Recent study showcased that the impact of coronavirus COVID-19 pandemic is getting deeper progressively and potentially having negative impact on the hotel industry.
Week by week, the hotel industry is facing an unprecedented and abrupt drop in the hotel demand with drastic declines in occupancy rates.
Hotel owners have already been reporting regards to facing massive, unavoidable furloughs and layoffs.
As of this May month, nearly seven out of ten hotel rooms were staying empty across the U.S. per STR and thousands of hotels got completely shuttered.
Since the novel coronavirus began to escalate in the mid-February across the U.S., hotels have lost already more than 23 billion dollars in room revenue.
This devastating figure is on pace with hotels and may prone to lose up to 400 million dollars in terms of room revenue per day, based on the revenue trends and current occupancy rates.
Every week, this pace means a big time loss of 2.8 billion dollars and exploding closures of hotel as time goes on. Sources project a revenue loss of 80 percent for the 2nd quarter.
Earlier last week, the revenue was 24 percent of what it was last year per STR. Equally the human toll is devastating with the majority of hotel managers reporting already a significant of layoffs and furloughs.
In this times of uncertainty, outsourcing your accounting services can give you a sigh of relief and deliver certainty.
Generating positive returns in hotel industry cannot solely be tied to the hospitality or travel market or guest demand.
Positive outcomes are also possible through the rightly aligned back-office structures.
Over hundreds of hotel brands use Nimble Property’s financial and accounting automation solutions and all those are successful in reducing their overall costs by at least a minimum of 20% annually.