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
