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AAHOA

Update for Tuesday, June 9

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
 

  • Update: Senate not expected to move on next relief bill before end of July
  • EIDL: Committee on Small Business to meet to discuss EIDLs tomorrow
  • Webcasts: Join us tomorrow for a webcast on room revenue strategies
  • Event: ALIS Summer Update event series – early pricing ends this Thursday
  • Tomorrow: A Conversation with IHG and Marriott, a webinar from eCornell
  • STR: Impact of COVID-19 on hotel profitability webinar from STR, ALHA
  • Charts: What the industry’s recovery looks like according to 7 data sets
  • Resource: 8 strategies to get independent hoteliers on the path to profitability
  • Data: Baird/STR Hotel Stock Index rises 1.7% in May
  • HotStats: The effects of COVID-19 on profitability and F&B
  • #AAHOASTRONG: An AAHOA Member’s message on empathy, hope, and unity
 

Senate to Not Move on Next Coronavirus Relief Bill Before the End of July

Senate leaders recently said the next COVID-19 relief package will be the final major legislation this year aimed at alleviating economic stress related to the pandemic. They’ve also indicated that the next bill is likely to be taken up after the two-week July 4 break, indicating it’s “more likely” to happen after recess. However, Democrats are calling on Senate Majority Leader Mitch McConnell (R-KY) to pass the next coronavirus package before senators leave town.

White House economic advisor Larry Kudlow also said in an interview last week that “he and other administration officials have held informal, bipartisan conference calls with House and Senate leaders of both parties to exchange views on the next package.”

 

The Economic Injury Disaster Loan Program: A View from Main Street
The Committee on Small Business will hold a live-stream hearing at 1 p.m. tomorrow, June 10 to discuss the Economic Injury Disaster Loan program. The hearing will explore the benefits of the loans and grants, which are intended to help small businesses, independent contractors, and certain nonprofits that were adversely affected by the COVID-19 pandemic. They also will look at the challenges businesses face applying for and receiving the funds.

Hotel Owners & Conquering COVID: Phase 1. Exit - Room Revenue Strategies

The economy is reopening and some areas of the industry are beginning to trend up toward 50% occupancy. In light of this, hoteliers are starting to take a more strategic look at their ADR. Join us at 1 p.m. EDT tomorrow, Wednesday, June 10 for Hotel Owners & Conquering COVID: Phase 1. Exit - Room Revenue Strategies as we take a look at some best practices to manage your rate, inventory, and content. You’ll learn how to read future demand windows, what areas of market analysis can benefit hotels, and more. Register now.

ALIS: Summer Update In-Person Event Series – July 13, 16, and 20 in Locations Across the U.S.

Mark your calendars. ALIS is packing its bags and hitting the road this July with unique events across the United States. Each location will feature its own distinctive program and networking reception. With three events taking place in July – in New York, NY, Nashville, TN, and Dallas, TX – topics will cover hotel capital markets, views from the boardroom, and hotel development. AAHOA is proud to co-host and collaborate with BHN Group to produce the Dallas and Nashville events, and you should act now to secure early-bird pricing. Prices go up after Thursday, June 11.

 

Cornell Webinar: A Conversation with IHG, Marriott Leaders

Join eCornell at 10 a.m. EDT tomorrow, Wednesday, June 10 as two respected leaders in the hospitality industry explore how to move forward in post-pandemic America. Hosted by The Hotel School at Cornell University, Leading Our Industry Forward: A Conversation with Two Global Industry Leaders will feature Keith Barr, CEO, InterContinental Hotel Group, and Anthony Capuano, Group President - Global Development, Design, and Operations Services, Marriott International. They will discuss what industry professionals need to understand and how they need to prepare for a new way of doing business. Register now.

 

Webinar: The Impact of COVID-19 on Hotel Profitability

In the wake of the COVID-19 pandemic, understanding your hotel’s profitability is more vital now than ever. To answer that call, STR recently launched a monthly P&L reporting tool to benchmark all revenue departments, expenses, and labor costs. Join AHLA at 2 p.m. EDT tomorrow, Wednesday, June 10 for The Impact of COVID-19 on Hotel Profitability as Raquel Ortiz, Assistant Director of Financial Performance, takes an in-depth look at April profitability metrics, analyzes trends from previous downturns, and discusses what we can expect going forward. Register now.

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What Hospitality Recovery Looks Like in 7 Charts

A recent article published on bar & restaurant shows what the hospitality industry’s recovery looks like across many metrics, including stock prices, unemployment and job numbers, hotel occupancy, OpenTable reservations, and airline travel. The article notes that while the U.S. stock market has nearly gained all of its losses on the three major indexes, the hospitality industry still has a long road to recovery given how hard it's been hit. The key performance indicators can give an idea of where hospitality recovery is headed.

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New Guide Lays Out 8 Strategies to Get Independent Hoteliers on the Path to Profitability
Generating revenue from different channels is essential to the profitability of any independent hotel. Yet, many hoteliers don’t like selling, don’t embrace the power of distribution, don’t work on pricing strategies, and on and on. In his Independent Accommodation Business Owners Guide to Revenue, Distribution, Sales, and Marketing, Suresh Subramaniam, CEO of Innov8 Hospitality Solutions and CEO/Founder of U Hotel Group, has identified eight strategies independent hoteliers can implement to transform their business.

The guide also features focus questions and quick action points to get hoteliers on the path to profitability.

 
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Baird/STR: Hotel Stock Index Rises 1.7% in May

The Baird/STR Hotel Stock Index rose 1.7% in May to a level of 3,232. Year to date through the first five months of 2020, the stock index was down 38.7%.

“Hotel stocks were relatively flat in May, which reflected underperformance during the first part of the month but a sharp reversal in the back half of May as the broader reopening trade gained momentum and stock prices recovered,” said Michael Bellisario, senior hotel research analyst and director at Baird in a STR press release.

“Industry data continues to be less bad on a sequential weekly basis, and investors’ worst-case zero-occupancy scenarios, which included significant monthly cash burn rate assumptions, have not materialized as initially feared.”

 

HotStats: The Effects of COVID-19 on Hotel Profitability, F&B

COVID-19 put a major dent in the health of the global hotel industry. Within weeks, travel restrictions and lock-down orders hugely decreased demand – lowering revenue and profit to unprecedented levels, with harsh ramifications for F&B. A review of March data by HotStats revealed just how drastic the decline has been. In particular, F&B revenue per available room plummeted by 66.5% an even deeper decline than the 64.4% recorded in RevPAR. Much of this was, as to be expected, a result of the cancellation of major events.

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An AAHOA Member’s Message of Empathy, Hope, and Unity

Sunny Tolani, CEO of Prince Organization and AAHOA Member, penned a letter to his entire organization encouraging them to remain hopeful and to try to feel purposeful as they continue to try to recover from the ravages of the COVID-19 pandemic. His message of empathy, hope, and unity of purpose is worth sharing. As Hotel Business Editor-in-Chief Christina Trauthwein said, “Sometimes, as a leader, just showing empathy to your employees is what’s needed to keep spirits up and people motivated, despite the challenges.” Read it here.