The Current State Of The Hotel Industry Isn’t ‘Sustainable’ Without Government Funding, CEO Says

Topline

The American hotel industry could be on the brink of collapse with as much as two-thirds of the nation’s hotels set to shutter in six months without financial help from the government and millions of industry workers laid off, a situation CEO of Best Western Hotels David Kong told CNBC on Monday was “not sustainable.”

Key Facts

Hotels have been the victim of a devastating one-two punch from the coronavirus pandemic, with forced closures leading to massive layoffs, and a sharp decline in bookings with travelers afraid checking in might mean contracting the virus.

“It’s really hard to say when a recovery is going to be. This situation we are in now, it’s not sustainable. It’s really bad,” Kong, who recently spoke with both the White House and Congressional Democrats about stimulus funding, told CNBC.

Kong noted the

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Baltimore City Council approves worker recall bill over law department, hotel industry objections

The Baltimore City Council on Monday passed legislation aimed at protecting hospitality workers’ jobs, despite objections from the city’s law department and the hotel industry.

The bill would require hospitality businesses to hire laid-off workers once they reopen. Thousands of housekeepers, banquet servers and other employees have lost their jobs as the industry suffers from the coronavirus pandemic and related shutdowns.

The council also passed a second, less-contested bill that would ensure a hotel retains its staff if the business’ ownership changes hands.

The bills now head to the mayor’s desk for his consideration. Democratic Mayor Bernard C. “Jack” Young has not indicated whether he plans to sign them, but issued a statement via a spokesman saying he will review the legislation.

Hotel workers have rallied around the bills, saying they’re looking for some certainty that they will eventually get to go back to work.

More than 1,500 hospitality workers

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