Coronavirus Is Devastating NYC Hotel Industry: Union, Reports Say

NEW YORK, NY — The outbreak of coronavirus in New York City is devastating businesses throughout the city. Bars have been forced to shut down, entertainment venues have canceled all events and restaurants have been operating on a takeout-only basis — but the industry that may get hit the hardest is hotels, union leaders representing hotel workers said Thursday.

As many as 95% of all hotel workers may be laid off as soon as next week, Hotel and Motel Trades Council chief Peter Ward said Thursday during an appearance on New York 1. Ward said that the economic impact of coronavirus may be felt harder than that of 9/11 and the 2008 recession combined.

"Hotels are getting ready to close down, it's getting rapidly towards that — some have already closed," Ward said during the New York 1 interview. "Even the ones that are open are operating with occupancy rates that are below 20%, in many cases below 10%."

Ward said that his union is working with the hotel industry to provide health coverage for workers who get laid off. Many workers will also be getting paid for unused paid time off, sick days and holidays, Ward said. Some union workers may be able to go back to work if hotels are reopened by the government to be used for alternative purposes, the union leader said.

Food service workers at hotels and other businesses throughout the New York City area will also be hit hard, José Maldonado, secretary-treasurer of UNITE HERE Local 100, said during a call with reporters this week.

"Country club, arenas, hotels, mostly all our members are unemployed," Maldonado said. "They don't know about how they’re going to pay their health insurance."

Maldonado urged the government to bolster the safety net as workers continue to lose jobs, saying that $500 for unemployment won't cover essential costs such as rent and food.

See Ward's full interview here.