Visit www.aahoa.com/covid-19 for the latest info
Click here if you are having trouble viewing this message.
AAHOA

Update for Monday, June 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

  • Coalition Letter: AAHOA, others petition for changes to Main Street Lending Program
  • WSJ: Small businesses raced to spend PPP funds, but COVID-19 pandemic drags on
  • SBA: New policy documents on Paycheck Protection Program released
  • Virtual Event Tomorrow: A conversation with Red Roof on how the Economy segment survived COVID-19
  • Tomorrow's Webcasts: Mark your calendar for two webcasts to help you get back to business
  • IDeaS: New guide will help hoteliers be ready for revenue management’s “new normal”
  • STR: Hotel profitability improved in May, Limited-Service breaks even at 45% occupancy

AAHOA, AHLA, NABHOOD, LHA Petition Treasury, Fed for Changes to Main Street Lending Program

On Friday, AAHOA, AHLA, NABHOOD, and LHA sent a coalition letter to Treasury Secretary Steve Mnuchin and Federal Reserve Chairman Jerome Powell seeking adjustments to the Main Street Lending Program. The letter lauds the government for expanding the program, which is designed to give financial assistance to small business owners who have been decimated by the COVID-19 pandemic.

However, because of the way the program is constructed, most hotel owners are shut out from using it. The letter requests four specific actions that would give hoteliers access to the liquidity they need to survive.

Small Businesses Raced to Spend PPP Funds, But COVID-19 Pandemic Drags On

The federal government recently made changes to the Paycheck Protection Program that make it easier for small business owners to qualify for loan forgiveness. However, those changes came too late for many employers who followed the program’s original rules and quickly used up most if not all of the money, according to a recent article in The Wall Street Journal. For some businesses, the push to spend has had unexpected payoffs.

AAHOA Member Sandeep Thakrar, President of Neema Hospitality, which owns a dozen hotels in the mid-Atlantic region, brought back 150 of his roughly 200 workers, even though five hotels were temporarily closed. “We started deep cleaning. We went into every room, every nook and cranny,” said Thakrar, who developed a to-do list of roughly two dozen projects for each hotel. Read the full article here.

 

SBA, Treasury Release New Policy Documents on Paycheck Protection Program

Last week, the Small Business Administration and the Treasury Department released additional guidance on the Paycheck Protection Program. Among the new documents:
 

How to Calculate Loan Amounts
(Released June 26, 2020)


New question No. 10 on calculations for new self-employed individuals and revised questions 1, 2, 4, 5, 6, and 7 to reflect PPPFA

Interim Final Rule - Revisions to Loan Forgiveness IFR and SBA Loan Review Procedures IFR (Released June 22, 2020)

Interim Final Rule - Additional Eligibility Revisions to First Interim Final Rule (criminal justice reform provisions related to eligibility for those with a criminal record) (Released June 24, 2020)

Interim Final Rule - Certain Eligible Payroll Costs (specifically pertaining to fishing boat owners) (Released June 25, 2020)

Frequently Asked Questions document – FAQ #49 (Please note FAQs #12 and #20 have been revised) -Released June 25, 2020


For more information and updates, visit SBA.gov/PaycheckProtection or Treasury.gov/CARES

Virtual Event: How the Economy Hotel Segment Survived COVID-19: A Conversation with Red Roof and Owners
Tune in at 2 p.m. EDT tomorrow, June 30 for How the Economy Hotel Segment Survived COVID-19: A Conversation with Red Roof and Owners where we’ll examine how and why the economy and extended-stay segments fared better than all other sectors during the COVID-19 pandemic. AAHOA Treasurer Nishant (Neal) Patel will be joined by Red Roof CDO Phil Hugh and Franchise Owner Atul Patel on a panel moderated by David Eisen, HotStats Director of Hotel Intelligence, Americas. Email your questions in advance to franchise@aahoa.com.

Mark Your Calendar for Two Important Webcasts You Don’t Want to Miss
Communication has evolved during the COVID-19 pandemic. Join us at 11-11:30 a.m. EDT tomorrow, June 30 for Getting Back to Business: New Contract Conditions and Digital Messaging – Part 3 to learn the necessary conditions you need to include on all your sales contracts going forward. Then, at 1-1:30 p.m. EDT tomorrow, join us for Getting Back to Business: Hotel Valuation Outlook as of June 30, 2020 for an update on current hotel valuation so hoteliers can best chart their individual road to recovery.

IDeaS: New Guide Helps Hoteliers Be Ready for the ‘New Normal’ of Revenue Management

As the hospitality industry enters uncharted territory because of the coronavirus pandemic, hoteliers must look ahead and take action - fast. Growth in the industry is set to become even more complicated, with increased pressure on revenue managers. When the full-strength recovery finally happens, the “new normal” of revenue management will look drastically different. To help you be prepared, IDeaS, a revenue management firm, has developed a Ready for Revenue guide that outlines the need for a holistic approach and an automated system.

The guide also contains helpful tips to empower your hotel to become proactive and resilient.

STR: Hotel Profitability Improved in May, Limited-Service Breaks Even at 45% Occupancy

U.S. hotel gross operating profit per available room down 110.1% in May. That percentage change was a slight improvement from April’s decline of 116.9%. Additionally, limited-service properties showed positive profitability on average when surpassing 45% occupancy. Those are the main takeaways from STR‘s latest monthly P&L data release. “Make no mistake, profits are still down significantly, and in many cases, open hotels are struggling to turn a profit,” Joseph Rael, STR’s senior director of financial performance, said.

“However, consistent with the occupancy and RevPAR trends shown in our weekly data releases, hotels opened up more in May and saw improved business compared with the previous month. Read the full report here.