From the desks of the Hotel News Now Editorial staff:
- HDC: Hoteliers look for silver lining in pandemic
- Downgrade in US hotel forecast
- US, China still committed to Phase 1 trade deal
- July retail increased even with rise in virus cases
- Hotels grapple with on-and-off restrictions
HDC: Hoteliers look for silver lining in pandemic: The COVID-19 pandemic has challenged the hotel industry in ways it has never dealt with before, and speakers at the first-ever online Hotel Data Conference spent Thursday discussing how they are dealing with this crisis, the HNN editorial staff reports.
One quote of the day came from Isaac Collazo, VP of competitive intelligence for InterContinental Hotels Group, while speaking during the “Navigating this cycle (and what recovery may look like)” session.
“This is not a cycle. This is truly a disruption. We’ve never seen anything like this,” he said.
For more coverage of the event, check back with Hotel News Now next week.
Downgrade in U.S. hotel forecast: STR, parent company of Hotel News Now, and Tourism Economics, slightly downgraded their U.S. hotel forecast because full recovery in hotel demand and room revenue remains unlikely until 2023 or 2024, respectively, according to a news release.
“Performance recovery is going to remain slow and well off of the pre-pandemic pace until the context for travel improves and group business begins to return,” Amanda Hite, STR president, said in the release. “To show how far levels have fallen year over year, the 40% demand decrease we project for Q3 2020 will be a substantial improvement from the 57% decline realized during Q2. Even with a slight improvement in ADR projections through 2021, pricing confidence will lag an eventual rise in occupancy. As a result, the $32 billion gain we forecast for room revenue from 2020 to 2021 will push the industry to a level that is still 32.5% lower than 2019.”
U.S., China still committed to Phase 1 trade deal: China is behind schedule in its promised purchase of U.S. exports, but the two countries are still expected to meet and recommit to a Phase 1 trade deal over the weekend, Reuters reports.
“Current and former U.S. government officials and trade experts in both countries say the Phase 1 deal, signed in January after nearly two years of tit-for-tat tariffs and angry rhetoric, is the one area where the world’s two largest economies are still cooperating,” the news outlet writes.
While there’s conflict between the U.S. and China with the Trump administration sanctioning companies and people linked to a “security crackdown in Hong Kong and human rights, banned a Chinese owned video app, penalized Chinese academics and closed Beijing’s consulate in Houston in recent months” and China responded by closing the U.S. consulate in Chengdu and sanctioned some members of Congress, the trade deal “won’t be dismantled,” according to Reuters.
July retail increased even with rise in virus cases: While coronavirus cases rose in July, retail sales still increased for the third straight month, The Wall Street Journal reports.
Retail spending increased 1.2% in July and moved sales above pre-pandemic level, which is a sign that the economy continues to recover despite the rise in number of infections.
Retail sales increased 8.4% in June and fresher data says retail spending might have softened in August.
“One factor: the 31 July expiration of an enhanced unemployment benefit. That benefit—authorized in the CARES Act passed by Congress in March—had boosted jobless Americans’ weekly income by $600 a week. Amid congressional deadlock over a new stimulus plan, President Trump has acted to replace the payments with a $300-a-week benefit, but it isn’t expected to reach workers for weeks,” the news outlet reports.
Hotels grapple with on-and-off restrictions: Hotels and bars in Narragansett, Rhode Island, “report that on-again, off-again regional quarantines as well as state-ordered restrictions at bars are cutting into business,” The Independent reports.
Joseph Viele, executive director of the South Rhode Island Chamber of Commerce, told the news outlet that one hotel in the area “saw 120 cancellations in bookings after recent self-quarantine orders were announced for visitors from surrounding states coming to Rhode island and returning home about stays longer than a day,” the news outlet writes.
Compiled by Danielle Hess.