Hotel Industry Seeks $250 Billion Bailout Package
Travel demand has evaporated during the coronavirus pandemic. Travel bans, restrictions and common sense are making people avoid traveling during these times. So airlines and hotels are clearly feeling the pain and struggling to stay afloat.
After airlines asked for a $50 billion bailout, the hotel industry is seeking a total of $250 billion for owners, employees and suppliers, saying devastated room bookings due to the coronavirus are resulting in closures and mass layoffs.
Hotel executives said they detailed the impact coronavirus is having on the industry in a meeting with Trump administration yesterday. They are looking for $150 billion to assist hotel owners with expenses and to support employees who are being laid off. They are also asking for an extra $100 billion for suppliers, USA Today reports.
The impact so far has been “more severe than 9/11 and the 2008 recession combined,” said Chip Rogers, CEO of the American Hotel & Lodging Association in a call with reporters. Hotel occupancy has fallen below 20% in many cities.
Marriott for example said yesterday that it would start to furlough tens of thousands of employees as it closes hotels across the globe. NYP reports that some hotels in NYC are running at a 5% occupancy and some properties will shut down temporarily. Similar situation can be found all across the country.
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AC,
No way. It was overbuilt and many should be allowed to fail. I can understand to some point $50 billion for airlines since having a national air travel system is important to the country but no way should hotels (or casinos) get a bailout – let alone one 5 times what the airlines are seeking
Agree with you. With all these taxpayers money all these companies do is pay high bonus to executives. Let them fail along with airlines who charges ridiculous baggage fees