Hotel industry sees nearly 1 billion unsold room nights this year

Industry has lost $46 billion in revenue

National /
Dec.December 11, 2020 03:00 PM
Photo illustration by The Real Deal (iStock)

Photo illustration by The Real Deal (iStock)

As fewer people have traveled — and thus, booked hotel rooms — because of the pandemic, the hotel industry is facing a staggering statistic: almost 1 billion empty hotel rooms for the year.

As of last week, more than 962 million room nights have gone unsold, Bloomberg News reported, citing data from lodging information firm STR. That’s about 46 percent more than all of last year. The industry is projected to surpass 1 billion unsold rooms by Christmas.

Last year, more than 650 million room nights went unsold, despite occupancy rates in 2019 hitting 66 percent, nearly a record high.

But this year is anything but normal. It’s estimated that hotel owners have seen about $46 billion in lost revenue, and many owners expect to close without federal aid.

“If there’s no relief before the holidays, I don’t know how many hotels will continue into 2021,” Bijal Patel, chairman of the California Hotel & Lodging Association, told Bloomberg. “Many of us are going to be on the brink of shutting down.”

Even with a vaccine, hotels face a slow recovery. In 2021, occupancy is projected to be 52 percent. Levels are expected to return to last year’s normal until 2024.

[Bloomberg] — Sasha Jones


Related Articles

arrow_forward_ios
Donald and Eric Trump with the Trump National Doral Golf Club in Florida and Trump International Hotel at Washington D.C. (Getty; Trump Organization)
Financial disclosures show extent of Trump Org losses
Financial disclosures show extent of Trump Org losses
(iStock)
Homebuilder sentiment falls for second month in a row
Homebuilder sentiment falls for second month in a row
Blackstone's Ken Caplan (iStock; Blackstone)
Industrial now 36% of Blackstone’s RE portfolio
Industrial now 36% of Blackstone’s RE portfolio
Almanac Realty Investors managing director Matthew Kaplan (Almanac Realty; iStock)
Workforce housing investor gets $320M boost
Workforce housing investor gets $320M boost
Robert Morse, executive chairman of Bridge Investment Group, one of the major Opportunity Zone investors focusing on real estate. (Bridge, Stanford)
Opportunity Zone investments got a boost in 2020
Opportunity Zone investments got a boost in 2020
Fabric co-founder, CEO Elram Goren (Getty, Elram Goren via LinkedIn)
Startup wants to bring “micro-warehouses” to vacant retail
Startup wants to bring “micro-warehouses” to vacant retail
News of President-elect Biden’s $1.9T stimulus plan held promise for employment and economic activity. (Getty)
Real estate stocks hold gains even as market doesn’t
Real estate stocks hold gains even as market doesn’t
Before the pandemic, national tenants paid 94 percent of rent. (Getty)
Retail rent collections rebound to 90%
Retail rent collections rebound to 90%
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...