Major Hotel CEOs Call on President for Relief

Hotel CEOs and small-business owners have come together to petition the president to provide much needed relief to the hospitality industry.

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CEOs of major hotel brands including Hilton, Hyatt, Marriot, IHG and Best Western, as well as smaller, independently owned hotels have written an open letter to the president, calling on him to provide the industry with relief by utilizing funds from the Main Street Lending Program (MSLP).

So far, only a small chunk of the $600 billion, available through the program, has been utilized. The current health and economic crisis caused by COVID-19 has left 3 out of every 10 hotel employees either laid off or furloughed until funds are readily available, while two-thirds of hotels report they will only last six more months without relief.

The accommodations and hospitality industry have an unemployment rate of 30%, compared to the national average of 7.9%. The hotel brands are demanding the president use his authority and call for the immediate modifications to the MSLP. The letter is below, in its entirety: 


October 15, 2020

The Honorable Donald J. Trump President of the United States The White House 

1600 Pennsylvania Avenue, NW Washington, D.C. 20500


Dear President Trump: 

The undersigned executives represent the breadth and depth of the lodging industry in the United States, which supported 8.3 million jobs prior to the COVID-19 pandemic and generated more than $660 billion towards the U.S. GDP. We are writing today to respectfully urge you to take immediate action to provide an injection of liquidity for industries hardest hit by this pandemic, including ours, by fully utilizing the Federal Reserve’s 13(3) emergency lending authority. This can be accomplished by establishing an asset- based lending facility or by replacing the rigid EBITDA leverage test with a loan-to-value ratio test. 


The Main Street Lending Program (MSLP) was established to provide up to $600 billion in financing for our nation’s small and medium-sized businesses that were in sound financial condition prior to the pandemic. Unfortunately, there is broad recognition that the MSLP continues to be underutilized and prevents the hardest hit businesses it was intended to support from accessing the program due to overly restrictive terms. To date, only a small fraction of $600 billion in available loans have been utilized while the remaining funds - which are so desperately needed by industries like ours - sit idle and go unused. 


This health and economic crisis has wreaked havoc on hotels in our industry, of which 60 percent operate as small businesses and nearly 50 percent are minority owned. Three out of every 10 hotel employees are now furloughed or laid off and more than two-thirds of hotels report that they will only be able to last six more months at current projected revenue and occupancy levels absent any further relief. As a result of COVID-19, the accommodations sector is now left with an unemployment rate of 30 percent compared to the national average of 7.9 percent. 


Mr. President, we believe you have the power to call for immediate modifications to the MSLP to increase participation and help thousands of businesses that have been crippled by the pandemic through no fault of their own. We strongly urge you to use your executive authority to direct the Treasury to encourage the Federal Reserve to amend and expand the Main Street Lending Program. Your engagement is desperately needed to support struggling businesses, stem the impending wave of foreclosures, and save millions of jobs to ensure the health of the entire American economy. 


Respectfully, 

Heather McCrory, Accor, North & Central America 

David Kong, Best Western Hotels & Resorts 

Patrick Pacious , Choice Hotels International 

Robert Palleschi , G6 Hospitality, LLC 

Chris Nassetta , Hilton 

Mark Hoplamazian , Hyatt Hotels Corporation 

Elie Maalouf , InterContinental Hotels Group 

Jonathan Tisch , Loews Hotels & Co 

Arne Sorenson , Marriott International 

Peter Strebel , Omni Hotels and Resorts 

James Alderman , Radisson Hotel Group 

John Russell , RLH Corporation 

Geoff Ballotti , Wyndham Hotels and Resorts 

Dave Johnson , Aimbridge Hospitality 

Monty Bennett , Ashford Inc 

Daniel Abernethy , Atrium Hospitality 

H P Rama , Auro Hotels 

Mark Carrier , B. F. Saul Company Hospitality Group 

Al Patel , Baywood Hotels 

Alex Cabanas , Benchmark Global Hospitality 

Joe Berger , BRE Hotels 

Robert Kline , Chartres Lodging Group 

Jeffrey Fisher , Chatham Lodging Trust 

Charles Lathem , Clarion Partners, LLC 

Mark Laport Concord Hospitality Enterprises Company

Keith Cline , CorePoint Lodging, Inc. 

Michael George , Crescent Hotels & Resorts 

John Belden , Davidson Hotels & Resorts 

Brooke Barrett , Denihan Hospitality 

Thomas Penny , Donohoe Hospitality Services 

Paul Kirwin , Global Hospitality Services 

Jay Shah , Hersha Hotels and Resorts 

Steve Barick , Highgate Hotels 

Michael Depatie , KHP 

Mike DeFrino, Kimpton Hotels and Restaurants

Mehul Patel , Newcrestimage 

Mit Shah , Noble Investment Group 

Corry Oakes , OTO Development 

Jeff Wagoner , Outrigger Hospitality Group 

Tarun Patel , Pacific Hospitality Company 

Jon Bortz , Pebblebrook Hotel Trust 

Keith Overton, Pioneering Resorts & Restaurants

Joseph Bojanowski , PM Hotel Group 

Lindsey Ueberroth , Preferred Hotels & Resorts 

Ben Erwin , PSAV 

Bob Rauch , RAR Hospitality 

Ben Seidel , Real Hospitality Group 

James Merkel , Rockbridge 

Colin Reed , Ryman Hospitality Properties 

Walter Isenberg , Sage Hospitality Group 

Prem Devadas , Salamander Hotels & Resorts 

Jeffrey Brown , Schahet Hotels 

Barry Sternlicht , Starwood Capital Group 

Navin Dimond , Stonebridge Companies 

Amanda Hite , STR 

David Hogin , Strategic Hotels & Resorts 

Daniel Hansen , Summit Hotel Properties 

Thomas Klein , TAK Hospitality 

Thomas Corcoran , TCOR Hotel Partners 

Terri Haack , Terranea Resort 

Robert Boykin , The Boykin Group 

Jack Damioli , The Broadmoor 

Steve Bartolin , The Broadmoor/Sea Island Co. 

Douglas Dreher , The Hotel Group 

Leland Pillsbury , TLG Investment Partners 

Rick Takach , Vesta Hospitality 

Len Wolman , Waterford Hotel Group 

Michael Medzigian , Watermark Lodging Trust, Inc. 

Majid Mangalji , Westmont Hospitality Group 

Bruce White , White Lodging Services 

Chip Rogers , American Hotel & Lodging Association 

Cecil Staton , Asian American Hotel Owners Association 

Lynn Mohrfeld , California Hotel & Lodging Association 

Michael Jacobson , Illinois Hotel & Lodging Association 

Kenneth Fearn , Integrated Capital, NABHOOD Chair 

Lynette Montoya , Latino Hotel Association 

John Longstreet, Pennsylvania Restaurant & Lodging Association

Eric Terry ,

Virginia Restaurant, Lodging & Travel Association

CC: Steven T. Mnuchin, Secretary, U.S. Department of Treasury

Jerome H. Powell, Chair, Board of Governors of the Federal

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