The industry was the hardest hit, losing more than 7.6 million jobs, or 47 percent of total positions.
The devastation caused to the industry is severe and expected to last into mid-2021:
• 75% of hotel employees have been laid off or furloughed.
• Impact is 9 times worse than 9/11.
• 8 in 10 hotel rooms are empty.
• Nearly 50 percent of full-service hotels have closed over the past 2 months.
• Multiple hotel companies citing they will not be holding large meetings before June 2021.
• Industry experts estimate it will be at least 2022 before hotels return to their 2019 occupancy and revenue levels.
“Losing nearly as many jobs as the next four sectors combined, the April Jobs Report shows the hospitality industry is truly engaged in a fight for survival. The human toll is measured in millions of jobs lost, and nearly half of all hotels are functionally closed. We are doing everything we can to ensure those jobs aren’t lost forever.” AHLA President & CEO Chip Rogers
Despite this staggering job loss, less than 9 percent of all PPP loans have gone to restaurants and hotels, and covered costs under PPP only make up roughly 47 percent of an average hotel’s total monthly costs. If a hotelier can’t make debt payments, the business will go under and employees won’t have a job to go back to when the economy eventually reopens.
Congress can help put the hotel industry on the road to recovery by expanding PPP to include other costs, increasing the maximum loan amount so hotels can cover costs to stay open and extending PPP beyond June 30. Given the current shelter in place orders and anticipated return of demand, it is highly unlikely travel will rebound by that date.