Many hotels won’t survive prolonged shut-down, industry leaders say

Business

CORONADO, Calif. – California’s regional stay-at-home order could devastate the state’s hotel industry in a matter of months, business leaders say.

As part of restrictions announced by Gov. Gavin Newsom to try to slow the spread of COVID-19, hotels in the Southern California region will only be able to offer rooms to essential workers. According to the American Hotel and Lodging Association, more than one third of the state’s hotels won’t be able to survive the next 3 months unders these conditions, and more than two thirds won’t make it past 6 months.

“We’ve lost about 80-percent of our business due to cancellations,” said Moises Olvera, general manager of La Avenida Inn, which sits across the street from the Hotel Del Coronado. His hotel is normally swamped with business in December, but “it’s like a ghost town out here now,” he said. 

“We give tours, and with no people around, there are no tours to give,” said Tony Perri, owner of Coronado Beach Company Island Tours and Beach Café.

His business banks on foot traffic from nearby Coronado hotels to survive.  However, that traffic mostly stopped with the stay-at-home order.

“We’ve been staying for five nights, visiting from Seattle,” said Nichole Walters as she was checking out Tuesday morning. She said she and her family felt comfortable staying despite the new order.

“We’re very careful and deliberate in how we live our lives, but we also think it’s important not to live in fear,” she said

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