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AAHOA

Update for Wednesday, June 10

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

  • Small Business Hearing: AAHOA weighs in on industry priorities for EIDLs
  • SBA: Further clarification on 5-year maturity with the PPP Flexibility Act
  • Main Street Lending Program: Federal Reserve expands program to include more small, medium businesses
  • Visit America Act: Senators introduce bill that would initiate a federal strategy for the ailing travel and tourism industry
  • Virtual Event: Tomorrow’s conversation with Marriott on owning, operating a hotel post-COVID-19
  • Hotel Optimization: Leaders share advice on new normals on Day 1 of the 3-day virtual event
  • Webcast: Learn how to be ADA compliant in the age of social distancing
  • Hotel Recovery 2020: New downloadable resource on optimizing distribution and channel mix for recovery
  • Survey: Half of travelers plan to take next vacation in 2020
  • Deloitte: Firm explores findings for insights into the trajectory of leisure travel in the U.S.
 

AAHOA Weighs in on Industry Priorities Ahead of Today’s Committee on Small Business Hearing

As previously reported, today the Committee on Small Business held a hearing, “The Economic Injury Disaster Loan Program: A View from Main Street,” at 1 p.m. EDT. In advance of the hearing and on behalf of AAHOA Members, we met with members of the Small Business Committee to discuss priorities and frustrations with the EIDL program. In a letter sent to Chairwoman Velazquez and Ranking Member Chabot in advance of the hearing,

AAHOA summarized these points including how it remains a source of considerable frustration that there has been no announcement as to when the agricultural-only loan window will close or when other small businesses may begin to apply. Read the entire letter from AAHOA.

 

Lending Update from the SBA: Further Clarification on Five-Year Maturity with the PPP Flexibility Act

Late yesterday, the SBA issued an update for borrowers and lenders clarifying that the maturity of all Paycheck Protection Program (PPP) loans based on the enactment of the Paycheck Protection Program Flexibility Act of 2020. Guidance states that the maturity of all loans approved on or after June 5, 2020, will be for five years. The SBA loan system has been updated to reflect that all loans will automatically reflect the five-year maturity when submitted and approved.

Loans approved and/or funded prior to June 5, 2020, with the two-year maturity may be extended by the lender and borrower mutually agreeing to a five-year maturity. Formal guidance on the changes to the CARES Act are forthcoming from the SBA.

Federal Reserve Expands Main Street Lending Program to Include More Small, Medium Businesses

The Federal Reserve Board on Monday expanded its Main Street Lending Program to allow more small and medium-sized businesses to be able to receive support. The Board lowered the minimum loan amount, raised the maximum loan limit, adjusted the principal repayment schedule to begin after two years, and extended the term to five years, providing borrowers with greater flexibility in repaying the loans.

“The expansions announced yesterday to the Main Street Lending Program are the result of an extensive comment period, and are designed to better meet the needs of small and medium-sized businesses,” U.S. Treasury Secretary Steven T. Mnuchin said in a statement. “This should help support a broad-based economic recovery as the country reopens.” To learn more about the Main Street Lending Program, access U.S. Travel Association’s recently updated fact sheet.

 

Sullivan, Schatz, and King Introduce Visit America Act (S. 3831)

U.S. Senators Dan Sullivan (R-Alaska), Brian Schatz (D-Hawaii), and Angus King (I-Maine) recently introduced the Visit America Act S. 3831. Setting a national tourism target of 116 million annual foreign travelers to the United States by 2028, the bill will formally authorize the U.S. Travel and Tourism Advisory Board and create a high-ranking position within the Department of Commerce – of which the main focus will be boosting America’s travel and tourism industry.

Additionally, this new legislation will require the development of a recovery strategy to help the travel and tourism industry better recover from COVID-19.

