Interview: COVID-19 and the hotel industry

Sonseeahray Tonsall reports

IN THE HOTEL ROOM OR EVENTHOUGHT ABOUT IT.THOSE ARE THE QUESTIONSPLAGUING THE HOTEL INDUSTRY ISCORONAVIRUS CONCERNS PERSISTFROM COAST TO COAST.

LABOR DAYBOOKINGS WERE DOWN 66% WHENCOMPARED TO LAST YEAR AND INTHE SURVEY DONE THIS MONTH OFMEMBERS OF THE AMERICAN HOTELAND LODGING ASSOCIATION 74% OFRESPONDENTS SAID THEY WILL LAYOFF MORE EMPLOYEES WITHOUTFURTHER FEDERAL HELP URBANHOTEL SUFFERING THE MOSTDURING THIS TIME WITHOCCUPANCY JUST AT 38% HERE TOSHARE MORE ABOUT WHAT THEINDUSTRY IS UP AGAINST RIGHTNOW IS CHIP ROGERS THEPRESIDENT AND CEO OF THEAMERICAN HOTEL AND LODGINGASSOCIATION GOOD MORNING TOYOU.IF YOU WOULD THINK YOU.FIRST HELP ME UNDERSTANDTHE SURVEY THAT YOU DID WERERESPONDENTS LIKE YOU ARE JUSTSMALL INDEPENDENT OPERATIONSLIKE SAY THE BROWN FAMILY BEDAND BREAKFAST OR WHERE THEYAREA.EVERYWHERE ACROSS THEBOARD.

SO WE THE ENTIREINDUSTRY FROM YOUR SMALLESTINDEPENDENT HOTELS OVER LARGECORPORATIONS LIKE HILTON HYATTAND WE HAD OVER A 1000RESPONDENTS THAT ARE MEMBERSOF ICE ARE REALLY GOOD CROSSSECTION OF THE INDUSTRY.ALREADY WILL 68% OF YOURMEMBERS HAVE LESS THAN HALF OFTHEIR TYPICAL STAFF WORKINGTHAN THEY DID PRE COVID GIVE ASENSE OF THOSE WORKERS CANCOME RIGHT BACK IF MORE ROOMSARE BOOKED OR STAFF JUST MOVEDON IN THE INDUSTRY WOULD NEEDTO TRAIN A LOT OF NEW PEOPLE.YEAH YOU BRING UP A REALLYGOOD POINT A LOT OF THESEFOLKS TO MOVE ON TO OTHER JOBSTHAT CAN'T WAIT FOREVER FORINDUSTRY TO REOPEN.

THAT'SGOING TO TAKE US BACK TOANOTHER PROBLEM WE HAD BEFORETHE PANDEMIC BUT I THINK THEREAL STRUGGLE IS THE SURVEYNOTED.IS OVER 2 THIRDS OF THOSETHAT RESPONDED THE SURVEY SAIDTHEY CAN ONLY BETWEEN NOW ANDUP TO 6 MONTHS SO.IF THERE IS NO FURTHERASSISTANCE COMING OR SOMETHINGDOESN'T CHANGE DRAMATICALLY.YOU'RE LOOKING AT 2 THIRDS OFTHESE BUSINESSES WHO MAY NOTBE IN COME SPRING OF NEXTYEAR.THAT'S EXACTLY WHAT I WASJUST GOING TO ASK YOU ABOUTHALF OF HOTEL OWNERS TELLINGYOU THEY'RE IN DANGER OFFORECLOSURE.

BUT THECOMMERCIAL REAL ESTATE DEBTORSOR LENDERS HAS NO ORGANIZATIONNO GROUP STEPPED IN TO TRYBROKER A DEAL HERE OBVIOUSLYEVERYBODY KNOWS WHAT THEPROBLEM IS IN TERMS OF WHYPEOPLE AREN'T COMING OUT TOTHESE HOTELS.YES, SO THE CHALLENGE THATWE FACE IS IS MULTIPLE FIRSTLEADER TRAVEL HAS BEENACTUALLY OK IN SOME PLACESWHERE GOVERNMENTS ARE NOTALLOWED STRUGGLES LEISURETRAVEL SPITTLE CABLE HAS NOBUSINESS TRAVEL AND AS THEMEETINGS CONFERENCES ANDCONVENTIONS KNOTS ABOUT 60 TO70% OF HOTEL INDUSTRY REVENUEEVERY YEAR.

