5 things to know: 28 May 2020
 
5 things to know: 28 May 2020
28 MAY 2020 9:29 AM

From the desks of the Hotel News Now editorial staff:

  • Disney World plans phased July reopening
  • Las Vegas resorts announce 4 June reopenings
  • US hotels will take years to recover, forecasts show
  • More than 40 million Americans have filed for unemployment
  • Fed reports businesses pessimistic about recovery pace

Disney World plans phased July reopening: Disney World in Florida announced its plans for a phased reopening of its Magic Kingdom and Animal Kingdom parks on 11 July and EPCOT and Hollywood Studios on 15 July, CNN reports. Disney had closed all its 12 parks around the world in response to the coronavirus pandemic, but it did reopen Shanghai Disneyland 11 May.

The reopening plans call for employees and guests being required to wear face coverings and have their temperatures screened before they enter the park, the article states. Disney will reduce the parks’ capacity and is putting parades, fireworks and other events that draw crowds on hold. It is also expanding contactless payments and increasing the number of hand-sanitizing stations.

The park’s Magic Kingdom is the world’s most-visited theme park and attracted more than 20 million visitors in 2018, the article states.

Las Vegas resorts announce 4 June reopenings: MGM Resorts International and Wynn Resorts have each announced their plans for reopening some of their properties in Las Vegas on 4 June.

MGM Resorts plans to reopen its Bellagio, New York-New York, MGM Grand Las Vegas and The Signature properties, according to a news release. The properties will have limited amenities upon reopening as well as a “Seven-Point Safety Plan” to keep employees and guests safe. The company plans to reopen additional amenities and properties as demand returns to The Strip.

Wynn Resorts will also reopen its Wynn Las Vegas on 4 June, according to a news release. The company is reopening both hotel towers, the casino and all restaurants in the property. The company is implementing several safety measures to ensure the health and safety of guests and employees.

U.S. hotels will take years to recover, forecasts show: Three recently released revised forecasts show the U.S. hotel industry will take years to return to pre-pandemic business, writes HNN’s Bryan Wroten. The situation is likely to improve later this year and continue into 2021, but hoteliers shouldn’t expect a quick turnaround, especially with average daily rate.

“As we’ve said in prior commentaries, the ADR rebound is most certainly not V-shaped, as we have seen in post-9/11 and 2009,” said Jan Freitag, SVP of lodging insights at STR. It has never been in the prior recoveries, and we don’t think that 2021 or 2022 are any exceptions.”

STR is the parent company of Hotel News Now.

More than 40 million Americans have filed for unemployment: Since the start of the COVID-19 pandemic, more than 40 million Americans have filed unemployment claims, equating to about one in four U.S. workers, The New York Times reports. Data from the U.S. Department of Labor shows another 2.1 million filed new claims last week.

The latest jobless claims might be a combination of those who recently lost their jobs as well as older claims as state governments work through a backlog, the article states.

“The report marks the eighth week in a row that new jobless filings dipped from their peak of almost 6.9 million, but the level is still far above historic highs,” the newspaper reports.

Fed reports businesses pessimistic about recovery pace: The Federal Reserve’s latest Beige Book survey shows that most businesses are pessimistic about how quickly the economic recovery is moving despite all states moving toward reopening, Forbes reports.

Among its findings, the Fed reported that worker’s health concerns, limited childcare options and newer unemployment benefits are making it more challenging to bring employees back, the article states. Consumer spending has fallen overall, but the worst areas hit are in the leisure and hospitality sectors. The Congressional Budget Office recently projected the jobless rate will remain above 15% through September.

Compiled by Bryan Wroten.

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