Ed Brock is an award-winning journalist who has worked for various U.S. newspapers and magazines, including with American City & County magazine, a national publication based in Atlanta focused on city and county government issues. He is currently senior editor at Asian Hospitality magazine, the top U.S. publication for Asian American hoteliers. Originally from Mobile, Alabama, Ed began his career in journalism in the early 1990s as a reporter for a chain of weekly newspapers in Baldwin County, Alabama. After a stint teaching English in Japan, Ed returned to the U.S. and moved to the Atlanta area where he returned to journalism, coming to work at Asian Hospitality in 2016.
MIRAJ PATEL, PRESIDENT of Wayside Investment Group in Houston, was planning for success when he bought a Galveston, Texas, Travelodge by Wyndham to convert into a Red Roof PLUS+. His partners and he timed the opening of the new beachside hotel just right, they thought.
“Right now, this is the season where you make money because it’s spring break time,” Patel said. “We bought this property in November and we quickly put in more than $1.1 million into renovations. We strategically opened it within four months just so we could open during this month. But for this one property we’re walking straight into a negative slope.”
The COVID-19 pandemic’s crushing blow to the travel industry is the cause.
“We opened on Thursday and Saturday and Sunday were great, then Monday it just suddenly dropped,” he said.
Hoteliers around the country have similar stories.
Galveston turned ghost town
Over the past year and a half, Patel’s company has opened three hotels, including most recently the 66-room Red Roof PLUS+, opened on March 12. The timing, it turned out, was not good.
“We were supposed to hit our projections and now we’re seeing nearly 25 percent to 30 percent occupancy drop,” Patel said. “We are also seeing a lot of cancellations.”
They have been asking guests who cancel their reason for doing so, Patel said.
“We were seeing if coronavirus was the main reason, and it is,” he said. “Everybody said it’s because of the coronavirus, we’re simply not traveling.”
Galveston island is completely empty and local authorities have issued orders for restaurants and bars to shut down, Patel said, and the Houston Chronicle said the county plans to issue a shelter-in-place order. Typically rates at this time are more than $300 a night, Patel said, but now they are setting rates around $40 a night.
“Now there’s no reason for people to travel because there’s nothing for them to do anymore,” Patel said. “These are our flagship hotels, but we also have our independent properties where most of the clientele is local. But even there we’ve seen a huge slope. People are simply just not leaving their homes.”
His fellow hoteliers on the island are being hit as hard as Patel, if not harder.
“People simply are not going to hit their projections,” he said. “At one hotel [in Galveston] one general manager told me that he’s seen, just in the month of March, for his one hotel he’s seen a $150,000 reduction on his projections.”
That owner is laying off 12 people and many of the other hotels on the island are laying off workers.
“We’re all trying to share resumes to see if we can try to save these people’s jobs by maybe hiring them at one of our hotels,” Patel said. “We’re just trying to work together to see if we can avoid laying these people off and if we do have to lay them off because we can’t afford it maybe find them a job where another hotel might need them.”
The crisis has tempered the usually competitive market, he said.
“At this point we’re just trying to help each other, trying to make sure we can pay the bills,” he said.
On a brighter note, Patel said he has not suffered from a lack of supplies as some hotels have seen.
“Two weeks ago, we actually bought extra. We had a feeling that this was going to get bad, so we were proactive,” he said.
Online shopping has helped, he said.
“We’re calling our vendor partners and they say it’s going to take this much time, that much time,” Patel said. “We’re just going on Amazon.com and right now that’s been our best friend.”
Patel also is AAHOA’s young professional director for the western division, and he said they have held weekly conference calls on helping members avoid paying unnecessary fees.
“We’re also trying to push the government to help us with relief packages,” he said.
Over the weekend, Cecil Staton, AAHOA’s president and CEO, issued a statement asking members of Congress to overcome their political differences to pass the Coronavirus Aid, Relief, & Economic Security Act, which has stalled in the House. Patel said that stimulus is needed now.
“[The COVID-19 pandemic] happening so quick and that’s what’s scaring a lot of the hoteliers, even myself,” Patel said. “It’s getting worse and worse day by day. We just don’t know what the future is going to look like.”
California calamity
California-based hotelier Sunil “Sunny” Tolani, founder of the non-profit Prince Organization charity, said the pandemic was definitely affecting all of his hotels.
“Occupancy is decreasing at all hotels rapidly at this time. We are seeing cancellations through September or later at the hotel level from our guests,” Tolani said. “Group travel through June is at 100 percent cancellations at this time.”
Tolani has not closed any hotels yet, primarily because his staff members need the hours to pay their bills.
“As hotel owners and general managers it is our responsibility to our associates and guests to give them the best we can, monitoring the issues and having a ‘plan of action’ in place to eliminate any fears during this stressful time in the world,” he said.
His general managers have had to use different vendors for supplies, he said.
“Toilet paper, Clorox cleaning products, Purell hand sanitizer and Lysol spray are not readily available from any vendor to us at this time, and if the vendor does have an item like toilet paper, we can only get one case at a time,” he said. “Hotels order weekly for normal operations and we order many cases of items to operate. This is very challenging at this time to even obtain one case of any item.”
