About 25% of Marriott hotels shuttered worldwide due to coronavirus

About 25% of Marriott’s 7,300 hotels around the world are temporarily closed as a result of the new coronavirus travel fallout, according to a business update from the company.

The hotel chain also anticipates more closures ahead, as well as diminishing revenue per room. The company doesn’t think business will get better until governments have removed restrictions and the coronavirus spread has stabilized.

North American occupancy levels are at about 10%, and more than 870 hotels are temporarily closed (16%). Marriott is expecting to report that its March revenue per room fell 60% globally in March, roughly the same as in the U.S. alone (57%). 

The company expects to report that in March revenue per available room decreased approximately 60% worldwide, reflecting declines of around 57% in North America.

Marriott is also doing its part to give back during the pandemic: It’s donating $10 million in hotel stays for doctors and nurses. The company’s efforts are focused on the areas of the country most affected by coronavirus, including New York and Newark, New Jersey; New Orleans; Detroit; Los Angeles; Las Vegas and Washington.

Across the U.S., about 80% of hotel rooms are empty.

Hotel occupancy, average daily rate and revenue per available room were down significantly year-over-year for the week of March 29 through April 4, per a new report from STR, a firm that analyzes hospitality industry data.

Compared with the week of March 31 to April 6 last year, hotel occupancy was down nearly 70%, with only 21.6% rooms filled.

“Data worsened a bit from last week, and certain patterns were extended around occupancy,” Jan Freitag, STR’s senior VP of lodging insights, said in a statement.

Half of the hotels in the U.S. could shutter amid the ongoing coronavirus pandemic, Chip Rogers, president and CEO of the American Hotel Lodging Association told USA TODAY last month.

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