Skip to content

Search

Latest Stories

COVID-19 pandemic continues draining the U.S. travel and hospitality industry

CBRE forecasts 37 percent loss in RevPAR for the year while nearly 6 million jobs may be lost by next month

IN A WEEK of bad news, the numbers tell a dismal tale. Occupancy continues to slide down, millions of people are out of their jobs and the forecast for the near future, a future in which the COVID-19 pandemic still rages, is bleak.

During the second week of March, occupancy for U.S. hotels dropped 56.4 percent to 30.3 percent, RevPAR dropped 69.5 percent to $28.32 and ADR sank 30.2 percent to $93.41, according to STR.


“RevPAR decreases are at unprecedented levels—worse than those seen during 9/11 and the financial crisis,” said Jan Freitag, STR’s senior vice president of lodging insights. “Seven of 10 rooms were empty around the country. That average is staggering on its own, but it’s tougher to process when you consider that occupancy will likely fall further. With most events cancelled around the nation, group occupancy was down to one percent with a year-over-year RevPAR decline of 96.6 percent. The industry is no doubt facing a situation that will take a concerted effort by brands, owners and the government to overcome.”

San Francisco/San Mateo, California, recorded the worst declines, with occupancy dropping 80.7 percent to 16.6 percent, ADR falling 44.7 percent to $151.25 and RevPAR declining 89.3 percent to $25.08.

The COVID-19 pandemic is projected to cause the loss of 5.9 million jobs in the U.S. travel industry by the end of April, according to the U.S. Travel Association. A previous analysis had forecast the loss of 4.6 million jobs before May.

“The coronavirus crisis is hitting the travel economy hard, and it’s also hitting fast,” said Roger Dow, USTA president and CEO. “These new figures underscore the extreme urgency of financial relief for travel businesses—83 percent of which are small businesses—so they can keep paying their employees. Not only are workers suffering right now, but if employers are forced to close their doors, it is unknown when or if those jobs will ever come back.”

Dow said it is urgent that Congress pass the Coronavirus Aid, Relief & Economic Security Act that would provide small business loans and increased unemployment payments to mitigate the impact of the virus on the industry. Congressional negotiators settled on a deal to pass the CARES Act late Tuesday. The Senate approved it Wednesday and the House is expected to vote on it Friday, according to CNN.

“The health crisis deserves the government’s full attention, but the economic crisis will be worse and longer without aggressive action to confront it right now,” Dow said. “

The immediate future looks unpromising, according to CBRE Hotels Research’s revised 2020 hotels forecast. RevPAR is expected to decline 37 percent for the year with a 60 percent drop in the second quarter alone.

However, the news was not all bad, Jamie Lane, senior managing economist for CBRE and Econometric Advisors, said in “An Updated 2020 Outlook Expectations for the Year Ahead.”

“Governments throughout the world are implementing monetary and fiscal stimulus to try to prevent a more long-term global recession,” Lane said. “Our current expectations are that this stimulus, as well as pent up demand, will lead to a substantial rebound in economic activity in 2021.”

The forecast calls for a 38 percent rise in RevPAR in 2021 and a restoration to 2019 levels by 2022.

More for you

Hotel Tech Advances; Outpaces Operational Readiness

Report: Tech outpaces readiness in hotels

  • A gap is growing between technological potential and operational readiness, with many hotel teams still early in AI use.
  • Distribution teams are evolving with limited resources and uneven investment in talent and automation.
  • The report outlines how commercial teams in hospitality are managing transformation.

THERE IS A widening gap between technological potential and operational readiness, with many hotel staff still early in using AI effectively, according to “The State of Distribution 2025” report. Despite the availability of technology, training, systems and workflows remain in development.

The second edition of the industry benchmark report—published by NYU SPS Jonathan M. Tisch Center of Hospitality and its Hospitality Innovation Hub, in collaboration with RateGain Travel Technologies and HEDNA—noted that as traveler expectations rise, aligning people, processes and platforms is becoming a driver of performance.

Keep ReadingShow less
Peachtree Group's Residence Inn by Marriott under construction in downtown San Antonio, topping out milestone reached, June 2025

Peachtree tops out San Antonio Residence Inn

Peachtree Hotel to Open in Summer 2026 with 117 Extended-Stay Rooms

PEACHTREE GROUP HELD a “topping out” for its Residence Inn by Marriott in downtown San Antonio, Texas, marking completion of the structural phase of the 10-story, 117-room hotel. The property, co-developed with Austin-based Merritt Development Group, is scheduled to open in summer 2026.

The extended-stay hotel will be owned by Peachtree and managed by its hospitality management division, the company said in a statement.

Keep ReadingShow less
Air India plane crash 2025
Photo by Sam PANTHAKY / AFP

Air India reducing flights after deadly crash

AIR INDIA WILL reduce international service on widebody aircraft by 15 percent through at least mid-July, according to media reports. The decision comes less than a week after the June 12 crash of an Air India airliner carrying 230 passengers and 12 crew members in Ahmedabad, India, that killed 246 but left one survivor among the passengers.

The airline said the reduced service due to the safety inspection of aircraft and ongoing geopolitical tensions in the Middle East, which have disrupted operations, resulting in 83 flight cancellations over the past six days, according to ABC News. Passengers can either reschedule their flights at no additional cost or receive a full refund.

Keep ReadingShow less
hihotels executive team honored for long-term service and loyalty in hospitality

Hihotels recognizes eight company leaders

EIGHT LEADERS OF hihotels by Hospitality International, Inc. are being recognized by the company for their combined 121 years of service. The company was established in 1982 as an alternative to other, established brands.

The honorees include Paul Vakharia, hihotels’ senior director of franchise development for the Northeast Region who has been with the company for 25 years. Chhaya Patel, franchise development coordinator, also has been with the company for 25 years.

Keep ReadingShow less
ICE Raid Resumes in Hotels & Farms After DHS Reversal
Photo by Mario Tama/Getty Images

Reuters: ICE resumes hotel immigration raids

ICE Reverses Decision to Pause Raids on Key Industries

U.S. IMMIGRATION OFFICIALS have reversed enforcement limits at hotels, farms, restaurants and food processing plants days after issuing them, following conflicting statements by President Donald Trump, according to Reuters. ICE leadership told field office heads on Monday it would withdraw last week's directive that paused raids on those businesses.

ICE officials were told a daily quota of 3,000 arrests—10 times the average last year under former President Joe Biden—would remain in effect, two former officials said in the report. ICE field office heads raised concerns they could not meet the quota without raids at the previously exempted businesses, Reuters reported, citing a source.

However, it was not clear why the directive was reversed.

Keep ReadingShow less