The COVID-19 pandemic has forced some states to impose strict stay-at-home orders that are adversely affecting many industries. This is leading the U.S. economy into a recession that will result in very sharp declines in GDP for H1 2020 and in job losses, particularly in the retail, food & beverage and transportation sectors.
The hotel industry is particularly exposed to effects of the pandemic. Severe reductions in demand and occupancy characterized performance in March and are expected to continue through Q3.
Hotel demand was down 14.2% nationally in Q1 2020 and 41.2% in March. Supply growth remained at 2.0% in Q1.