AND SO EVEN IFPEOPLE ARE TAKING VACATIONSWHICH IS GREAT THERE IS NOBUSINESS TRAVEL AND MEETINGSAND CONFERENCES IT'S GOING TOBE A POSSIBLE THESE HOTELSURVIVED BECAUSE THEY'RE SOHEAVILY BASED ON REAL ESTATE,THE DEBT IS ON A TELL THEMORTGAGE THAT YOU WOULD PAY ONA HOTEL PROPERTY TAXES ISENORMOUS AND THAT'S WHY CASHFLOW PROBLEM HAS BECOME SOSICK IT.NOW PROJECTIONS INDICATEYOU'RE JUST TALKING ABOUTLEISURE TRAVEL THAT 38% OFAMERICANS SAY THAT THEY'RELIKELY TO TRAVEL BY THE END OFTHE YEAR JUST 38% THAT'S JUSTA REALLY SCARY NUMBER.WELL IT REALLY IS BECAUSETHAT NUMBER IS TYPICALLYAROUND 70 TO 75% OF PEOPLEEVERY YEAR TRAVEL AT SOMEPOINT.

THING IS IS THAT HOTELSARE REALLY SAFE RIGHT FACTSMEDICAL EXPERTS SAY IT'S ASAFE GOING OUT PLAYING GOLF.

AGALLON OF GASOLINE IS REALLYCHIEF CAN GET YOUR CAR ANDWHEN YOU GET THE HOTEL, THEPRICE, THE HOTELS IS PRETTYCHEAP AS WELL, SO YOU PROBABLYNEVER BEEN A BETTER TIME TOTAKE A VACATION BUT WEULTIMATELY NEED IS THAT THISIS TRAVEL THE MEETING STARTEDLOOKING BECAUSE WITHOUT THATI'M NOT SURE HOW THE INDUSTRYWILL SURVIVE LONG TERM.NOW YOU STARTED THE SAVEHOTEL JOBS CAMPAIGN CALLINGFOR AN EXTENSION OF THEPAYCHECK PROTECTION PROGRAMAND STRUCTURAL CHANGES TO THEMAIN STREET LENDING FACILITYMORE THAN 200,000 LETTERS ANDCALLS AND TWEETS ALREADY ONTHE CONGRESS WHAT KIND OFRESPONSE ARE YOU GETTING.WELL IS THE SAME OLD SAMEOLD SOMETIMES SEEMS LIKEMEMBERS OF CONGRESS ARE MORECONCERNED ABOUT SAVING THEIRJOBS AND SAVING THE JOBS OFMILLIONS OF PEOPLE HAVE BEENIMPACTED BY THIS PANDEMIC IS ALOT OF DISCUSSION AT THEMEETING WASHINGTON DC THEGROUND CAMPAIGN.

WE JUSTREALLY THINK THAT'S NOT WHAT APUBLIC SERVANT IS ALL ABOUTYOU SHOULD BE SAYING THEY'RESOLVING THESE PROBLEMS WITHRESPECT THEY SAY BOTH SIDESAGREE REPUBLICANS SAY THEY'REWORKING THEREFORE THE PROBLEMHAS BEEN CAUGHT UP IN ALL THEOTHER ALL TICKS SO IFSOMETHING WORK RELATIVELY WELLIT COULD REALLY HELP OURINDUSTRY IN RESTAURANTS ANDEVERYBODY ELSE IN THE TOURISMINDUSTRY.

IT JUST KIND OFSITTING ON THE SIDELINES ASTHEY CRAFT A BETTER DEAL ORBIGGER DEAL BUT WE DON'T KNOWTHAT THEY'LL EVER GET TO THAT.ALL RIGHT WE'LL DEFINITELYSOMETHING THAT WE'RE GOING TOBE TRACKING AND WE WILL CHECKBACK IN WITH YOU ABOUT ITTHANK YOU SO MUCH FOR JOINING