Frightening declines last week in US performance
Showing further effects of the COVID-19 pandemic, the U.S. hotel industry reported significant YOY declines in the three key performance metrics during the week of March 15-21, according to STR. In comparison with the week of March 17-23, 2019, occupancy fell 56.4% to 30.3%, ADR was down 30.2% to US$93.41, and RevPAR fell 69.5% to US$28.32.
Aggregate data for the top 25 markets showed steeper declines: Occupancy fell 66.3% to 26.2%, ADR was down 35.2% to US$105.40 and RevPAR fell 78.2% to US$27.59.
New York City’s drop in RevPAR (-86.5% to US$26.98) was due primarily to the second-steepest decrease in occupancy (-80.5% to 16.8%). San Francisco/San Mateo, California, recorded the worst declines: Occupancy fell 80.7% to 16.6%, ADR fell 44.7% to US$151.25 and RevPAR fell 89.3% to US$25.08.
CBRE’s new forecast
CBRE Hotels Research reported on Wednesday that it expects U.S. RevPAR will decline by 37% in 2020, with a contraction of more than 60% in Q2; demand will decline by 28% in 2020; ADRs are expected to decline 11% in 2020. Properties that primarily cater to discretionary travel will be affected most, i.e. luxury, upper upscale, urban, airport, and resort properties.
No stimulus money for Trump Organization
The Trump Organization and its hotels are barred from getting loans or investments under the new US$2 trillion coronavirus stimulus deal, according to U.S. Senate Minority Leader Chuck Schumer. The company, which U.S. President Donald Trump has not divested, is run by his two elder sons, Donald Jr. and Eric. Lawmakers, and the White House reached an agreement early Wednesday after days of negotiations that added to uncertainty in global markets.
Chinese ready to travel by May
A recent China-based survey showed that close to half of respondents expect to travel before the end of June if the COVID-19 epidemic does indeed abate, China Youth Daily reported. Some 16% of those polled said they would choose the month of May for trips, the Beijing-based newspaper said, citing data from a newly released tourism report, jointly released by the China Tourism Academy and Chinese OTA trip.com.
Horwath surveys Indonesia hoteliers
Horwath HTL Indonesia, in conjunction with the Indonesian Hotel & Restaurant Association, conducted a survey to gauge the initial impact of the COVID-19 pandemic. The survey, open from March 6-13, had the following key takeaways:
- 70%-75% of hoteliers believe the impact will be felt for less than six months but that it’s “much worse” than any previous health scares
- Performance for the first half of the year is expected to be down 25%-50%
- Domestic corporate, FIT and group was expected to bounce back post-pandemic
- A worrying 40%-plus believed that foreign FIT and group would never recover
- Major business concerns: Labor costs (38%), utilities (28%) and taxes (26%)
- Government assistance sought: Tax rebates (93%); build innovative tourism campaigns (83%); reallocate MICE budgets to financially assist hotels (77%)
HSMAI ROC Americas 2020 rescheduled
Due to the worldwide uncertainty surrounding the impact of the COVID-19 pandemic, HSMAI ROC Americas 2020 has been rescheduled for October 26-27 in San Antonio, Texas. The main ROC program will be Monday, October 26, at the Grand Hyatt San Antonio.
North American destination organizations feel the pain
New data on the impact of COVID-19 on North American destination organizations was released today by MMGY Travel Intelligence in partnership with Destinations International Foundation. Key findings include:
- Destination organizations are now reporting a strong expectation that coronavirus will have an extreme impact on their business over the next six months;
- Reports of coronavirus-related cancelations and postponements of conferences, meetings and events jumped from 40% to nearly 100%;
- 80% of destination organizations surveyed have reduced or postponed sales and marketing spend.
Chicago-based Oxford lends a hand
Chicago hotel owner Oxford Capital Group is turning over 1,100 downtown hotel rooms to the city as part of a move to provide temporary housing for people who need to be isolated to prevent the coronavirus spread. Oxford said it will house guests without virus symptoms, including first responders, at one downtown hotel it manages, Hotel 166, and four that it owns: Hotel Cass, Hotel Essex, Hotel Julian and Hotel Felix. The move is part of a larger plan that city and state officials unveiled March 23 to rent thousands of hotel rooms to aid area hospitals.