Report: 21 of Top 25 U.S. Hotel Markets in Depression or Recession
A new report released by the American Hotel & Lodging Association (AHLA) shows that despite a recent uptick in leisure travel, 21 of the top 25 U.S. hotel markets remain in a depression or recession.
Urban markets, which rely heavily on business from events and group meetings, continue to face a severe financial crisis as they have been disproportionately impacted by the pandemic, according to the AHLA. Urban hotels were down 52% in room revenue in May compared to May 2019. The AHLA reports that recent uptick in leisure travel for summer is encouraging for the hotel industry, but business and group travel, the industry’s largest source of revenue, will take longer to recover.
“While some industries are starting to rebound as COVID-19 restrictions ease across the country, the U.S. hotel industry is still in a recession, with the hardest hit markets in a depression,” said Chip Rogers, president and CEO at AHLA. “While many other hard-hit industries have received targeted federal relief, the hotel industry has not. We need Congress to pass the bipartisan Save Hotel Jobs Act so hotels in the hardest hit regions, especially urban markets, can retain and rehire employees until travel demand, especially business travel, comes back to pre-pandemic levels.”