When the coronavirus caused much of San Francisco to go on lockdown in mid-March, many of the hotels that were already preparing for an extended stint of low occupancy levels offered close to 10,000 rooms to house patients, homeless individuals and others in need.
Local hotels here are beginning to follow suit.
In Anaheim, close to 50 hotels out of the city’s total 130 properties had shuttered as of early last week. Some of these hotels are volunteering their space, should the need arise, according to city officials.
“Several hotels have come forward offering their spaces for a variety of uses, and we are ready to help coordinate,” said city spokesman Mike Lyster. “It’s much easier to have a coalition of the willing, than to have this responsibility thrust upon you.”
Names of the properties offering their services were undisclosed; officials cited confidentiality reasons.
Other cities, including Laguna Woods, are enacting similar plans for their unused hotels.
Data Help
The American Hotel and Lodging Association recently introduced a nationwide program, Hotels for Hope, to coordinate these types of efforts.
It created a database that can help federal and local governments connect with willing hotel partners. So far, it says it has identified 6,500 such properties.
The move is seen as beneficial for the city and those affected, and in turn, helps out with the hotel operator’s bottom line, as city and state funding is available to provide grants in exchange for the space.
Low Occupancy
Before California Governor Gavin Newsom issued the stay-at-home order, hotels in San Francisco were hesitant to give up their rooms to be used at the discretion of the city.
After the order, when tourism became virtually nonexistent, hotels appeared to change their minds, according to industry veteran Alan Reay.
“When you’re running 0% occupancy, why wouldn’t they do that?” said Reay, of Irvine hotel brokerage and research firm Atlas Hospitality Group.
Data from STR said that during the week of March 15-21, nationwide U.S. hotel occupancy declined nearly 60% year-over-year to 30%; and revenue per available room dropped about 70%.
State funding
Types of uses from Orange County hotels could run the gamut, with some offering to house COVID-19 patients, some offering space for homeless individuals, and others looking to house first responders and police officers.
At least one property in South OC was tapped for such uses last week by the Orange County Health Care Agency.
Ayres Hotel Laguna Woods began a month-to-month lease with the OCHCA, which will use the hotel to house “men and women in the healthcare industry, and at-risk members of the community,” the 138-room property said in a statement.
The hotel did not mention how long the lease would run, but noted that reservations booked for April 1 to Aug. 31 would be canceled.
An undisclosed third-party nonprofit will manage the hotel on behalf of the OCHCA.
Following the announcement, the city issued a statement of its own, noting that the property would be used for homeless individuals “who have either already contracted, or are at high risk for contracting, COVID-19.”
“The agreement was made by the County of Orange and the Ayres Hotel without advice, consultation, or advance warning of any kind afforded to the City of Laguna Woods,” the statement said.
Laguna Woods Mayor Noel Hatch said the decision is a concerning one, noting that more than 80% of the city’s 18,000 residents are 65 years or older and already at high risk of contracting COVID-19.
“This decision was patently ill-advised and will create unnecessary additional risk.”