Tolani said his hotel staff have even had to keep supplies under lock and key to avoid theft by guests.
And what are hoteliers doing to help each other get through the crisis?
“Firstly, praying, believing in the power of faith and miracles, coming together as family,” Tolani said. “This too shall pass.”
We want to hear from you. Share your story about how the COVID-19 epidemic is affecting your business in the comments below, on Facebook or Twitter or by emailing Asian Hospitality Editor Ed Brock at ed.brock@amgusa.biz.
A PETITION FOR a referendum on Los Angeles’s proposed “Olympic Wage” ordinance, requiring a $30 minimum wage for hospitality workers by the 2028 Olympic Games, lacked sufficient signatures, according to the Los Angeles County Registrar. The ordinance will take effect, raising hotel worker wages from the current $22.50 to $25 next year, $27.50 in 2027 and $30 in 2028.
Mandatory health care benefits payments will also begin in 2026.
The L.A. Alliance for Tourism, Jobs and Progress sought a referendum to repeal the ordinance, approved by the city council four months ago. The petition needed about 93,000 signatures but fell short by about 9,000, according to Interim City Clerk Petty Santos.
The council approved the minimum wage increase for tourism workers in May 2023, despite opposition from business leaders citing a decline in international travel. The ordinance requires hotels with more than 60 rooms and businesses at Los Angeles International Airport to pay workers $30 an hour by 2028. It passed on a 12 to 3 vote, with Councilmembers John Lee, Traci Park and Monica Rodriguez opposed.
The L.A. Alliance submitted more than 140,000 signatures in June opposing the tourism wage ordinance, triggering a June 2026 repeal vote supported by airlines, hotels and concession businesses.
AAHOA called the ruling a setback for Los Angeles hotel owners, who will bear the costs of the mandate.
"This ruling is a major setback for Los Angeles' small business hotel owners, who will shoulder the burden of this mandate," said Kamalesh “KP” Patel, AAHOA chairman. "Instead of working with industry leaders, the city moved forward with a policy that ignores economic realities and jeopardizes the jobs and businesses that keep this city's hospitality sector operating and supporting economic growth. Family-owned hotels now face choices—cutting staff, halting hiring, or raising rates—just as Los Angeles prepares to host millions of visitors for the World Cup and 2028 Olympics. You can't build a city by breaking the backs of the small businesses that make it run."
Laura Lee Blake, AAHOA president and CEO, said members are proud to create jobs in their communities, but the ordinance imposes costs that will affect the entire city.
“Even with a delayed rollout, the mandate represents a 70 percent wage increase above California's 2025 minimum wage,” she said. “This approach could remove more than $114 million each year from hotels, funds that could instead be invested in keeping workers employed and ensuring Los Angeles remains a competitive destination. The mandate increases the risk of closures, layoffs and a weaker Los Angeles."
A recent report from the American Hotel & Lodging Association found Los Angeles is still dealing with the effects of the pandemic and recent wildfires. International visitation remains below 2019 levels, more than in any other major U.S. city.
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AHLA Foundation is partnering with ICHRIE and ACPHA to support hospitality education.
The collaborations align academic programs with industry workforce needs.
It will provide data, faculty development, and student engagement opportunities.
THE AHLA FOUNDATION, International Council on Hotel, Restaurant and Institutional Education and the Accreditation Commission for Programs in Hospitality Administration work to expand education opportunities for students pursuing hospitality careers. The alliances aim to provide data, faculty development and student engagement opportunities.
Their efforts build on the foundation’s scholarships and link academics to workforce needs, AHLA said in a statement.
"We're not just funding education—we're investing in the alignment between academic learning and professional readiness," said Kevin Carey, AHLA Foundation president and CEO. "These partnerships give us the insights needed to support students and programs that effectively prepare graduates to enter the evolving hospitality industry."
ACPHA will provide annual reports on participating schools’ performance, enabling the Foundation to direct resources to programs with curricula aligned to industry needs, the Foundation said.
Thomas Kube, incoming ACPHA executive director, said the partnership shows academia and industry working together for hospitality students. The collaboration with ICHRIE includes program analysis, engagement through more than 40 Eta Sigma Delta Honor Society chapters and faculty development.
“Together, we are strengthening pathways to academic excellence, professional development and industry engagement,” said Donna Albano, chair of the ICHRIE Eta Sigma Delta Board of Governors.
Fragmented systems, poor integration limit hotels’ data access, according to a survey.
Most hotel professionals use data daily but struggle to access it for revenue and operations.
AI and automation could provide dynamic pricing, personalization and efficiency.
FRAGMENTED SYSTEMS, INACCURATE information and limited integration remain barriers to hotels seeking better data access to improve guest experiences and revenue, according to a newly released survey. Although most hotel professionals use data daily, the survey found 49 percent struggle to access what they need for revenue and operational decisions.
