The American Hotel & Lodging Association conducted a survey of members last month on a variety of topics, including the Paycheck Protection Program (PPP). Below is survey data of 900 of its hotel members on utilizing the PPP and why it is not enough to rehire employees. The survey also shows many hotels struggling to obtain forbearance on CMBS loans — risking thousands of hotels going into default on commercial mortgage loans and ultimately foreclosure (closing their doors permanently).
TOPLINE: Hotels Have Applied for Paycheck Protection Program and Other Loans
More than 95 percent of respondents applied for a PPP and/or Economic Injury Disaster Loan (EIDL). 79 percent of applicants were approved for one or both. The median loan amount applied for was $150,000 (max PPP loan amount is 2.5x monthly payroll).
BOTTOM LINE: Little to No Revenue + No Forbearance = Hotels Permanently Close
The survey of hotels highlights the urgent need for AHLA’s requested updates to Paycheck Protection Program and for debt relief from lenders, especially within the CMBS market.
