US hotel giant Marriott has issued a business alert showing that of their 7,300 hotels around the world, circa 25% of them are now closed due to the global Covid-19 pandemic. The alert states that senior management expect closures to accelerate in the days and weeks ahead.
Across the US where more than 870 Marriott hotels are now closed overall occupancy rates across the group is at 10%. The global and US figures are almost identical for Marriott in forecasting March revenue per room of 60% globally, in the US it’s 57%.
Not overlooking doing its bit to combat the pandemic Marriott is donating $10m in hotel stays for doctors and nurses across the country. Efforts are being focused on areas most affected by coronavirus, including New York, Los Angeles, Las Vegas and Washington.
Across the U.S. hotel industry currently circa 80% of hotel rooms are unoccupied and industry trade body the American Hotel & Lodging Association are more than concerned.
Despite the enormous $2.2 trillion stimulus package announced last month by Donald Trump many in the US hotel and wider hospitality industry are still concerned. Many are now saying the Government’s financial aid is not getting through either in numbers of businesses aided or in sufficient time.
The US Government’s financial stimulus and the speed and volume it is deployed at seems all too familiar to businesses across the hospitality industry in the UK. Maybe they should now both go for a financial crisis management lesson from Switzerland?