજિટલ ધિરાણ પ્લેટફોર્મ છે. તે AAHOA સભ્યોને 150 થી વધુ ધિરાણકર્તાઓની ઍક્સેસ પ્રદાન કરે છે, જેમાં વધુને વધુ લોકોને નિયમિતપણે ઉમેરવાની યોજના છે, આ પ્લેટફોર્મ વપરાશકર્તાઓને ધિરાણ વિકલ્પોની તુલના કરવાની, શ્રેષ્ઠ દરો અને સુરક્ષિત ભંડોળ શોધવાની મંજૂરી આપે છે.

કોફાઉન્ડર અને CEO રોહિત માથુરની આગેવાની હેઠળના બ્રિજને ક્લબ બ્લુ ઇન્ડસ્ટ્રી પાર્ટનર તરીકે નિયુક્ત કરવામાં આવ્યા છે, જે AAHOAના પ્રોગ્રામમાં સર્વોચ્ચ સ્તર છે, તેના 300 ભાગીદારોમાંથી માત્ર 12 જ લાયકાત ધરાવે છે, એમ બંનેએ સંયુક્ત નિવેદનમાં જણાવ્યું હતું.

Keep ReadingShow less
2025માં મંદીની સંભાવના 50 ટકા : HAMA સર્વે

2025માં મંદીની સંભાવના 50 ટકા : HAMA સર્વે

HAMA 2025 સર્વે: 49% મેનેજર્સ મંદીની આશંકા ધરાવે છે

હોસ્પિટાલિટી એસેટ મેનેજર્સ એસોસિએશનના સ્પ્રિંગ 2025 ઇન્ડસ્ટ્રી આઉટલુક સર્વેક્ષણમાં અંદાજે 49 ટકા ઉત્તરદાતાઓ 2025 માં અમેરિકામાં મંદીની અપેક્ષા રાખે છે, જે 2024ના પાનખર સર્વેક્ષણમાં 19 ટકાથી વધુ છે. ટોચની ત્રણ ચિંતાઓ માંગ, ટેરિફ અને DOGE કટ અને વેતનમાં વધારો વચ્ચેનો જોડાણ છે.

HAMA સર્વેક્ષણમાં જાણવા મળ્યું છે કે લગભગ 55 ટકા ઉત્તરદાતાઓએ તેમની વર્તમાન વ્યૂહરચનાના ભાગ રૂપે બ્રાન્ડ અથવા મેનેજમેન્ટ ફેરફારો કર્યા છે અથવા કરવાની યોજના બનાવી છે.

Keep ReadingShow less
AAHOA Bridge AAHOALending 2025

AAHOA, Bridge launch AAHOALending.com

AAHOA and Bridge Unveil AAHOALending.com at AAHOACON 2025

AAHOA AND BRIDGE launched AAHOALending.com, a digital lending platform focused on hospitality. It offers AAHOA members access to more than 150 lenders, with plans to add more regularly, while allowing users to compare financing options, find the best rates and secure funding.

Bridge, led by Cofounder and CEO Rohit Mathur, has been named a Club Blue Industry Partner, the highest level in AAHOA’s program, with only 12 of its 300 partners qualifying, the duo said in a joint statement.

Keep ReadingShow less