Spain’s hospitality sector faces grim future
The hospitality, commerce and hotel sectors in Spain’s Andalucía all foresee a grim future following tighter restrictions that started on November 22. It has been estimated that one in three businesses could close if the new restrictions are introduced, with even an extension to the 6 p.m. closing times deemed to be just as damaging. The new restrictions decreed by the Junta de Andalucía for the entire region have now been in force for almost two weeks. They included the curfew that begins at 10 p.m., the closure of all non-essential activities after 6 p.m. and the border closure of the region.
AHLA chides lack of U.S. assistance
Chip Rogers, president and CEO of the American Hotel & Lodging Association criticized the U.S. government’s Main Street Lending program in a statement: “The Treasury Department’s inability to deploy the Main Street Lending program, with only an embarrassingly small fraction being distributed of the more than half a trillion dollar capacity allocated from the CARES Act, will go down in U.S. history as one of the worst bureaucracy blunders of economic policy. Thousands of businesses have or will go out of business because these funds were not doled out as mandated by Congress. The Main Street Lending Program has been a complete failure and provided no relief to the hotel industry, leaving 71% of hotels on the brink of closure and millions of jobs at permanent risk according to a recent AHLA survey. Congress should be outraged and immediately re-appropriate the unused US$455 billion in funds to provide targeted relief to severely distressed industries, such as the hotel industry. Congress must act immediately to pass additional grant programs for industries and workers that are facing irreparable harm without further assistance.”
Gleneagles to close until February
Gleneagles hotel is closing until February after Perth and Kinross in the U.K. have moved into level three of coronavirus restrictions. The 5-star hotel and golf resort in Auchterarder will close to guests from Friday until January 31. Its golf courses and membership facilities – including the clubhouse, equestrian school, shooting and fishing school and health club – will remain open, subject to government regulations. The hotel said it plans to protect all jobs during the closure and bring all staff back for the February reopening.
Mandalay Bay, Mirage hotels adopt partial closures
The hotel towers for Mandalay Bay and The Mirage on the Las Vegas Strip will be moving to partial midweek closures starting at the end of the month, according to MGM Resorts. The company confirmed that hotel operations will be closed Mondays through Thursdays, effective Monday, November 30, as demand remains soft amid the COVID-19 outbreak. Both properties’ casinos, restaurants and other amenities will remain open every day throughout the week.
Survey indicates future travel is a priority for Americans
American travelers have an abiding desire to travel, according to a recent poll by market research firm Destination Analysts. Nearly half of American travelers (47%) report that they would feel either happy or very happy to receive a travel-related gift this holiday season. Nearly 60% of respondents agree that getting a vacation scheduled in the next six months would make them feel there is something happy to look forward to. This comports with research by the Institute for Applied Positive Research, which found that 71% of respondents to its survey reported feeling greater levels of energy knowing they had a trip planned in the next six months.
Hotel feasibility will become critical for India in the COVID-19 era
Before investing millions of rupees of expensive capital, HVS writes that India hoteliers should spend an insignificant fraction of the sum on feasibility and ROI studies for a hotel and/or a mixed-use project to help determine the viability of the project. The rapidly evolving consumer behavior and demand fundamentals are expected to make a professionally prepared feasibility study even more critical than ever before.