The world's major hotel brands are being forced to make tough decisions. Both Marriott and Hilton will be closing properties around the country in the days and weeks to come. Marriott's CEO has already warned that most hotels in major cities around the country will be forced to shut temporarily while the world waits out the coronavirus crisis. The hotel chain also announced that it will begin furloughing what could turn into thousands of employees in the days to come. Marriott's 401-room W Hotel in San Francisco has already shut its door temporarily. Closures are expected to hit all 30 brands under the Marriott umbrella.
Hilton isn't in any better shape. Hilton's CEO announced plans to close most hotels located in major cities around the United States during a recent meeting with President Trump. The hotel chain has already closed high-profile properties in New York and Washington. Occupancy rates at hotels in the United States have fallen substantially in recent weeks. Occupancy rates in hubs like Seattle, San Francisco and Boston are already below 20 percent. This unprecedented decrease in demand means that room rates are expected to stay low for the foreseeable future.
Most hotel chains around the world have big expansion plans for 2020. Marriott alone plans to open more than 30 luxury hotels around the world this year. Hilton has plans to open new properties in Beijing and Okinawa this summer. No word has been given yet regarding whether or not the hotel chains plan to delay hotel openings around the world.