Which hotels and resorts will survive this crisis? We must move forward with live events however, clients are unwilling to commit for a variety of reasons, one of which is vendor viability over the long haul. The uncertainty of future plans can be resolved by considering Meeting Escrow's financial solutions which offer tools that can support organizations during these uncertain times by minimizing risk.
The hotel industry has found itself in perhaps the most significant liquidity crisis it has ever faced. As the industry reports second-quarter numbers, with almost the entire second quarter coinciding with COVID-19-related government-mandated closures and self-imposed scaling back of operations, the results for virtually all sectors of the industry will undoubtedly be both sobering and unprecedented.
A staggering number of hotels were closed for most of the second quarter. Although some hotels were temporarily repositioned for use by healthcare providers and other first responders, and a small number have been used as quarantine facilities, most hotels that continued to operate experienced no group or meeting business, virtually no food and beverage revenues, and, in some cases, single-digit occupancy. Significant cost-cutting measures were put in place; starting with employee layoffs and furloughs followed by the cessation of non-essential services. However, even shuttered hotels incur significant costs of ownership, such as debt service, property taxes, and insurance, as well as necessary operating costs like continued employment of engineering and security personnel.