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AAHOA

Update for Tuesday, September 1

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

  • Trepp Talk: Cash flow at hotels backing CMBS loans plunges in Q2
  • Tomorrow’s Virtual Event: Navigating the Road to Recovery in a Post-COVID-19 World – A Conversation with Best Western Hotels & Resorts
  • A Webinar Tomorrow: Unplugged with JF Capital Advisors, Part 3
  • Tomorrow's Webcasts: The CARES Act and how to become the ‘employer of choice’ on the slate
  • HotStats: How turning to benchmarking can stave off financial ruin
  • Arrivalist: 42.5 million Americans will hit the road for Labor Day holiday weekend

Trepp Talk: Cash Flow at Hotels Backing CMBS Loans Plunges in Q2

Cash flows at hotel properties that back CMBS loans so far have seen a 50% drop in annualized cash flow when compared with underwritten levels, as a result of the coronavirus pandemic, according to the latest Trepp report. Industry-wide occupancy dropped to a mere 21.6% in early April. In contrast, for all of last year, hotels operated at an average occupancy rate of 66.1%, according to STR. The cash flow drop was highlighted by JPMorgan Securities' CMBS research team,

which pored through the 2,329 conduit loans with a balance of $40 billion that so far have reported their second-quarter financials. While based on a relatively small sample, JPMorgan's findings could be indicative of how the performance of the collateral for the broad universe of CMBS hotel loans has been impacted by the pandemic. Full-service hotels suffered a 61% drop in cash flow when compared with underwritten levels, while extended-stay properties saw a 35% drop and limited-service a 44% drop. Read the full article here.

AAHOA has been hard at work advocating for America's hotel owners throughout this pandemic. But we need to keep the pressure on. You can help by signing this letter to ensure that hoteliers' priorities are front and center as Congress makes decisions on the next relief package.

Tomorrow’s Virtual Event: Navigating the Road to Recovery in a Post-COVID-19 World – A Conversation with Best Western Hotels & Resorts

Washington DC Area Regional Director Sandip Patel will host a live virtual event with Best Western Hotels & Resorts at 1 p.m. EDT tomorrow, September 2. Joining him will be COO Ron Pohl, CDO Brad LeBlanc, Senior Vice President and Chief Marketing Officer Dorothy Dowling, and Best Western owners and AAHOA Directors Nimisha Patel and Sawan H. Patel. HotStats’ David Eisen will moderate. Don’t miss it! Register now!

 

Upcoming Webinar: Unplugged with JF Capital Advisors, Part 3

How should hotel owners and asset managers be approaching the next six months moving into 2021? What is happening with the second wave of forbearance requests? Will the focus of brands and brand standards change post-COVID? What is driving valuations in the public hotel markets and how are hotel stocks being valued? Tune in at 12 noon EDT Thursday, September 3 for Unplugged with JF Capital Advisors, Part 3 to hear finance experts answer these and other burning questions that are top of mind for hotel owners and developers. Don’t miss it! Register now.

Tomorrow's Webcasts: The CARES Act and How to Become the ‘Employer of Choice’ on the Slate
Do you have questions about how the CARES Act applies to employees’ benefit plans? Join us at 1 p.m. EDT tomorrow, September 2 for Getting Back to Business: The CARES Act and Your Employee Benefit Plans as an accounting expert explains the key provisions of the CARES Act that impact employee benefit programs. You’ll also get essential information about retirement plan changes.

Then, return at 3 p.m. for Getting Back to Business: Strategies for Optimizing Your Organization – Compensation, Participation, and Recognition (CPR) to learn how a hotelier can become the “employer of choice” in their marketplace by providing shared governance, associate empowerment, a culture of recognition, and competitive compensation which includes wages, benefits, and incentives. Don’t miss out on these! Register now!

 

Register Now for These Other COVID-19 Webcasts on the Schedule
 

HotStats: How Turning to Benchmarking Can Stave Off Financial Ruin

It’s easy to panic when a financial crisis hits, like the one caused by the COVID-19 pandemic. Hotel owners might feel like the whole market has been pulled out from under them. However, there is always hope, even in the worst financial crisis. With hotel benchmarking, it’s possible to fight off financial ruin, even in the middle or during the aftermath of financial turmoil. Wondering how? HotStats takes a dive into ways hoteliers can use benchmarking to keep a hotel out of the red and steer operations to long-term profit amid a nightmarish market. Read the full article here.

Arrivalist: 42.5 Million Americans Will Hit the Road for Labor Day Holiday Weekend

Location data company Arrivalist projects that Labor Day holiday road trip volume will be down just 5.3% compared to last year. An estimated 42.5 million Americans will hit the road over the extended weekend. The data comes from the company's launch of an improved Daily Travel Index that now includes year-over-year insights. "Americans continue to seek respite on the road," Arrivalist Founder and CEO Cree Lawson said. "These latest projections are a promising sign for the travel industry." Read the full article here.