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AAHOA

Update for Friday, May 29

AAHOA is bringing you the latest information as it relates to COVID-19 and your business.

Help AAHOA help hotel owners by sharing this update with owners in your network, whether they're AAHOA Members or not. Turn to AAHOA's Facebook, LinkedIn, and Twitter accounts for the latest.

 

CONTENT FOUND IN THIS UPDATE

  • Message: AAHOA President & CEO updates from this week
  • Coalition Letter: AAHOA joins coalition asking Congress to support Clean Start: Back to Work Tax Credit
  • OSHA: USDOL releases alert providing employers with a detailed social distancing plan for the workplace
  • USDOL: 2.1 million new unemployment claims filed last week
  • Webcasts: Check out next week’s lineup
  • Virtual Events: Save the date for three virtual events coming up next week
  • On-Demand: AAHOA Vice Chairman on recovery in Marcus & Millichap webcast
  • CBRE Webinar: Econometric Advisors Flash Call Series on hotel forecast and overview
  • Report: Developing a crisis response that fits your business needs
  • STR: More positive signs for week ending May 23
  • Study: Memorial Day weekend travel spiked showing signs of recovery
  • Data: COVID-19 impact on hotel profitability “historic” in April
 

Dear AAHOA Members,

 

In the face of our industry’s challenges, I am confident AAHOA will continue to adapt and move forward because our community is #AAHOASTRONG. At AAHOA, we remain focused on our mission to provide the most up to date information and resources to help guide our members through the reopening phases of our nation’s economy.

 

Last week, I joined other hospitality experts on the “Saving the Hospitality Industry with Technology” panel at software firm EagleCheck’s REIMAGINE 2020 global blockchain conference.

During this event, we shared insights and discussed the state of our industry while exploring the benefits of innovative technologies and how they can improve the hospitality industry. You can watch the event here.

 

Yesterday, the House passed the Paycheck Protection Program Flexibility Act in a landslide bipartisan vote. The bill is headed to the Senate. Click here to tell your senators to support small businesses by supporting this bill.

 

We are also following the Clean Start: Back to Work Tax Credit Act, a bill which will help businesses deduct some costs associated with cleaning which will help businesses protect their employees and guests from further spread of COVID-19. You can read more about this tax credit in our coalition letter to Congressional leadership.


I want to thank all of you for communicating and working with AAHOA as we lead our industry during this challenging time. We are strongest together, and we will recover together.

 

Cecil P. Staton

AAHOA President & CEO

AAHOA Advocates for the Clean Start: Back to Work Tax Credit in Recent Coalition Letter

As mentioned in the message above, yesterday, May 28, AAHOA along with its coalition partners, sent a letter to leaders of the U.S. House of Representatives and the Senate majority leader urging them to support the Clean Start: Back to Work Tax Credit as a suggested provision for inclusion in the next stimulus bill. The Clean Start: Back to Work Tax Credit would create a tax credit per business entity to help defray the unforeseen and increased cleaning costs associated with fighting the coronavirus.

The credit would be temporary, capped, and used to help offset the costs of cleaning services, cleaning products, and sanitary-related equipment, as well as obtaining certification in cleaning.

U.S. Department of Labor Issues Alert on Social Distancing to Keep Employees Safe at Work During the Coronavirus Pandemic

The Occupational Safety and Health Administration (OSHA) released an alert providing employers with a detailed social distancing plan for the workplace to protect workers from exposure to the coronavirus. Among the safety measures included are: isolating workers who begin to show symptoms until they leave to seek medical care or quarantine at home;

implementing flexible working options (e.g., working from home or staggered shifts); if feasible, staggering breaks and rearranging seating in lounge spaces maintain physical distances, and more. The new alert is available for download in English and Spanish.

 

2.1 Million New Unemployment Claims Filed Last Week

Yesterday, the U.S. Department of Labor reported that 2.1 million new unemployment claims were filed last last week. Together with the data over the last 10 weeks, it brings the total number of U.S. workers in pursuit of financial assistance to 41 million – which is equal to a quarter of the country's workforce. According to the U.S. Chamber's interactive unemployment claims map, there are 33 states with more than 20% of employees that have filed a claim, with 10 states reaching more than 30%.