Tomorrow’s Can’t-Miss Virtual Event: Owning and Operating Hotels in a Post-COVID-19 World: A Conversation with Marriott
The COVID-19 pandemic has radically altered the way the hotel industry has to service guests, staff properties, and transact deals, and brands and owners alike have had to adjust. Join us at 2 p.m. EDT tomorrow for a can’t-miss virtual event, Owning and Operating Hotels in a Post-COVID-19 World: A Conversation with Marriott, as AAHOA Treasurer Vinay Patel, Washington DC Area Regional Director Sandip Patel, Marriott SVP, Owner & Franchise Services Karen Finberg,

and Marriott Chief Development Officer Eric Jacobs detail the changes they're making. Moderated by HotStats Director of Hotel Intelligence, Americas, David Eisen, the panel will discuss what they're doing to tackle the challenges now and ahead to succeed in this strange new landscape. Have a question that you'd like answered during the event? Email your questions in advance to franchise@aahoa.com.

 

Hotel Optimization Day 1: Leaders Share Advice on New Normals

AAHOA President and CEO Cecil P. Staton opened the first day of Hotel Optimization detailing how the industry is facing its greatest challenge in a generation. “The COVID-19 pandemic is putting hotels under a financial stress greater than what we witnessed after 9/11 and the 2008 financial crisis,” he said. “But we're a resilient industry, and we will come out of this crisis stronger than before.”

The first session focused on how hoteliers connect and communicate with their employees, especially as the industry returns and workers must make tough decisions about their careers and their safety. AAHOA Treasurer Vinay Patel said that clear and accurate communication is the key to maintaining positive relationships between workers and management. The three-day virtual event, developed in partnership with AAHOA, is designed to gain clear insights, opinions, and forecasting to help hoteliers better understand their options of getting back to profitability. Register for Day 3 here.

Hotel Owners & Conquering COVID: ADA Compliance in a Social Distancing Era

As hotels implement social distancing and other measures aimed at reducing the spread of COVID-19, it is essential that they also consider how these new measures impact guests with disabilities and adjust those measures accordingly. Join us at 11 a.m. EDT tomorrow for Hotel Owners & Conquering COVID: ADA Compliance in a Social Distancing Era to learn how hoteliers can meet the new COVID-19 safety guidelines while also being ADA compliant. Register now.

 
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Hotel Recovery 2020: Hoteliers Must Optimize Distribution and Channel Mix to Recover

Today, hoteliers grappling with the business impact of the COVID-19 pandemic are faced with a difficult distribution challenge: On one hand, there is a short-term need for the revenue obtained by putting heads in beds; this is the lifeblood that keeps staffers employed and the lights on. But on the other hand, there are also long-term profitability and market value considerations, which often necessitate a more stringent distribution approach.

In its “A Clean Start to Hotel Distribution Post COVID-19” report, Hotel Recovery 2020 examines why recovery hinges on operators remembering past lessons and remaining steadfast on optimizing distribution and channel mix.

 
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Travel Leaders Network Survey: Half of Travelers Plan to Take Next Vacation in 2020

Good news on the travel front: When the Travel Leaders Network asked 2,700 people when they plan to take their next vacation, 18% said this summer, 24% chose fall, 8% plan to travel during the upcoming holiday season, 43% opted for 2021, and the remainder said 2022. The survey also found that nearly half of those who said they will travel this year said they plan to fly to their next vacation destination (45%), while 25% will drive. Under one-fifth (18%) said they plan to cruise.

 

Deloitte: Looking to the Recovery of Leisure Travel Demand

The global travel industry has survived a number of pandemics that have majorly impacted the health of its businesses. While cyclical and economic downturns are to be expected over time, it’s been more than a 100 years since both these occurrences were as interconnected as they have been for the better part of this year, so far. With consumers facing both a health and a financial crisis simultaneously, it has become difficult to gain insight into when vacation spending might return to “normal.” Deloitte Insights explores findings from its Global State of the Consumer Tracker and InsightIQ business intelligence platform for insights into the trajectory of leisure travel in the United States.