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AHLA expects nearly half of US hotel rooms will stay empty in 2021
The American Hotel & Lodging Association reckons nearly half of all hotels in the US will remain empty for the rest of 2021.
In its State of the Hotel Industry report, the AHLA forecasts an average occupancy rate of 52.4% for 2021, leaving almost half of all rooms idle.
In comparison the pre-pandemic average in 2019 was 66%. However it is an improvement on 2020’s 44%.
The AHLA report predicts that to even fill half the rooms will require some discounting.
US room revenues will be about a third below 2019 levels.
The sluggish market is largely down to the collapse in business travel which the AHLA says will remain depressed this year.
According to the Outlook it forecasts a business travel decline of 85% through April 2021 compared to 2019.
After the spring business travel may start improving slowly, it says.
"Despite the challenges facing the hotel industry, we are resilient. Hotels across the country are focused on creating an environment ready for guests when travel begins to return. AHLA is eager to work with the new Administration and Congress on policies that will ultimately help bring back travel," AHLA CEO Chip Rogers said.
The trade group says the impact of Covid-19 has been nine times greater than 9/11.
Written by Ray Montgomery, US Editor
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TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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