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Your Weekly AAHOA Wrap-Up for Friday, Jan. 15, 2021

Message from the President & CEO

AAHOA Members,

Yesterday afternoon, President-elect Joe Biden announced a $1.9-trillion pandemic relief package, which his administration plans to push in the opening days of his presidency. Among funding for health care, schools, and vaccine distribution, there is roughly $400 billion in total funding proposed for state and local governments and small businesses. AAHOA will keep our members informed on the Biden proposal going forward.

The Small Business Administration released more information of the application process for the Paycheck Protection Program for lenders and borrowers earlier this week. I encourage all AAHOA Members seeking to participate in the PPP to contact your lenders if you have not already done so. Visit the AAHOA website, or scoll to the bottom of this email, for more information.

We appreciate your engagement and support and will continue to keep you well-informed of political developments and small-business assistance in the coming weeks. Stay well and have a great weekend.

Cecil P. Staton

AAHOA President & CEO

Top 10 Things to Know This Week

STR: U.S. Weekly Hotel Occupancy Falls Back Below the 40% Mark

U.S. weekly hotel occupancy fell back below the 40% mark, according to STR‘s latest data through January 9. January 3-9, 2021 (percentage change from comparable week in 2020):

Occupancy: 37.0% (-28.3%)
ADR: $87.97 (-27.1%)
RevPAR: $32.59 (-47.7%)

The previous week’s occupancy was lifted by New Year’s travel. As that holiday travel dissipated, TSA checkpoint counts and hotel room demand each declined by roughly 1.3 million in a week-over-week comparison.

Read Full Report

Marcus & Millichap Special Report: 2020 Election Results Bolster Real Estate Investment Outlook

Following the results of Georgia’s senatorial runoff election, the Democratic Party holds a reduced majority in the House of Representatives and the tie-breaking vice presidential vote in an evenly split Senate, AAHOA Silver Partner Marcus & Millichap reports. Despite numerous policies put forward by President-elect Joe Biden during the campaign, the political division in Congress will greatly restrict legislative reform. Consistency from a policy perspective will help lay a stable groundwork for future decision-making by commercial property investors, although ambiguity remains surrounding the resolution of the health crisis.

This latest report takes a look at tax reform outlook and other notable legislation; the role of new stimulus and vaccine rollout on 2021 economic outlook; and key stimulus provisions for real estate investors.

Read Full Report

CBRE: U.S. Development Opportunities – Uncovering Market Strength

The next real estate cycle will require changes to the design and construction of space. CBRE’s U.S. Development Opportunities report analyzes existing real estate supply, current construction costs, and past performance to identify markets and property types that offer the best opportunities. The report also provides rankings and detailed overviews of the top 50 U.S. development markets.

Access Full Report

CMBS Delinquency Rate Wraps Up 2020 on Lower Note: Retail Improves, Lodging Worsens

The Trepp CMBS delinquency rate continued to recede for the last month of 2020. After two huge jumps in May and June, the rate has now declined for six consecutive months. Hotel loans continued to be the worst-performing segment, with the overall delinquency rate for that property sector climbing for the second straight month.

Read Full Report

Curated Vaccine Resources on AAHOA.com Answer Some of Your Pressing Questions

Wondering what your state’s vaccine distribution plan is and when you can get inoculated? AAHOA has curated new information on its website to answer these and other questions you might have about the vaccine against COVID-19. You can see how many people in your state have received vaccinations, whether your state is allowing people to pre-register, and more.

Learn More

Register Now: Hotel Optimization Part 3: Where Do We Go from Here?

The impact that the coronavirus pandemic has had on the hospitality industry is palpable, leaving many asking, "Where do we go from here?" and “How do we come back from this?” AAHOA Chairman Biran Patel and Secretary Nishant (Neal) Patel will be among the featured speakers who will answer those questions and more at Hotel Optimization Part 3, set for January 27. This virtual event series, created in partnership with AAHOA, will provide clear insight, opinion and forecasting to help you better understand your options of getting back to profitability... and fast. Your FREE pass gives you access to expert panels that will discuss technology available to take slices out of your bottom line; how to protect yourself from lawsuits; where the opportunities are for investment; selling up vs. staying and taking the long-term view; and more! View the agenda and register for your free pass.

Register Now

The New York Times: It Could Be a Great Year, If Your Business Survives Winter

As 2021 begins, business owners big and small, including AAHOA Vice Chair Vinay Patel, confront a rapidly shifting landscape. An end to the pandemic is in sight as inoculations begin, but the slow pace of vaccinations has delayed the turnaround they were counting on. Hanging on is the chief goal for many, even as others look ahead to what they consider to be an inevitable rebound. “2022 is when we’ll see the real true potential of the vaccine,” said Patel, who manages a chain of nine hotels in Maryland and Virginia.

Read Full Article

It’s BAAACK! Earn Your CHIA Certification in March (All Digital)

AAHOA’s virtual Certification in Hotel Industry Analytics (CHIA) is back and set for March 4-29. The CHIA is the leading certification for industry professionals focused on analytics and teaches you how to read, understand, and interpret statistical hotel data to help you strategically set rates and make business decisions. Registration is capped at the first 50 registrants and only members in good standing can participate. The cost for certification is only $199. Register today to get your certification as seats are limited!

Register Now

AAHOA Observes #WearBlueDay in Support of National Human Trafficking Awareness Day

January is National Slavery & Human Trafficking Prevention Month and Monday was National Human Trafficking Awareness Day. The AAHOA Family took photos of ourselves, and our families, and friends and shared them on social media using the #WearBlueDay hashtag. AAHOA is leading the fight to put an end to this human tragedy that threatens lives and livelihoods. Many of the conditions that lead to the trafficking of vulnerable populations were only made worse by the COVID-19 pandemic. Though AAHOA has trained nearly 7,000 people to recognize the signs of trafficking through our Businesses Ending Slavery and Trafficking (BEST) Inhospitable to Human Trafficking Training Sponsored by AAHOA program, our work is far from over. Help us end human trafficking by joining the fight.

Get Trained Today

Updates for First Draw PPP, Second Draw PPP

The Small Business Administration (SBA) re-opened the Paycheck Protection Program (PPP) loan portal to PPP-eligible lenders with $1 billion or less in assets for First- and Second-Draw applications today, January 15 at 9 a.m. EST, and will re-open to all participating lenders on January 19.

First-Draw PPP Loans are for those borrowers who have not received a PPP loan before August 8, 2020.
Second Draw PPP Loans are for eligible small businesses with 300 employees or less, that previously received a First Draw PPP Loan and will use or have used the full amount only for authorized uses.
As with the First Draw PPP, Second Draw PPP borrowers must certify that current economic conditions make the loan request necessary to support ongoing operations.
Second Draw PPP Loan applicants should demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
The maximum amount of a Second Draw PPP loan is $2 million.
The Economic Aid Act also expanded the permitted uses of PPP loans – which apply to both new First Draw PPP and Second Draw PPP loans – to include not only payroll and benefits costs, rent, utilities, and mortgage and other interest costs, but also covered operations expenditures, covered property damage costs, covered supply costs, and covered worker protection expenditures.