It’s no secret hotels are getting hit hard by the coronavirus pandemic.
Hilton Hotels’ preliminary system-wide first quarter estimate of revenue per available room showed a 56% to 58% decline for March, according to the company’s filing with the U.S. Securities and Exchange Commission on Thursday.
For the company’s hotels in Europe, Middle East and Africa, revenue per room is down 62% to 64% for March, which is slightly worse than Hilton properties in North and South America, which are down 54% to 56%.
These numbers are all better than the hotel’s revenue per room in the Asia/Pacific region, which declined 74% to 76% in March.
As of April 14, 1,000 Hilton Hotels have suspended operations, which accounts for 16% of the chain’s total global properties.
Marriott hotels are also expecting to report a decline of at least 23% in revenue per room for the first quarter.
About 25% of Marriott’s 7,300 hotels around the world are temporarily closed as a result of coronavirus travel fallout, according to a business update from the company on Tuesday.
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Marriott’s North American occupancy levels are at about 10%, and more than 870 hotels are temporarily closed (16%). Marriott is expecting to report that its revenue per room fell 60% worldwide in March, reflecting declines of 57% in North America.
Nationwide, about 80% of hotel rooms are empty.
Hotel occupancy, average daily rate and revenue per available room were down significantly year-over-year for the week of April 5-11, per a new report from STR, a firm that analyzes hospitality industry data.
Some hotels have found ways to make use of their empty rooms.
More than 15,000 hotels signed up for a new American Hotel and Lodging Association (AHLA) initiative called “Hospitality for Hope,” which matches hotels with government agencies in need, offering temporary housing for emergency and health care workers amid the pandemic.
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Hotels may be in a position to offer up rooms near a hospital they already have a relationship with, such as when relatives of sick patients come to the area. In these scenarios, hotels reach out to hospital leadership to offer a discounted rate.
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Cameron Lamming, chief development officer of Hostmark Hospitality Group, says the group’s San Diego hotels are offering low rates at locations near California hospitals – though it won’t nearly be enough to make up money lost.
“This could absolutely mitigate some of the declines that we are seeing, but you are seeing rock-bottom rates for all hotels,” Lamming told USA TODAY.
Contributing: David Oliver, USA TODAY
This article originally appeared on USA TODAY: Coronavirus: Hilton Hotels’ revenue per room drops 56% amid pandemic
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