CEOs of major hotel brands including Hilton, Hyatt, Marriot, IHG and Best Western, as well as smaller, independently owned hotels have written an open letter to the president, calling on him to provide the industry with relief by utilizing funds from the Main Street Lending Program (MSLP).
So far, only a small chunk of the $600 billion, available through the program, has been utilized. The current health and economic crisis caused by COVID-19 has left 3 out of every 10 hotel employees either laid off or furloughed until funds are readily available, while two-thirds of hotels report they will only last six more months without relief.
The accommodations and hospitality industry have an unemployment rate of 30%, compared to the national average of 7.9%. The hotel brands are demanding the president use his authority and call for the immediate modifications to the MSLP. The letter is below, in its entirety:
October 15, 2020
The Honorable Donald J. Trump President of the United States The White House
1600 Pennsylvania Avenue, NW Washington, D.C. 20500
Dear President Trump:
The undersigned executives represent the breadth and depth of the lodging industry in the United States, which supported 8.3 million jobs prior to the COVID-19 pandemic and generated more than $660 billion towards the U.S. GDP. We are writing today to respectfully urge you to take immediate action to provide an injection of liquidity for industries hardest hit by this pandemic, including ours, by fully utilizing the Federal Reserve’s 13(3) emergency lending authority. This can be accomplished by establishing an asset- based lending facility or by replacing the rigid EBITDA leverage test with a loan-to-value ratio test.
The Main Street Lending Program (MSLP) was established to provide up to $600 billion in financing for our nation’s small and medium-sized businesses that were in sound financial condition prior to the pandemic. Unfortunately, there is broad recognition that the MSLP continues to be underutilized and prevents the hardest hit businesses it was intended to support from accessing the program due to overly restrictive terms. To date, only a small fraction of $600 billion in available loans have been utilized while the remaining funds - which are so desperately needed by industries like ours - sit idle and go unused.
This health and economic crisis has wreaked havoc on hotels in our industry, of which 60 percent operate as small businesses and nearly 50 percent are minority owned. Three out of every 10 hotel employees are now furloughed or laid off and more than two-thirds of hotels report that they will only be able to last six more months at current projected revenue and occupancy levels absent any further relief. As a result of COVID-19, the accommodations sector is now left with an unemployment rate of 30 percent compared to the national average of 7.9 percent.
Mr. President, we believe you have the power to call for immediate modifications to the MSLP to increase participation and help thousands of businesses that have been crippled by the pandemic through no fault of their own. We strongly urge you to use your executive authority to direct the Treasury to encourage the Federal Reserve to amend and expand the Main Street Lending Program. Your engagement is desperately needed to support struggling businesses, stem the impending wave of foreclosures, and save millions of jobs to ensure the health of the entire American economy.
Respectfully,
Heather McCrory, Accor, North & Central America
David Kong, Best Western Hotels & Resorts
Patrick Pacious , Choice Hotels International
Robert Palleschi , G6 Hospitality, LLC
Chris Nassetta , Hilton
Mark Hoplamazian , Hyatt Hotels Corporation
Elie Maalouf , InterContinental Hotels Group
Jonathan Tisch , Loews Hotels & Co
Arne Sorenson , Marriott International
Peter Strebel , Omni Hotels and Resorts
James Alderman , Radisson Hotel Group
John Russell , RLH Corporation
Geoff Ballotti , Wyndham Hotels and Resorts
Dave Johnson , Aimbridge Hospitality
Monty Bennett , Ashford Inc
Daniel Abernethy , Atrium Hospitality
H P Rama , Auro Hotels
Mark Carrier , B. F. Saul Company Hospitality Group
Al Patel , Baywood Hotels
Alex Cabanas , Benchmark Global Hospitality
Joe Berger , BRE Hotels
Robert Kline , Chartres Lodging Group
Jeffrey Fisher , Chatham Lodging Trust
Charles Lathem , Clarion Partners, LLC
Mark Laport Concord Hospitality Enterprises Company
Keith Cline , CorePoint Lodging, Inc.
Michael George , Crescent Hotels & Resorts
John Belden , Davidson Hotels & Resorts
Brooke Barrett , Denihan Hospitality
Thomas Penny , Donohoe Hospitality Services
Paul Kirwin , Global Hospitality Services
Jay Shah , Hersha Hotels and Resorts
Steve Barick , Highgate Hotels
Michael Depatie , KHP
Mike DeFrino, Kimpton Hotels and Restaurants
Mehul Patel , Newcrestimage
Mit Shah , Noble Investment Group
Corry Oakes , OTO Development
Jeff Wagoner , Outrigger Hospitality Group
Tarun Patel , Pacific Hospitality Company
Jon Bortz , Pebblebrook Hotel Trust
Keith Overton, Pioneering Resorts & Restaurants
Joseph Bojanowski , PM Hotel Group
Lindsey Ueberroth , Preferred Hotels & Resorts
Ben Erwin , PSAV
Bob Rauch , RAR Hospitality
Ben Seidel , Real Hospitality Group
James Merkel , Rockbridge
Colin Reed , Ryman Hospitality Properties
Walter Isenberg , Sage Hospitality Group
Prem Devadas , Salamander Hotels & Resorts
Jeffrey Brown , Schahet Hotels
Barry Sternlicht , Starwood Capital Group
Navin Dimond , Stonebridge Companies
Amanda Hite , STR
David Hogin , Strategic Hotels & Resorts
Daniel Hansen , Summit Hotel Properties
Thomas Klein , TAK Hospitality
Thomas Corcoran , TCOR Hotel Partners
Terri Haack , Terranea Resort
Robert Boykin , The Boykin Group
Jack Damioli , The Broadmoor
Steve Bartolin , The Broadmoor/Sea Island Co.
Douglas Dreher , The Hotel Group
Leland Pillsbury , TLG Investment Partners
Rick Takach , Vesta Hospitality
Len Wolman , Waterford Hotel Group
Michael Medzigian , Watermark Lodging Trust, Inc.
Majid Mangalji , Westmont Hospitality Group
Bruce White , White Lodging Services
Chip Rogers , American Hotel & Lodging Association
Cecil Staton , Asian American Hotel Owners Association
Lynn Mohrfeld , California Hotel & Lodging Association
Michael Jacobson , Illinois Hotel & Lodging Association
Kenneth Fearn , Integrated Capital, NABHOOD Chair
Lynette Montoya , Latino Hotel Association
John Longstreet, Pennsylvania Restaurant & Lodging Association
Eric Terry ,
Virginia Restaurant, Lodging & Travel Association
CC: Steven T. Mnuchin, Secretary, U.S. Department of Treasury
Jerome H. Powell, Chair, Board of Governors of the Federal
