$250 Billion Bailout Requested by Lodging Companies
Not to be outdone by the commercial airline industry, executives and representatives of the lodging companies in the United States has requested $250 billion in assistance as a result of the economic impact which they have suffered due to the current 2019 Novel Coronavirus — which is also known as COVID-19 or 2019-nCoV — pandemic.
$250 Billion Bailout Requested by Lodging Companies
The request for $250 billion includes $150 billion to allow owners of hotel and resort properties to continue to pay off their loan payments and to support employees who are being laid off — tens of thousands of employees of Marriott International, Incorporated alone are reportedly being furloughed without pay but will receive benefits — while another $100 billion would go to providers of recreation and retailers as two of numerous examples of suppliers.
The chief executive officers of ten lodging companies met with Mike Pence — who is the current vice president of the United States — yesterday, Tuesday, March 17, 2020 to request urgent “assistance to keep hotels from shuttering” and to protect millions of employees of the lodging industry from losing their jobs.
“The impact to our industry is already more severe than anything we’ve seen before, including September 11th and the great recession of 2008 combined,” stated Chip Rogers — who is the president and chief executive officer of the American Hotel and Lodging Association, which ironically boasts about being All Together Powerful — according to this official press release from the trade organization. “The White House and Congress can take urgent action to protect countless jobs, provide relief to our dedicated and hardworking employees, and ensure that our small business operators and franchise owners — who represent more than half of hotels in the country — can keep their doors open.”
A decline of 30 percent in the occupancy of guests at hotel and resort properties could result in the loss of as many as four million jobs, according to this study from Oxford Economics and the American Hotel and Lodging Association — “with $180 billion of wages and a $300 billion hit to the GDP — crippling the hotel industry, the local communities they serve and the U.S. economy.”
Hundreds of hotel and resort properties worldwide have already temporarily shut their doors — and more closures are certain to occur.
As to whether the complete request of $250 billion by the lodging industry will be fulfilled remains to be seen.
Airlines for America had submitted its proposal of requests on Monday, March 16, 2020 in this document — which calls for both $25 billion in grants for passenger airlines and $25 billion in loan guarantees and tax relief for the first three months of the year — after air travel from China and most of Europe was blocked by the United States; and after a significant reduction in domestic travel because of concerns pertaining to the spread of 2019 Novel Coronavirus.
After what seems to be a vast array of countless devaluations and cuts of benefits overall to customers — that’s us — in recent years during when the economy was booming, lodging companies are already now joining airlines for financial assistance…
…and the worst of this artificial man-made economic disaster — which could easily have been avoided, in my opinion — has not even reached its full impact.
Tell you what, lodging industry: I just might — just might — consider agreeing to the assistance if you clean up your act as to how you treat your customers.
A good start would be eliminating those deceptive mandatory resort fees and similar junk fees you charge your guests. Keep those intact; and you do not deserve any assistance, in my opinion.
This article is the latest in a series pertaining to the 2019 Novel Coronavirus in an effort to get the facts out with information derived from reliable sources.
Other articles at The Gate which pertain to the 2019 Novel Coronavirus include:
- Countries With Travel Entry Restrictions Due to 2019 Novel Coronavirus: A Comprehensive List
- $50 Billion Bailout Requested by Airlines; Trump to “Back the Airlines 100%”
- Global Level 3 Health Advisory Issued by Department of State of the United States
- All Domestic Travel Banned For Personnel of Department of Defense of the United States
- March 15 2020: Checking Back In on 2019 Novel Coronavirus — My Opinions, If Anyone Cares
- Hotel Deploys Robots to Sanitize and Disinfect Rooms
- Ireland and the United Kingdom Added to Suspension for Most Foreign Nationals For 30 Days From Europe to the United States
- Change Fee and Cancellation Fee Policies and Waivers of 46 Airlines Due To 2019 Novel Coronavirus
- Up to 12 Ounces of Hand Sanitizer is Permitted Through Airport Security Checkpoints
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- Stop the Hyperbole: Travel is NOT Banned Between the United States and Europe…
- Travel From Europe to the United States Suspended for Most Foreign Nationals For 30 Days
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- Lodging Companies Issue Travel Waivers and Elite Status Extensions 2020 Due to 2019 Novel Coronavirus
- Update: More Airlines Suspended Change and Cancellation Fees 2020 Due To Coronavirus
- Airlines Which Suspended Change and Cancellation Fees 2020 Due To Coronavirus
- Should You Be Concerned About Coronavirus?
- Travel Alert February 2020: Italy Now Affected by 2019 Novel Coronavirus
- Travel Alert February 2020: Northern Italy Now Affected by 2019 Novel Coronavirus
- Travel Alert February 2020: South Korea Now Affected by 2019 Novel Coronavirus
- A Deal to Antarctica Because of 2019 Novel Coronavirus — But Hurry
- Update: Do Not Travel to China Due to 2019 Novel Coronavirus, Says United States Department of State
- Travel Alert January 2020: Hong Kong Now Affected by 2019 Novel Coronavirus
- Update January 2020: Additional Airlines Issue Travel Waivers for 2019 Novel Coronavirus
- Travel Alert January 2020: 2019 Novel Coronavirus Affecting Air Travel
Photograph ©2018 by Brian Cohen.