U.S. hotel, travel industry ask for bailout as job cuts begin

By Chris Sanders and Katie Paul

WASHINGTON/SAN FRANCISCO (Reuters) – American hotel and travel industry executives from companies such as Marriott and Hilton met with U.S. President Donald Trump on Tuesday to discuss a possible $150 billion aid package, as thousands of hotel workers begin to be furloughed.

The hotel industry said it is expected to lose $1.4 billion in revenue every week due to the fast-spreading virus, according to a statement from the American Hotel and Lodging Association and the U.S. Travel Association, which also forecasts a 30% drop in hotel occupancy over a year.

The sudden cratering of demand would cause the loss of 4.6 million jobs, it added.

Marriott, the largest hotel company, confirmed it is beginning to furlough what it anticipates will be tens of thousands of employees.

A company spokesman said it had begun shutting down some of its managed properties last week, and it is also cutting staffing at hotels that are still open. Workers are not being paid but will get healthcare benefits, the company added.

At a press availability during the meeting, which also included Vice President Mike Pence, Hilton’s chief executive said occupancy was down to 15% and that they were shutting down hotels in some cities.

A spokesman said Hilton has temporarily suspended new reservations at two hotels in New York and Washington, D.C., although it is allowing current guests to continue their stays.

Hyatt’s chief executive, also speaking during the meeting, said occupancy at his company’s hotels was in the single digits.

Treasury Secretary Steven Mnuchin told reporters he hoped Congress would include aid to the hotel industry including potential loan guarantees.

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