Survey of Hotel Owners Shows PPP Loans Not Enough to Save Jobs and Keep Doors Open

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May 7, 2020

 

TOPLINE: Hotels Have Applied for Paycheck Protection Program and Other Loans

More than 95% of respondents applied for a Paycheck Protection Program (PPP) and/or Economic Injury Disaster Loan (EIDL). 79% of applicants were approved for one or both. The median loan amount applied for was $150,000 (max PPP loan amount is 2.5x monthly payroll).

Top reasons why: A) Loan only covers 8 weeks of payroll and expected recovery to take much longer; B) Many hotels are still closed by government order and unable to reopen C) Have to spend PPP funds in short window of time to be forgivable, unable to hire staff back and will then be required to repay the loan.

TOPLINE: Lack of Debt Forbearance is a major issue for hotel owners NOW

Survey of hotels highlights urgent need for AHLA’s requested updates to Paycheck Protection Program and for debt relief from lenders, especially within the CMBS market.

BOTTOM LINE: With little to no revenue + no forbearance = hotels permanently close

BOTTOM LINE: More than 50% said the loan amount is not enough to rehire their staff.

BOTTOM LINE: More than 50% said the loan amount is not enough to rehire their staff.