Source: News Channel 5 Nashville
By Mo Haider
April 6, 2020
NASHVILLE, Tenn. (WTVF) — With fewer people traveling during the pandemic, hotels across the country are taking a major hit.
The leaders of some major hotel industry trade groups say some hotels won’t be able to pay their bills. With closures and fewer people traveling, they’re telling the federal government they may default on billions of dollars worth of loans.
This comes in a letter written to U.S. Treasury Secretary Steve Munichin. Two of the organizations vocal about the struggles are the American Hotel and Lodging Association and the Asian American Hotel Owners Association.
They’re warning that the hotel industry will need special protections from lenders if its going to survive the effects of the pandemic.
Industry leaders say, 7 in 10 hotel rooms are empty.
Nashville in particular has been hit hard, with some hotels closing temporarily due to COVID-19, leaving thousands without jobs.
The Nashville Business Journal said 87 hotels in the area have a combined loan balance of more than a billion dollars and there is concern whether the owners will be able to pay that debt without some help from the government.
As of Monday, the federal government hasn’t responded to the request.