A report published The American Hotel and Lodging Association revealed that despite long travel during the post coronavirus pandemic, the hotel industry nationwide faced closures and severe revenue declines.
“The recovery path for the hotel industry is high with 21 of the top 25 U.S. hotel markets remaining in a depression or recession,” a news release Announcing the report says. “New data shows urban hotels are still in a‘ depression ’cycle while the overall U.S. hotel industry remains in a‘ recession. ’”
The release releases some important statistics from the report:
Urban markets, which rely on business from events and group meetings, continue to face a severe financial crisis as they are disproportionately affected by the pandemic disease. Urban hotels decreased 52% in room revenue in May compared to May 2019. For example, New York City, which remains in a state of disrepair, saw un-thirds of hotel rooms (42,030 rooms) wiped out by the COVID-19 strike, with nearly 200 hotels closing in the town.
The recent rise in summer leisure travel has boosted the hotel industry, but business and group travel, the industry’s largest source of revenue, will take much longer to recover. Business travel is complete and is not expected to return to 2019 levels until at least 2023 or 2024. Major events, conventions and business meetings have been canceled or also postponed until 2022.
The report details the U.S. cities most hit by pandemic lockdowns, with San Francisco topping the list with a 70 percent drop in “revenue per usable room.” – READ MORE
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