Reservations Begin to Rise Following Unprecedented Disruption of Hospitality Services; Hotel Investors Take Steps to Recover After Health Crisis
Hotels adapt after taking huge hit from health crisis. The rapid decline in travel stemming from the new coronavirus has had a profound impact on the U.S. hospitality sector. A drastic drop in room demand reduced national occupancy to nearly 20 percent in early April, lowering revenue per available room by more than 80 percent from where it was a year before. This historic shortfall in guests forced hotels to furlough staff and operate under a skeleton crew or close temporarily. Despite these constraints, many hotels are adapting to the new environment. Every major hospitality brand has implemented new cleaning procedures, and some properties are welcoming medical workers and individuals seeking a safe place to quarantine or work remotely. A small number of necessity travelers are also renting rooms. Weekly fundamentals have begun to marginally improve as a result but remain well below long-term averages. The road forward will depend greatly on how and when the health crisis is resolved.