FAST FIVE: Time To Go All-In The "Big Short 3.0"? Two-Thirds Of US Hotels Say They Won't Last Six More Month At Current Occupancy Levels
The latest tailwind blast for the CMBX 9 shorts came from a report from NorthStar according to which, without aid 74% percent of US hotels said they expect to lay off more employees, with a whopping two thirds of properties warning they won't be able to last another six months at the current projected revenue and occupancy levels.
Without aid from Congress, the industry association expects massive foreclosures.
Hotels across the country are on track to lose more than $400 million in room revenue per day due to COVID-19, which equates to losses of $2.8 billion weekly.
As a result, many hotels – 87 percent, according to the AHLA – were forced to furlough or lay off staff members.
Only nine have yet to reopen, according to Omni's travel advisory page. Gaylord Hotels was forced to temporarily close its five properties in the US Four have since reopened: the Gaylord Texan Resort & Convention Center, Gaylord Opryland Resort & Convention Center, Gaylord Palms Resort & Convention Center and Gaylord Rockies Resort & Convention Center.