Member of Congress United States House of Representatives Washington, DC 20515 August 18, 2020 Dear Representative: The hotel industry has been decimated by the COVID-19 health crisis. According to the Bureau of Labor Statistics (BLS)1, the leisure and hospitality sector has lost 4.8 million jobs since February. That is more jobs than construction, manufacturing, retail, education, and health services combined. The human toll on our employees and our workforce is devastating, with less than half currently employed. The economic impact to our industry is equally as dramatic, estimated to be nine times greater than the September 11 terrorist attacks. According to CBRE and STR2, the industry is expected to lose more than fifty percent of its total revenue in 2020 – which would exceed $120 billion. Hotels, inns and bed-and-breakfasts are at the center of communities across the country -- creating long-term careers and opportunities for upward mobility, spurring economic growth, investing in communities, and serving America's travelers. Sixty-one percent (61%) of U.S. hotels (33,651 hotels) are considered small businesses. At its core, the hotel industry is an industry of people taking care of people and our single greatest asset is our workforce. The health and safety of our associates and our guests has been and continues to be the highest priority for the hotel industry. The historic CARES Act created by Congress and the Administration is a shining example of bi-partisan leadership to address one of the greatest challenges our nation has faced. It has played a vital role in preventing significant and long- lasting social and economic damage for millions of Americans that work in the hotel industry. It is critical that Congress to continues to work on solutions like the HEALS and HEROES Acts to ensure continuing, necessary relief for individuals and the hotel industry as a whole. In addition to our request for support for individuals impacted by the COVID-19 health crisis, there is an urgent need for commercial debt relief to prevent a further economic crisis. COVID-19 related delinquency rates for hotel mortgages, especially within the commercial mortgage-back securities (CMBS) market, are spiking to all-time highs. Hoteliers with CMBS loans account for nearly $90 billion of a total of $300 billion in hotel industry debt. These CMBS borrowers have been largely unable to secure forbearance from their loan servicers due to the complex structure of the loans. Hoteliers of all sizes utilize this type of debt financing, with 83% of CMBS debt hotels in loans with a balance under $15 million, according to Trepp data.3 Currently, nearly 24% of hotel CMBS loans are delinquent4 with significantly higher figures in major markets – examples include 50% in Chicago and 61% in Houston5. We strongly support the Helping Open Properties Endeavor (HOPE) Act (H.R. 7809). The HOPE Act is bipartisan legislation introduced by Representatives Van Taylor (R-TX), Al Lawson (D-FL), and Andy Barr (R-KY) intended to provide assistance to small businesses that operate in the ailing commercial real estate market. The HOPE Act would address the unique challenges of commercial real estate and provide commercial property owners the temporary liquidity they need 1 https://www.bls.gov/iag/tgs/iag70.htm#workforce 2 https://str.com/press-release/us-hotel-demand-not-expected-fully-recover-until-2023 3 Trepp CRE Securitized Debt Data, accessed 6/16/20 4 https://info.trepp.com/hubfs/Trepp%20July%202020%20Delinquency%20Report.pdf 5 https://info.trepp.com/trepptalk/a-tour-of-delinquency-rates-across-us-msa to keep their doors open in exchange for a preferred equity interest in the property. This legislation does not require any new funding and would utilize existing appropriations from the CARES Act Economic Stabilization Fund. The HOPE Act would allow business owners to keep their businesses running and retain and rehire our valued employees. Without action, an unprecedented wave of hotel foreclosures will ripple out from the commercial real estate market causing permanent job losses for thousands and the loss of billions in tax revenue to local municipalities supported by hotels. We urge you to please consider cosponsoring the HOPE Act (H.R. 7809) and for the Congress to pass this critical