The Park Hyatt Chicago and the Peninsula were the first luxury hotels to temporarily close Downtown, as the coronavirus outbreak brought upon plummeting occupancy and revenue.
Statements on their websites cited public health concerns in their decisions to close, Crain’s reported.
The Park Hyatt, a 198-key hotel at 800 North Michigan Avenue, doesn’t plan to accept new reservations until April 30. At the 339-key Peninsula at 108 East Superior Street, reservations won’t be available until further notice.
Last week, occupancy at Chicago’s hotels dropped more than a third to almost 44 percent, while revenue per available room fell 43 percent to nearly $48 per available room, according to hospitality research firm STR. Hotels in New York and Los Angeles saw similar declines in occupancy and revenue per available room.
The economic slowdown caused by the virus has also resulted in thousands of hotel worker layoffs, according to the Illinois Hotel & Lodging Association.
In Chicago, the loss of guests was exacerbated by the cancelation of 20 conventions at McCormick Place, which would have accounted for more than 250,000 hotel room nights between the beginning of this month and mid-April, according to its owner, the Metropolitan Pier & Exposition Authority.
Folks in the hotel industry are seeking solutions, including a proposed $150 billion government bailout, to prevent hotels across the U.S. from closing permanently.
Even major nationwide chains aren’t immune. Pebblebrook hotels this week said it would lay off the majority of its 8,000-person staff, while Hilton recently warned that it might have to start shutting down its hotels in major cities. Marriott International began putting its employees on furlough as it shut down some of its properties. [Crain’s] — Brianna Kelly