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Hotel Industry Updates

77% of Hotels Without Federal Assistance Will Be Forced to Lay Off More Workers, Survey Says

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Story Highlights

  • The American Hotel & Lodging Association’s recent survey reports that 71% of hoteliers will not make it another six months without federal assistance, given the current and projected travel demand, while 77% will be forced to lay off more workers.
  • Forty-seven percent of respondents said they would be forced to close their hotels without federal assistance, while more than one-third of hotels will face bankruptcy or be forced to sell by the end of the year.

The second wave of the coronavirus and travel restrictions continue hammer the hospitality industry. This week, the American Hotel & Lodging Association (AHLA) released the results of a new survey of its members that indicates more hurt is yet to come for the hotel business.

According to the association, 71% of hoteliers said they will not make it another six months without further federal assistance, given the current and projected travel demand and 77% of hotels will be forced to lay off more workers. In addition, 47% of respondents said they would be forced to close their hotels without federal assistance, while more than one-third of hotels will face bankruptcy or be forced to sell by the end of the year.

“Every hour Congress doesn’t act, hotels lose 500 jobs,” AHLA President and CEO Chip Rogers said. “As devastated industries like ours desperately wait for Congress to come together to pass another round of COVID-19 relief legislation, hotels continue to face record devastation. Without action from Congress, half of U.S. hotels could close with massive layoffs in the next six months.”

Rogers predicted that hotels would face a difficult winter. “We need Congress to prioritize the industries and employees most affected by the crisis,” he added. “A relief bill would be a critical lifeline for our industry to help us retain and rehire the people who power our industry, our communities and our economy.”

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