Global Hotels Will Lose Just 2 Percent of Supply Permanently Because of Coronavirus: Report
Photo Credit: Government relief funds, like the $2 trillion coronavirus relief package passed in Washington, will help keep most of the world's hotel supply intact through the downturn, according to a Bernstein report. Adobe / DragonImages
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Ongoing government coronavirus relief efforts like the $2 trillion CARES Act and banks unwilling to take over hotels should keep most of the world's hotel supply intact through a very turbulent 2020.
A hotel’s recovery path from the coronavirus downturn in travel will hedge partially on which country the property is located.
Many hotels around the world are temporarily closed due to travel restrictions and shelter-in-place orders aimed at halting the spread of coronavirus. But countries like China are beginning to relax restrictions, and travel demand is beginning a long road to recovery. A Bernstein research report from late April estimates only 2 percent of the global hotel supply will permanently shut down due to the coronavirus crisis. Recovery is possible for the remaining supply through government assistance or lenient lenders.
“In Europe, where you see more hotels closed at the moment, it’s more the lenders and landlords that need to play ball,” Bernstein Senior Analyst Richard Clarke said. “In the U.S., to stay open and operational, it’s banked more on government support.”
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