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* From my inbox…
Hello Rich,
The American Hotel & Lodging Association (AHLA) released a new survey last week that underscores the devastating results for the hotel industry. Seventy-four percent (74%) of hotels would be forced to lay off additional employees and two-thirds of hotels (67%) would not make it another six months if Congress fails to pass another COVID stimulus bill. As a follow up, below is a breakdown of this impact by state. […]
Here is a quote from Chip Rogers, president and CEO of the American Hotel & Lodging Association:
“It’s time for Congress to put politics aside and prioritize American workers in the hardest-hit industries. Hotels are cornerstones of the communities they serve, building strong local economies and supporting millions of jobs. Thousands of hotels across America are in jeopardy of closing forever, and that will have a ripple effect throughout our communities for years to come. It is imperative that Congress act now before leaving town, or thousands of small businesses and the jobs associated with them will be lost. The American people cannot wait for relief. Congress needs to act now.”
According to the AHLA, Illinois has lost 22,621 hotel and lodging jobs as of September, out of 59,372. That’s 38 percent, in case you’re doing the math.
The AHLA also projects a loss of 41,560 Illinois jobs without a new stimulus bill. They’re also projecting the closure of 1,020 hotels (out of 1,522) and the loss of 131,665 hotel-related jobs (out of 292,588).
*** UPDATE *** From UNITEHERE…
Rich-
Hope you are well and hanging in there. I read the AHLA entry on the blog and wanted to make sure you had our union’s perspective. Namely, the “relief” the AHLA is seeking from Congress would largely benefit wealthy, sophisticated real estate investors and do little, if anything, about brining hotel jobs back or the corresponding tax revenue for state and local governments. Please see attached letter our President sent up to the Hill on Monday. Links to news coverage on this below. To state the obvious, getting the virus under control and the traveling public comfortable flying and booking hotel rooms again is the key, not bailing out risky mortgage bets made by investors who know (or should have known) what they were doing. Thanks
https://www.nytimes.com/2020/09/15/business/economy/hotel-owners-trump-federal-bailout.html
https://www.huffpost.com/entry/coronavirus-corporate-bailout-lobbyist-hotels_n_5f1afea1c5b6f2f6c9f5b74c
The letter is here.
posted by Rich Miller
Tuesday, Sep 29, 20 @ 9:10 am
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Stimulus are all well and good, but till the virus is under control, people just aren’t going to travel as much.
Speaking for myself, I won’t be traveling and staying in hotels for quite some time.
Comment by Bruce( no not him) Tuesday, Sep 29, 20 @ 9:27 am
In addition to all the lost jobs, there is a lot of lost revenue for cities and states. When rooms are not occupied, the occupancy tax revenue is zero.
Comment by Angry Republican Tuesday, Sep 29, 20 @ 9:39 am
Just ask any big hotel how they are doing…last years many millions of dollars in monthly revenue. Now they are lucky to have a few hundred thousand. That’s a lot of jobs lost and other spending not occurring. And it’s not just the pandemic causing this. Ask them. The urban violence is a key factor in this mess. It cannot be overstated how bad an impact the violence has had. Not the protests…obviously they are valid but this violence has been a disaster for downtown.
Comment by Chicago Tuesday, Sep 29, 20 @ 9:39 am
===Stimulus are all well and good, but till the virus is under control, people just aren’t going to travel as much===
Hence the need for the aid package.
You cannot be that dense.
Comment by Rich Miller Tuesday, Sep 29, 20 @ 9:44 am
===The urban violence is a key factor===
On a per capita basis there is more violent crime in Mt. Vernon than Chicago.
Trying to pretend this is about anything other than a global pandemic just isn’t going to work. Especially when the highest murder rate years in Chicago line up with record hotel revenue years.
Look at more data, and less facebook. Because I get the impression this is something you haven’t heard before.
Comment by TheInvisibleMan Tuesday, Sep 29, 20 @ 9:45 am
What I meant (stated really poorly) was both need to be dealt with.
“ You cannot be that dense.”. You’d be surprised how dense I can be. Just ask my wife. /S
Comment by Bruce( no not him) Tuesday, Sep 29, 20 @ 9:53 am
The world is changing–possibly for good. How can we presume to decide who and what gets a bailout and what doesn’t? Why should the airlines and hotels get a bailout? Our world is very different now and maybe those industries won’t be the titans anymore. Maybe some of them should shutter permanently, maybe some airlines should go out of business… Trying to pretend that everything will “go back to normal” someday is tilting at windmills. No industry is too big to fail.