“The Future of Hotel Data” report, published by hospitality data platform Hapi and direct booking platform Revinate, found that 40 percent of hoteliers cite disconnected systems as their biggest obstacle. Nearly one in five said poor data quality prevents personalization, limiting satisfaction, loyalty and upsell opportunities.
“Data is the foundation for every company, but most hotels still struggle to access and connect it effectively,” said Luis Segredo, Hapi’s cofounder and CEO. “This report shows there’s a clear path forward: integrate systems, improve data accuracy and embrace AI to unlock real-time insights. Hotels that can remove these technology barriers will operate more efficiently, drive loyalty, boost revenue and ultimately gain a competitive edge in a tight market.”
AI and automation could transform hospitality through dynamic pricing, real-time personalization and operational efficiency, but require standardized, integrated and reliable data to succeed, the report said.
Around 19 percent of respondents cited communication delays as a major issue, while 18 percent pointed to ineffective marketing, the survey found. About 10 percent reported challenges with enterprise initiatives and 15 percent said they struggled to understand guest needs. Nearly 46 percent identified CRM and loyalty systems as the top priority for data quality improvements, followed by sales and upselling at 17 percent, operations at 10 percent and customer service at 7 percent.
Meanwhile, hotels see opportunities in stronger CRM and loyalty systems, integrated platforms and AI, the report said. Priorities include improving data quality for personalized engagement, using integrated systems for real-time insights, applying AI for offers, marketing and service and leveraging dynamic pricing and automation to boost efficiency, conversion and profitability.
“Clean, connected data is the key to truly understanding the needs of guests, driving amazing marketing campaigns and delivering direct booking revenue,” said Bryson Koehler, Revinate's CEO. “Looking ahead, hotels that transform fragmented data into connected data systems will be able to leverage guest intelligence data and gain a significant advantage. With the right technology, they can personalize every interaction, shift share to direct channels and drive profitability in ways that weren’t possible before. The future belongs to hotels that harness their data to operate smarter, delight guests and grow revenue.”
In June, The State of Distribution 2025 reported a widening gap between technology potential and operational readiness, with many hotel teams still early in using AI and developing training, systems, and workflows.
Hyatt partners with Way to unify guest experiences on one platform.
Members can earn and redeem points on experiences booked through Hyatt websites.
Way’s technology supports translation, payments and data insights for Hyatt.
HYATT HOTELS CORP. is working with Austin-based startup Way to consolidate ancillary services, loyalty experiences and on-property programming on one platform across its global portfolio. The collaboration integrates Way’s system into Hyatt.com, the World of Hyatt app, property websites and FIND Experiences to create a centralized booking platform.
World of Hyatt members can earn and redeem points on experiences booked through Hyatt websites, including wellness programs, cultural activities, ticketed events and local collaborations, the companies said in a statement. Members can also access FIND Experiences, which includes activities and auctions where points can be used to bid on events.
"In our search for an on-brand platform to power experiences and tap into ancillary revenue opportunities, Way's collaboration has been a true unlock for us," said Arlie Sisson, Hyatt’s senior vice president and global head of digital. "After a thorough evaluation of potential solutions, Hyatt chose Way to power the next chapter of our digital strategy by streamlining operations, elevating brand differentiation, enhancing personalization and, most importantly, delivering care at every touchpoint in the guest journey."
The Way initiative spans Hyatt’s portfolio, covering cabana rentals, in-room amenities and partnerships with local providers, the statement said. Way’s technology supports real-time translation, more than 100 currencies, multiple payment methods and data insights to help Hyatt manage operations globally.
"Hyatt set a high bar and Way is proud to bring their vision to life," said Michael Stocker, Way’s co-founder and CEO.
"The platform supports enterprise needs while preserving the guest experience."
U.S. CMBS delinquency rate rose 10 bps to 7.23 percent in July.
Multifamily was the only property type to increase, reaching 6.15 percent.
Office remained above 11 percent, while lodging and retail fell.
THE U.S. COMMERCIAL mortgage-backed securities delinquency rate rose for the fifth consecutive month in July, climbing 10 basis points to 7.23 percent, according to Trepp. The delinquent balance reached $43.3 billion, up from $42.3 billion in June.
Trepp’s “CMBS Delinquency Report July” showed multifamily led the increase, with its delinquency rate rising 24 basis points to 6.15 percent. Lodging fell 22 basis points to 6.59 percent and retail declined 16 basis points to 6.90 percent. Office delinquencies edged down to 11.04 percent after hitting a record 11.08 percent in June.
Loan-level analysis showed $4.4 billion in loans became newly delinquent in July, exceeding $3 billion that cured. Mixed-use, retail and office each accounted for more than $800 million of newly delinquent loans.
The seriously delinquent share, 60+ days, foreclosure, REO, or non-performing balloons, rose to 6.93 percent, Trepp said. Excluding defeased loans, the overall delinquency rate would be 7.41 percent.
A separate report from Lodging Econometrics showed the global hotel pipeline at 15,871 projects, up 3 percent year-over-year, totaling 2,436,225 rooms, up 2 percent.