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AAHOA

Update for Thursday, July 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

What Options Do CMBS Borrowers Have for Relief from the Economic Effects of COVID-19?

Hoteliers, who have enjoyed a long run of healthy growth, are now scrambling to cover loan payments, support employees, and maintain operations as a result of the COVID-19 pandemic that has decimated the industry. Government programs can provide some relief to small businesses, including many hotel owners, but borrowers with loans through the Commercial Mortgage Backed Securities (CMBS) market face specific challenges as they navigate these unprecedented economic conditions.

Rushi Shah, principal and CEO of AAHOA Club Blue Member Mag Mile Capital, examines these challenges and offers some options. Read the full article here.

Save the Dates: Join Us Next Week for Georgia and Arkansas Virtual Events

Join us next week for intimate meetings with AAHOA’s two newly appointed Regional Directors. At 4 p.m. EDT Tuesday, July 14, Georgia Regional Director Vik Zaver share what’s top of mind as a hotelier during AAHOA Georgia Region: An Interactive Q&A with Your Regional Director. If you have a topic you’d like to see addressed at the virtual event, submit your questions in advance here.

Then, at 3 p.m. EDT Wednesday, July 15, Arkansas Regional Director Danny Patel will do the same during AAHOA Arkansas Region: An Interactive Q&A with Your Regional Director. Anything top of mind you’d like to see discussed during the virtual event, submit your questions in advance here.

Join Us: Getting Back to Business: STR Update on the Impact of COVID-19 on U.S. Hotel Performance

Join us at 3 EDT Friday, July 10 for Getting Back to Business: STR Update on the Impact of COVID-19 on U.S. Hotel Performance as Jan Freitag, SVP, STR, analyzes the most recent weekly hotel performance data. You also will learn about current areas of strength and opportunity as the hospitality industry continues to navigate through uncertainty. You don’t want to miss it, so register now.

HotStats: Breaking Even and the 5 Stages of Grief

Hotel owners have been made to suffer through the five stages of grief – denial, anger, bargaining, depression, and acceptance – at the cruel hands of COVID-19. But as bad as it got, at its worst, hoteliers entered the final stage, acceptance, with aplomb and a fierce determination to forge ahead. One way HotStats has tried to help is by running break-even analyses, which allow hoteliers to see what occupancy rate will result in break-even profit. You’re not making money, but then again, you aren’t losing any, either.

The truth is, selling rooms during COVID-19 is hard enough; selling anything other than a room is next to impossible. Such was the case, so HotStats decided to run its analysis again, only this time it focused solely on revenue obtained from rooms and nothing else for U.S. hotels.

See full report here.

 

The Highland Group/Hotel Business: Extended-Stay, Short-Term Rentals Lead Recovery

While economy extended-stay hotels’ average occupancy was down 5.3% in May compared to May 2019 (73.8%), this is 40 percentage points higher than the 33.1% STR reported for the overall hotel industry. And the short-term rental sector also is faring significantly better than hotels amid the COVID-19 pandemic. These are the most significant findings in the new U.S. Short-Term Rental Market Report 2020 by The Highland Group.

Economy extended-stay hotel RevPAR was down 11.4% over the same period compared to more than 70% for the overall hotel industry. Short-term rental demand and revenues declined 15% and 22%, respectively, year-to-date through April, compared to the same period in 2019. The corresponding declines for the hotel industry, meanwhile, were 32% and 35%, according to STR. Even more surprising, in 20 of the 50 largest markets, short-term rental demand actually increased year-to-date through April 2020. See full report here.