Hotel Occupancy Rates Slide Even More With U.S. Travel Shut Down

(Bloomberg) -- The story keeps getting worse for U.S. hotels as travel bans and social-distancing efforts decimate demand for rooms.

Occupancy rates fell to 23% during the week ending March 28, according to a report provided to clients by lodging data firm STR. Occupancy was 15% in New York, the U.S. epicenter of the coronavirus outbreak. The numbers were similar in Orlando and New Orleans, two tourist destinations where the rates slipped to 14% and 13%, respectively.

With Americans facing a least another month of hunkering down, lodging companies are closing properties, laying off hotel staff, and furloughing corporate employees as they ride out the crisis. They’re also seeking to help public health officials -- and salvage some business -- by offering rooms to non-critical patients and medical personnel.

While the hospitality business won special considerations in the relief bill passed by Congress last week, industry trade groups say the stimulus package doesn’t go far enough.

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