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
President Joe Biden’s American Rescue Plan was passed over the weekend. (Getty / Photo Illustration by Kevin Rebong for The Real Deal)
What real estate gets in Biden’s $1.9 trillion package
What real estate gets in Biden’s $1.9 trillion package
(Getty, iStock)
Movie theaters’ future uncertain as studios focus on streaming
Movie theaters’ future uncertain as studios focus on streaming
Theaters in some cities are opening with restrictions. (Getty, Photo Illustration by Alison Bushor for The Real Deal)
Coming attraction: Movie theaters reopen in New York, San Fran
Coming attraction: Movie theaters reopen in New York, San Fran
Restaurants and bars accounted for a majority of the gains in February (iStock)
Leisure, hospitality big winners in February job gains
Leisure, hospitality big winners in February job gains
The company currently operates 761 stores, and intends to open 100 new stores this fiscal year. (iStock)
Retailer Burlington plans to double store count
Retailer Burlington plans to double store count
Ascena owns Ann Taylor, Lane Bryant, Lou & Grey and Cacique. (Getty)
Ascena restructuring approved post-bankruptcy
Ascena restructuring approved post-bankruptcy
Apollo Global Management will take over craft retailer Michaels in a deal that values the company at $3.3 billion. (Wikipedia Commons, iStock)
Craft retailer Michaels to go private in $5B deal
Craft retailer Michaels to go private in $5B deal
 JLL CEO of capital markets Richard Bloxam and Roofstock CEO Gary Beasley (JLL, Roofstock, iStock)
JLL gets in rental home business
JLL gets in rental home business
arrow_forward_ios

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

Loading...