The hotel industry is dealing with an unprecedented crisis due to the disruption caused by the global COVID-19 pandemic. With hotels shut or operating at severely reduced capacity and with customers in lockdown, we look at the steps businesses can take to not only survive but also put themselves in the best position for reopening.
The global disruption resulting from the COVID-19 pandemic is unprecedented. Previously, localized events such as hurricanes have led to long-term closures. Now both global and regional chains, as well as independent operators, are facing severe cash flow pressures. The first half of 2020 saw a widespread drop off in occupancy rates around the world. In May 2020, New York occupancy rates were 80% below what we would have expected to see, with many hotels temporarily closed.
The challenges created by COVID-19 affect almost every part of a hotel’s operations, from room occupancy levels and staffing plans, to food and beverage provisioning. The pandemic has the potential to have far-reaching effects on the industry, long past the lifting of travel restrictions and regional lockdowns. Your priorities will depend on the size and structure of your business, as well as your current financial position and long-term strategy.
We are immersed in the hotel industry and our professionals are uniquely positioned to assist you in all aspects of the creation and execution of your turnaround plan.