Comment by Keri Tuesday, Sep 29, 20 @ 9:56 am
Between not funding the police and refusing to help industries that need assistance, the Trumpkin congresscritters here in Illinois are determined to hurt as many Illinoisans and businesses as possible to “own the libs”
What is so disappointing, besides “everything about it”, is that the Trumpkins in Congress pretend first they aren’t the ones choosing to hurt people, then they claim all-out falsehoods to deflect the actual.
Being a public servant, to be in public service, means to grasp politics within the real policy needs, and choose to serve the people best, not the political angles that seem winning, but make those same constituents… lose.
Comment by Oswego Willy Tuesday, Sep 29, 20 @ 10:09 am
-The world is changing - Thus the desperate need to support these industries as they change by providing stimulus funds which are laser focused on payrolls and local taxes. These industries may or may not be similar after the virus is controlled. The people and local governments who are employed by/depend on those companies and governments need stimulus funds to eat and live today.
Comment by Froganon Tuesday, Sep 29, 20 @ 10:19 am
Keri. You are 100% correct. My prediction. Chicago tourism will take decades to recover. And it’s not all about the pandemic.
Comment by Blue Dog Dem Tuesday, Sep 29, 20 @ 10:30 am
=== My prediction===
That you’ll troll and troll and troll to get some attention, or ask silly questions in hopes you get noticed.
Chicago is a world class city that will be stronger and better, probably because those who point out dog whistle things are their own reasons to stay away.
This isn’t me feeding you, this is me tired of how you think you’re adding, you’re signaling who you are, as you also troll about the pandemic too.
No need to respond.
Comment by Oswego Willy Tuesday, Sep 29, 20 @ 10:35 am
No need for further comments.
BDD has given his prediction on tourism and lodging in the Chicago area based upon his years of residing in southern Illinois.
Comment by Flyin' Elvis'-Utah Chapter Tuesday, Sep 29, 20 @ 10:41 am
It appears we have lost 100,000 oil industry jobs here in the states as a result of Covid-19. I am fully expecting that to be part of this next stimulus package as well. I will do my part to help both the tourism and oil industries by driving my pickup to Galena this weekend for a mini vacation.
Comment by Blue Dog Dem Tuesday, Sep 29, 20 @ 10:46 am
In the fourth quarter with 5 minutes left and an insurmountable lead, many predicted the Falcons had won and turned the channel.
Don’t ever turn the channel on Chicago.
Comment by Scott Cross for President Tuesday, Sep 29, 20 @ 10:50 am
Travel is cyclical and even when the pandemic ends who is to say business travel comes back with zoom meetings and companies penny pinching? High UI doesn’t bode well for discretionary travel either. Re-purpose failed hotels as affordable housing or redevelop into apartments. Chicago had an over supply of hotels pre-pandemic. Bailout money will be used for investors in the CMBS market first and preventing layoffs second.
https://www.chicagobusiness.com/commercial-real-estate/why-2019-shaping-be-tough-year-chicagos-hotel-biz
https://www.chicagotribune.com/business/ct-biz-chicago-hotels-downturn-20191101-zzl2udi6krg7pj5rwctrmezc4e-story.html
Comment by 1st Ward Tuesday, Sep 29, 20 @ 10:54 am
===by driving my pickup to Galena this weekend for a mini vacation===
Be careful out there, BDD. See the JoDaviess Covid percentage in the previous thread? Better be camping.
Comment by Jibba Tuesday, Sep 29, 20 @ 10:57 am
Jibba. Thanks. I will wear my mask and social distance. This will insure my and others safety.
Comment by Blue Dog Dem Tuesday, Sep 29, 20 @ 11:02 am
Tourism had been setting records in Chicago before the pandemic. We absolutely need more financial help. We don’t need the bunk about Chicago and Illinois being so poorly managed when national debt and deficit exploded under Trump and the GOP, and Trump’s inexcusably bad handling of the pandemic that exacerbated our economic damage.
Comment by Grandson of Man Tuesday, Sep 29, 20 @ 11:03 am
I agree more with the unions on this one. Bankruptcies will go through the hotel and travel industries like Neutron Jack went through GE. Assets will be repurposed and people redeployed.
I am not saying the transition will be easy. And I feel for the people in pain.
Comment by Last Bull Moose Tuesday, Sep 29, 20 @ 1:04 pm
=The urban violence is a key factor in this mess. -
Nowhere near as key as the loss of all those conventions.
Comment by JoanP Tuesday, Sep 29, 20 @ 4:31 pm