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California hotels fire thousands during coronavirus pandemic – Orange County Register

 


The hotel industry in the country has lost nearly 3.4 million direct and indirect jobs amid the coronavirus epidemic, and California is the most affected, according to an industry group.

State by state data from American Hotel & Lodging Association shows plummeting occupancy rates cost the state 125,454 direct jobs and a total of 414,069 jobs when salespeople, supply chain workers and related job creation are added to the mix .

Florida ranked second with an overall loss of 305,146 jobs, followed by Texas (-268,797), New York (-215,734) and Nevada (-161,404).

Pacifica Hotels, which operates more than 40 hotels in California, including Redondo Beach, West Los Angeles and Santa Monica, is suffering, according to Chris Marquis, executive vice president of acquisitions.

“Due to the recent impact of the coronavirus, we are forced to lay off or lay off a large part of our workforce in order to meet our debt service requirements,” said Marquis in a letter to leaders of Congress. “We are now left with a historically low occupancy rate, which is devastating for our business.”

California hotels have lost 125,454 direct jobs and a total of 414,069 jobs when vendors and supply chain workers are added to the mix, as well as jobs created by spending by hotel guests and employees .

Big numbers

The data, compiled by Oxford Economics, show that the country’s hotel industry supports almost 2.3 million direct jobs and more than 8.3 million jobs in total.

The coronavirus pandemic has resulted in more than a million direct job losses and nearly 3.4 million global layoffs.

Hotels ask the federal government for $ 150 billion in emergency assistance, most of which would keep workers on the payroll until the COVID-19 pandemic passes and business and leisure travel resume .

CEOs from Marriott, Hilton, Hyatt and other channels met with President Trump on Tuesday to ask for help. The industry is asking for an additional $ 100 billion for travel-related businesses such as restaurants, retail stores and other attractions.

Chip Rogers, CEO of the American Hotel and Lodging Association, said the virus was already having more of an impact on the hotel industry than the September 11 terrorist attacks and the Great Recession combined.

The industry is asking for direct subsidies to workers as well as assurances that franchisees have access to low-interest loans or reduced mortgage payments. Hotels want to keep their employees even if their rooms are not occupied.

David Stevenson, CEO of AD Hospitality, which operates four boutique hotels in the Los Angeles area, also implored Congress to help him.

“We rely on international tourism to fill the rooms of our hotels,” he wrote. “With the recent travel bans, the closure of major attractions and the stopping of sporting events and festivals, we are deeply affected. Our revenues have dropped by more than 60% in the coming months. “

The situation, said Stevenson, has put enormous pressure on AD’s cash flow.

“We are concerned about the ability to cover the payroll of our staff,” he said. “We need immediate and possibly sustained relief.”

The Associated Press contributed to this report

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