As the COVID-19 virus tears through the United States, more than 40 million people have lost their jobs. Several trillion dollars in stimulus, an amount of government aid that was previously unfathomable, has been passed by congress in an effort to help individuals and industries across all sectors to avoid collapse. Perhaps no segment has been as negatively affected as Leisure, Travel and Hospitality. The American Hotel & Lodging Association released new data in June showing that 70% of hotel employees have been laid off or furloughed as 8 out of 10 hotel rooms across the nation remain empty. As the crisis progresses, the impact to the travel industry is nine times worse than 9/11, with forecasted occupancy rates for 2020 hitting record lows worse than rates in 1933 during the Great Depression.
With home quarantines, social distancing, and company restrictions on business travel becoming the norm, a majority of the population are shunning air travel and hotel stays to avoid infection. According to McKinsey consulting, the sector may not return to pre-COVID levels until 2023. Due to the dramatic downturn in travel, properties that remain open are also operating with minimal staffing. On average, full-service hotels are using 14 employees, down from 50 before the crisis. Will stimulus programs like PPP and temporary overhead reduction be sufficient to save the hospitality industry from irreparable harm? Our esteemed panel of industry experts will discuss these points, along with their own pre- and post-COVID outlooks for hospitality in CREC’s Webinar on July 30.
Your All-Star Hospitality Panel:
Moderator: Brian Silberman, Senior Vice President – CBRE Hotels
#1 – Jeff Breaden, Senior Vice President – The Prime Group, INC.
#2 – Hans Detlefsen, MPP, MAI, President – Hotel Appraisers & Advisors
#3 – Pritesh "Tesh" Gandhi, Commercial Lending & Business Broker – Legacy Lending Partners
#4 – Rich Sprecher, Vice President of Business Development - Aimbridge Hospitality