AAHOA COVID-19 Webcast Series: Check Out Next Week’s Lineup

Last week, we were excited to announce that we’ve published 100 webcasts to help hoteliers navigate COVID-19. However, we continue to work on new content to bring you the latest information on the topics that matter. Check out AAHOA’s 100+ webcasts in our library, and make plans to join us for one of next week’s webcasts, listed below. If you have any recommendations on topics you’d like to see AAHOA cover, email your suggestions to COVID19@aahoa.com.

Save the Date for Next Week’s Virtual Events

AAHOA has three upcoming virtual events on the books. Designed to bring hoteliers together to discuss the latest implications post-COVID-19, don’t miss a special event for Young Professional Hoteliers to discuss hotel forecasting and performance, Independent Hoteliers for “Survival of the Fittest,” and a listening session with special guests Reps. Virginia Foxx (R-NC-05) and Fred Keller (R-PA-12) for an exclusive update on movements within the U.S. House of Representatives with regards to COVID-19 relief and recovery. Learn more about how to join these exclusive events here.

 

AAHOA Vice Chairman Weighs in on Recovery, More in Marcus & Millichap Webcast

AAHOA Vice Chair Biran Patel joined other industry professionals in examining the impact of COVID-19 during the “Marcus & Millichap Hospitality Investment Outlook” webcast on Wednesday. Patel and the expert panel took an in-depth look at what the hospitality industry recovery looks like, which hospitality segments offer opportunity, the transactional and financing climate, and more. Watch on demand.

 

CBRE Econometric Advisors Flash Call Series: Hotel Sector Forecast and Overview

Register to join CBRE Econometric Advisors and CBRE Americas Research next week, at 12 p.m. EDT Monday, June 1 for a flash call series taking an in-depth look into CBRE’s macro economic outlook, forecasts, and trends. The Macro Hotel Forecast and Overview call will be presented by a CBRE EA Economist and CBRE Americas Research Sector Head. The calls are scheduled for roughly 50 minutes, with additional time allotted for Q&A. CBRE invites you to submit your questions in advance during registration. Register now.

virtual

eHotelier Report: Businesses Must Develop a Crisis Response That Fits Their Own Needs

The COVID-10 pandemic has fundamentally changed the way we live our lives, and that revolution will change our behavior in the post-pandemic world. The impact on the hospitality industry has been profound and will continue to be for some time. eHotelier, a hospitality professional development company, has released a report designed to prompt and support the hospitality and tourism industries’ thinking in response to this pandemic.

The aim is to promote “detailed thinking, discussion, and debate” and long-term resilience in hospitality.

virtual

STR: U.S. Hotels Show More Positive Signs for Week Ending May 23

STR data ending with May 23 showed another small rise from previous weeks in U.S. hotel performance. Year-over-year declines remained significant although not as severe as the levels recorded in April. “The steady climb in national occupancy continued, and to no surprise, the highest levels were recorded on Friday and Saturday ahead of Memorial Day,” Jan Freitag, STR’s senior VP of lodging insights, said.

“Occupancy gains continue to be led by popular leisure markets like the Florida Panhandle, Mobile, Myrtle Beach, and Daytona Beach.

We even saw a weekday-to-weekend ADR premium in higher occupancy markets.

May 17-23, 2020 (percentage change from comparable week in 2019) data:
 

  • Occupancy: 35.4% (-50.2%)
  • Average daily rate (ADR): US$80.92 (-39.7%)
  • Revenue per available room (RevPAR): US$28.67 (-69.9%)
 

Study: Memorial Day Weekend Travel Spiked at 48.5 Percent

Encouraging news for the hospitality industry came out of the Memorial Day long weekend. According to Arrivalist’s Daily Travel Index, road trips increased by 48.5% over the previous weekend. The index measures consumer road trips of 50 miles or more in all 50 U.S. states. Though well below pre-coronavirus levels of previous years, the numbers are cause for optimism for the hospitality industry, which has been one of the hardest hit by the COVID-19 pandemic. It might be a sign that the industry is on its way to recovery.

 

STR: The Impact of COVID-19 on Hotel Profitability in April Deemed ‘Historic’
April proved to be a disaster for the hotel industry, as the U.S. hotel gross operating profit per available room fell 116.9% during April 2020, according to the latest report from STR. “Whereas only the later portion of March was affected, April was the country’s first full month in the COVID-19 world, and the impact on U.S. hotel profitability was historic,” Joseph Rael, STR’s senior director of financial performance said. “Houston (-135.3%), Chicago (-134.6%), and San Francisco/San Mateo (-133.6%) saw the steepest GOPPAR declines, while on a class level, Luxury saw the worst decrease (-124.5%).