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Special Report

Coronavirus Hospitality Special Report

2020 Outlook

Coronavirus Alters Outlook for U.S. Hotel Sector as Investors Cautious, Face Significant Short-Term Headwinds; New Federal Stimulus Package Delivers Lifeline to Severely Impacted Sector

Growing health crisis pauses economic growth. The rapid and unanticipated spread of the new coronavirus (COVID-19) has significantly disrupted everyday life. Interruptions to global supply chains and the closure of many businesses nationally will curb consumer spending and lead to higher unemployment in the short term, weighing on GDP in the second quarter and possibly longer. Past pandemics such as SARS and H1N1 “swine flu” suggest that the coronavirus could take up to six months to stabilize unless the known facts drastically change. The leisure and hospitality sector will be disproportionately affected as many of the precautions being taken directly impact travel and hotel use. In response to these costs, multiple arms of the federal government are enacting new policies to bolster the economy, highlighted by a major new stimulus package
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