Page 6 - NBIZ Magazine December 2020
P. 6



                                               By Randy and Patrick McCaslin

        Impact of Covid-19 on the Hotel     National Economy and the Impact      recover quickly and/or what the future
        Industry                            on Hotel Demand                      will bring.
           The hotel industry is one of the    Hotel demand on the national level
        hardest-hit by the Covid-19 pandemic.   has been affected not only by Covid-19   Houston Hotel Market Factors
        Occupancy rates dropped to historic   but also by many uncertainties about   The driving forces of the Houston
        lows overnight, falling into the single   the future, including:         economy have been affected by Covid-
        digits at the start of the pandemic.   • Political Unrest                19. The recovery of these factors will
        Standard occupancy rates are typically   • 2020 Election                 determine how quickly Houston will
        between 60% to 70%, which are now   • International Travel Bans          rebound and hotel demand will return,
        averaging 30% to 40% in most markets.   • Economic Downturn              as follows:
        With a halt to corporate travel, numer-  • Lack of Additional Stimulus   • Global Trade - Global trade is return-
        ous restrictions on leisure travel, and   Packages                        ing faster than expected; it was down
        no group meetings or conventions    • Stock Market Volatility             30% in April, but it was only down 7%
        being held in person, hotels have had to   • Fires, Hurricanes, and Earthquakes  in July.
        furlough the majority of their employ-  These uncertainties affect travel   • International Travel - While much
        ees and run their properties with a   and lodging and make it difficult to   of the global travel has come to a
        skeleton crew just to survive.      know whether the hotel industry will   halt with the travel bans, the silver

        6  NBIZ  ■ December  2020
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