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Hotel industry braces for bankruptcies amid uneven pandemic recovery

This Los Angeles Business Journal article highlights the ongoing impact of the COVID pandemic and suggests the recovery will be more like a marathon than a sprint. Visit our website to read case studies of how we helped clients protect their organizations from financial risk.

Los Angeles Business Journal - November 29, 2021 - "Hotels had braced for a temporary disruption to their businesses during the pandemic, but that disruption has extended, and now the industry is getting a wake-up call. With a still-staggering market and shrinking federal support, some of the hospitality industry’s most vulnerable are grappling with bankruptcy.

From the pandemic’s outset in March 2020, hotels experienced a drastic plunge in their occupancy rates and a dramatic drop in their bottom line. But an immediate wave of bankruptcies didn’t follow despite some industry experts anticipating it, largely thanks to government support and emergency infusions of cash. More than a year and a half later, that funding has waned, and occupancy rates haven’t rebounded to normal levels."


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