- Epic Economist
A new Big Short is being formed due to a catastrophic meltdown on the hotel industry sector. The CMBS short that once pointed to malls, now shifted its concerns to hotels, and hedge funds are already pilling up into the Big Short 3.0. Today, we will scrutinize a recent study that shows 74% of US hotels expect to lay-off even more employees, while two-thirds of them are likely to close their doors for good within the next six months. As of now, it’s been clear that a real recovery is out of the horizon, so let’s dive into another investigation to get a better grasp of the new unfoldings of the economic collapse. Stay with us and don’t forget to like this video, share it with your friends, and subscribe to our channel to keep updated with the next chapters of the 21st-century Great Depression.
Since the sanitary outbreak struck America, shaking the grounds of the fragile economy, the hospitality industry has been reeling and constantly needing federal relief. The American Hotel and Lodging Association (AHLA) released a research disclosing alarming new data pointing to a downfall in the sector. Right now, 68 percent of hotels have less than half of their normal staff working full time, and more than two-thirds of hotels revealed they would not be able to last six more months at the current projected revenue and occupancy levels, while half of the hospitality owners surveyed affirmed they are in risk of foreclosure. Additionally, 74 percent of hotels said they would be forced to lay off more employees if they don’t receive further government assistance.
A month ago, another poll published by the AHLA showed that the unemployment rates within the hospitality and leisure sector was at 38 percent, which configures almost four times that the national average of 10.2 percent. In an attempt to save the industry, the organization is appealing to lawmakers for an urgent pass on additional federal relief. Chip Rogers, president and CEO of the AHLA, said “it’s time for Congress to put politics aside and prioritize the many businesses and employees in the hardest-hit industries. Hotels are cornerstones of the communities they serve, building strong local economies, and supporting millions of jobs. Every member of Congress needs to hear from us about the urgent need for additional support, so that we can keep our doors open and bring back our employees.”