As the recognized COVID-19 outbreak in the U.S. and the nation’s subsequent shutdown approaches its fifth week, hotels and other small businesses are seeing some relief ahead.
Federal financial aid is coming in the form of loans and grants from the Small Business Administration.
In the past week, hundreds of thousands hotel owners have filed applications with their SBA-approved lenders for the $350 billion Paycheck Protection Program.
But when hotel owners and operators will see the money is anyone’s guess as both banks and small-business owners report being overwhelmed with the filing process.
Meanwhile another group of hotel owners feels left out in the cold. These are investors holding billions of dollars in CMBS debt. Many debtors are in default with more expected as May and June mortgage payments come due with no financial intervention on the horizon.
In this episode, part 11 of Lodging Leader’s special report on the coronavirus crisis and its impact on the hotel industry, we explore the state of the SBA rescue package as well as what is or is not being done to help CMBS debtors save their businesses from default.
Resources and Links
Bijal Patel, 31, is CEO of Coast Redwood Hospitality and the youngest chair of the California Hotel & Lodging Association. He’s made even more history at CHLA by agreeing to serve an unprecedented second term as the lodging industry emerges from the coronavirus pandemic. Patel is a third-generation hotelier. Being so steeped in hospitality at such a young age is not new for members of the Indian American hotelier community, but Patel fears the pandemic has drained the industry of emerging talent. Lodging Leaders spotlights Patel, who represents a leadership demographic that is fighting for the life of the hospitality industry as they watch their peers veer toward other career paths.
Many hotels these days have made room for guests with disabilities. Hotel managers and staff should also know what the Americans with Disabilities Act says about accommodating guests with pets. During the pandemic lockdowns, a lot of people added a pet to their household and now they’re bringing Fido along on vacation. Hotel employees need to know how to cater to both consumers who are pet owners as well as guests who travel with a trained service animal. Episode 329 of Lodging Leaders podcast reports on how the ADA defines a service animal and how a hotel is legally obligated to serve a guest who comes with a dog or any other animal.