Tennessee and Rutherford County hotels set to post record revenue loss, due to COVID-19
American Hotel & Lodging Association Report
Tennessee has been hit hard by COVID-19 and the hospitality industry, perhaps harder. The expected loss of jobs at Volunteer State hotels is expected to add up to 5,600 jobs by the end of 2021 over the next 4 months.
The metropolitan statistical area of Nashville, which includes Rutherford County, is expected to experience a loss of revenue of $ 743 million, a 75% drop in revenue from 2019.
Traveling through the pandemic was something many Americans decided not to do. The decision to phase out business and leisure travel may have been made to save money due to lost jobs or to save businesses money due to reduced spending after a loss. loss of income. Whatever the reason, hotel stays are on the decline across the country.
Across America, the hotel industry is expected to end 2021 down more than $ 59 billion in business travel revenue from 2019, according to a new report released today by the American Hotel & Lodging Association and Kalibri Labs. This comes after the loss of nearly $ 49 billion in business travel revenue in 2020.
Business travel is the main source of income for the hospitality industry and has been slow to return since the start of the pandemic. Business travel includes corporate, group, government and other commercial categories. Revenue from business travel is not expected to reach pre-pandemic levels until 2024.
The new analysis follows a recent AHLA investigation, which revealed that most business travelers are canceling, reducing and postponing their trips amid rising COVID-19 cases.
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The lack of business travel and events has a major impact on employment and underscores the need for targeted federal relief, such as the Hotel Jobs Act.
Hotels should end 2021 down by nearly 500,000 jobs compared to 2019. For every 10 people directly employed in a hotel property, hotels support an additional 26 jobs in the community, from restaurants and retail to hotel supply companies, meaning nearly 1.3 million more jobs supported by hotels are also threatened.
“As some industries have started to recover from the pandemic, this report is a sobering reminder that hotels and hotel workers are still struggling,” said Chip Rogers, president and CEO of AHLA. “Business travel is critical to the viability of our industry, particularly during the fall and winter months when leisure travel normally begins to decline. Persistent concerns over COVID-19 among travelers will only exacerbate these challenges. That’s why it’s time for Congress to pass the bipartisan Save Hotel Jobs Act to help hotel workers and small business owners survive this crisis. “
COVID-19 is the worst economic event in the history of the US hotel industry. Many urban markets, which rely heavily on event and group meeting activities, continue to face a severe financial crisis as they have been disproportionately affected by the pandemic.
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Top 3 markets planned for the end of 2021 with the biggest drops in hotel revenues:
• New York, NY with a projected loss of revenue of $ 4 billion
• Washington, DC with a projected loss of revenue of $ 2.3 billion
• San Francisco, California with a projected loss of revenue of $ 2.3 billion
The top 3 states are expected to end 2021 with the biggest drops in hotel revenues:
• California with a loss of revenue of $ 9.8 billion
• Florida with a loss of $ 5.3 billion in revenue
• New York with a loss of $ 5 billion in revenue
Although being among the hardest hit, hotels are the only segment of the hospitality and leisure industry has not yet received direct help. Hotels and their employees have shown extraordinary resilience in the face of unprecedented economic challenges, and the industry needs the support of Congress to achieve a full recovery.
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