The hotel market is, unfortunately, in an economic depression after experiencing the second-steepest financial losses. This is related to the COVID-19 pandemic among major U.S. markets, according to a new industry group report. In fact, during May 2021, the final full month a state in the New England region of the U.S. had a state of emergency in place. Moreover, our hotels brought in one-third as much revenue per available room. In fact, as they did two years earlier, according to the American Hotel and Lodging Association.
Hotel Market is Struggling
This association, in fact, has for a long time warned about the COVID-19 pandemic’s devastation on the hospitality industry. Thus is calling for more federal funding. It found that seven of the top 25 American hotel markets that included Boston did remain in what labeled a depression in May. Now, there are another 14 markets that are in a recession, the organization has, in fact, said.
Revenue that is available per room in Boston hotel has significantly dropped from $184 in May 2019 to $61 in May 2021. In fact, the 67% drop has only surpassed the 70% decline in San Francisco. This is according to AHLA.
“There is some rebounding for some industries as COVID-19 restrictions have eased across the country. However, the U.S. hotel industry is still in a recession. In fact, the hardest-hit markets do include Boston, which is in a depression,” said AHLA President Chip Rogers.
Revenue per Room
AHLA has estimated the revenue that is available per room stood 22 percent lower in May 2021. This is nationwide comparing to May 2019.
Hit particularly are hard are the urban markets. Moreover, the revenue is down more than half. This is over a two-year comparison window. There are smaller metro areas, resorts, and interstate markets that did haul in about as much in May 2021 as May 2019.