Luxury Hotels Are Nearly Empty. Budget Hotels Still Have Customers.

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Luxury Hotels Are Nearly Empty. Budget Hotels Still Have Customers.
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All across America, high-profile hotels and resorts have shut down. But lower-end hotels tend to still be open, and they have more guests in them than you might expect. jbarro writes

Vacancy. Photo: Noam Galai/Getty Images/2020 Noam Galai All across America, high-profile hotels and resorts have shut down: The Las Vegas Strip is closed, as are all the hotels at Walt Disney World resort and many iconic city hotels like the Marriott Marquis in Times Square and the Beverly Wilshire in Beverly Hills. STR, a leading provider of data on the hotel industry, estimates that 665,000 of the 5.4 million hotel rooms in the U.S. were out of service as of April 9.

The much sharper drop in occupancy at the top of the market makes sense. Who stays at higher-end hotels and resorts? Vacationers, white-collar business travelers, conference and wedding attendees — all travel categories that have gone essentially to zero. Why do people stay at higher-end hotels and resorts? In significant part, to enjoy amenities like restaurants, pools, and spas, which are necessarily closed.

“It’s mostly local,” said Z.B. Mohan, the general manager of the Holiday Inn Express JFK Airport, when I asked who’s staying in his hotel these days. “Maybe someone in the family wants to quarantine or stay away from family. Some people are stuck from the airport, missing connecting flights because they arrive at the airport and the connecting flight is canceled.”

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