legislation without delay. Respectfully, Chip Rogers Cecil Staton President & CEO President & CEO American Hotel & Lodging Association (AHLA) Asian American Hotel Owners Association (AAHOA) Lynette Montoya Andy Ingraham President & CEO President & CEO Latino Hotel Association (LHA) National Association of Black Hotel Owners, Operators and Developers (NABHOOD) Mindy Hanan Jim Sprouse President & CEO Executive Director Alabama Restaurant & Hospitality Association Georgia Hotel & Lodging Association Alicia Maltby Steve Hewins Executive Director President and CEO Alaska Hotel & Lodging Association Hospitality Maine Kim Sabow Liz Rammer President & CEO President & CEO Arizona Lodging & Tourism Association Hospitality Minnesota Montine McNulty Vijay Dandapani Executive Director President Arkansas Hospitality Association Hotel Association of New York City Lynn Mohrfeld Solomon Keene President & CEO President & CEO California Hotel & Lodging Association Hotel Association of Washington DC Amie Mayhew Michael Jacobson President and CEO President & CEO Colorado Hotel & Lodging Association Illinois Hotel & Lodging Association Ginny Kozlowski Patrick Tamm Executive Director President & CEO Connecticut Lodging Association Indiana Restaurant & Lodging Association Bill Silva William Langkopp Chairman Executive Vice President Delaware Hotel & Lodging Association Louisiana Hotel & Lodging Association Carol Dover Amy Rohrer President & CEO President & CEO Florida Restaurant & Lodging Association Maryland Hotel & Lodging Association Paul Sacco Dale Venturini President and CEO President & CEO Massachusetts Lodging Association Rhode Island Hospitality Association Justin Winslow John Durst Chief Executive Officer President & CEO Michigan Restaurant & Lodging Association South Carolina Restaurant & Lodging Association Stuart Doggett Vicki Boyer Executive Director Executive Director Montana Lodging & Hospitality Association St. Louis Area Hotel Association Scott Merritt Rob Mortensen Executive Director President & CEO Nebraska Hotel & Lodging Association Tennessee Hospitality & Tourism Association Diane Gandy Scott Joslove President President & CEO Nevada Hotel & Lodging Association Texas Hotel & Lodging Association Joseph Simonetta Cody Adent Executive Director Executive Director New Jersey Hotel & Lodging Association Utah Tourism Industry Association Mark Dorr Besty Bishop President President New York State Hospitality & Tourism Association Vermont Chamber of Commerce Lynn Minges Eric Terry President & CEO President & CEO North Carolina Restaurant and Lodging Association Virginia Restaurant, Lodging, and Travel Association Joseph Savarise Anthony Anton Executive Director President & CEO Ohio Hotel & Lodging Association Washington Hospitality Association Patti Colley Carol Fulks Executive Vice President Executive Director Oklahoma Hotel & Lodging Association West Virginia Hospitality & Travel Association Jason Brandt Bill Elliott Chief Executive Officer CEO Oregon Restaurant & Lodging Association Wisconsin Hotel & Lodging Association John Longstreet President & CEO Pennsylvania Restaurant & Lodging Association Claudia Abrams Kelly Kneaper Motel6 Best Western Golden Lion Hotel Anchorage, AK (AK01) Anchorage, AK (AK01) Larell Baldwin Tia Lewis Northwest X Southern Hospitality Hyatt House Anchorage Anchorage, AK (AK01) Anchorage, AK (AK01) Lynda Foreman Richard Linton Travelodge By Wyndham Juneau Best Western Golden Lion Hotel Juneau, AK (AK01) Anchorage, AK (AK01) Adrienne Sweeney Robin Stansell Driftwood Inn PM Hotel Group Homer, AK (AK01) Sheffield, AL (AL04) Penny Groux Toby Wilson Perdido Beach Resort Wilson Hospitality Orange Beach, AL (AL01) Northport, AL (AL04) Deep Patel Stephanie Mcelmurray Wingate By Wyndham Mobile Ram Birmingham Hospitality Two Mobile, AL (AL01) Birmingham, AL (AL06) Teresa Sarver Chiman S Patel Perdido Beach Resort Hari Hospitality Orange Beach, AL (AL01) Birmingham, AL (AL06) Mallori Browming Amit Patel Springhill Suites 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Memphis Hotel And Lodging Association Hanceville, AL (AL04) Marion, AR (AR01) Shirish Patel Jeff Mcclure Shoals Hospitality Inc Doubletree Little Rock Muscle Shoals, AL (AL04) Little Rock, AR (AR02) Harshadbhai Patel Purvi Patel Americas Best Value Inn Van Buren Lodging North