Saratoga Wire: New York Hotels Are Facing Massive Loss Due To Sudden Price Drop

October 10, 2020

 

The pandemic outbreak has not only claimed lives but has also shattered the economy of many nations. The hotels in New York are facing a massive loss in their business as an outcome of the pandemic outbreak.

 

New York Hotels Several Affected By The Pandemic

 

The coronavirus pandemic has really brought the world to a standstill. It seems that everything has changed because of this deadly pandemic and it actually has. We are trying our best to adapt to the new normal and live a normal life. But it is not really easy to get back to normal and fix every loss this pandemic has caused us.

To control the spread of the virus many countries had announced a complete lockdown. Although it helped to keep the infection at bay it completely shattered the economy. And as a result of that, the hotels in New York are facing tremendous loss.

During the lockdown period, all hotels were shut as per government orders. And now as things are getting back to normal these hotels are finding it difficult to deal with the loss. Despite being allowed to operate several hotels in NYC have permanently shut down due to massive financial loss.

As of now out of approximately 700 hotels in NYC, more than 200 hotels are closed. And we don’t know if they are going to operate again

Price Drop

Even the hostels that have decided to operate are facing massive loss due to price drop. NYC’s hotel industry is going through tough times. According to the executive officer of the Hotel Association of NYC, Vijay Dandapani, their hotel occupancy as of now is less than 10%.

And this is because of the travel restrictions due to the ongoing pandemic. It has also resulted in heavy price drops. The hotel who used to charge $336 daily is charging just $135 now. Also, due to the cancellation of events in NYC, the hotels are not getting enough customers.

Therefore many hotels have decided to shut down their business temporarily once again. According to industry executives, we can expect things to go back where it was by 2022. Because it will take at least one year for things to get back in place.