AHLA Data Shows 70 Percent of Hotel Employees Laid Off or Furloughed
May 4, 2020
As much as we’re all hungering for good news right now, the staggering numbers reporting the severity of the COVID-19 crisis for the hotel industry can’t be spun in a positive light.
New data from the American Hotel & Lodging Association shows that 70 percent of hotel employees have been laid off or furloughed, as eight in 10 hotel rooms across the country remain empty. This puts the impact of COVID-19 on the travel industry at nine times worse than 9/11, with forecasted occupancy rates for this year hitting record lows worse than rates from 1993 during the Great Depression.
“The human toll of this public health crisis has been absolutely devastating for the hotel industry…. Our priority is rehiring and retaining our hardworking employees who power our vibrant industry,” said Chip Rogers, president and CEO of AHLA.
He continued, “Hotels were one of the first industries affected by the pandemic and will be one of the last to recover. The CARES Act was an important first step… but we need Congress to make important changes to the program to reflect the current economic reality and help the employees in the industries that have been impacted the most.”
While some properties have remained in operation during the pandemic, they are operating with minimal staffing. AHLA reports that on average, full-service hotels are using 14 employees to keep things running, down from 50 employees before the crisis. Resort hotels (which often operate seasonally based on geographic location) are down to five employees per resort per day, down from about 90 per day in mid-March.
The AHLA report states that $2.4 billion has been lost in weekly wages due to the crisis (citing data from Oxford Economics and Hotel Effectiveness), and nearly 3.9 million total hotel-supported jobs have been lost.
“The hotel industry is at a critical juncture. We need more resources to survive this unprecedented time,” said Rogers. “Additional funding is vital for small business owners across America, including tens of thousands of small business hoteliers, to help them keep their doors open and rehire and retain millions of employees.”
See a fact sheet with stats from the full report here.
Partner Voices
Dallas already boasts 35,000 hotel rooms, award-winning global cuisine, and a walkable downtown. But we are just getting started.
Visit Dallas is thrilled to announce that the city of Dallas is doubling down with a massive new convention center and entertainment district. Featuring 800,000 square feet of exhibit area, 260,000 square feet of meeting rooms, and 170,000 square feet of ballroom. The center will connect business travelers with dining and shopping options in the popular Cedars District means more places to get down to business, and even more ways to unwind.
“Dallas is already a great meetings and conventions destination, with the accessibility of two major airports, affordable labor, and an outstanding hotel product,” said D. Bradley Kent, Visit Dallas senior vice president and chief sales officer. “The new center and Convention Center District will enhance Dallas’ competitive position and are exactly what our customers’ need and have been asking for."
What’s New – AT&T Discovery District
Located in the heart of Downtown Dallas, this new district on the AT&T corporate campus is tailor-made for groups of all sizes. It boasts a multi-sensory experience, including outdoor event space, the AT&T Theater, and multiple dining outlets including JAXON Beer Garden and The Exchange, a bustling food hall.
Hotels Coming Soon
Names like the JW Marriott (Downtown), lnterContinental Dallas (Uptown), and Hotel Swexan (Uptown) are adding luxury amenities and bountiful event spaces. The projects will debut in 2023 and beyond.
JW Marriott
This new, 15-story, 283-room hotel will open in the heart of the city’s downtown Arts District this year. The property features a 25,000-square-foot grand ballroom, as well as a spa, restaurant, lobby bar, fitness center, and a rooftop pool deck and bar.
InterContinental Dallas
Located in Cityplace Tower in Uptown, InterContinental Dallas will feature sweeping panoramic views of the Dallas skyline. Guests will enjoy spacious, high-end rooms and amenities, including more than 21,000 square feet of event space.
Hotel Swexan
Hotel Swexan, a new, 22-story luxury property, is rising in Uptown’s Harwood District and will make its mark on the Dallas skyline. Opening this year, it is a sculptural building with cantilevered upper floors, as well as a 75-foot rooftop infinity-edge swimming pool and a hidden underground lounge.
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