‘Will we survive’: Hotels lose ‘unbelievable’ amount of business from coronavirus scare
As expected with the uncertainty and impact of the coronavirus pandemic, the Myrtle Beach area’s hotel occupancy rates took a dip last week, though the accommodations providers didn’t take a huge hit.
This week, however, has been much more damaging.
According to numbers collected by the South Carolina Department of Parks, Recreation & Tourism, hotel occupancy was down 15.3 percent in the Grand Strand area for the week ending Saturday compared to the same week last year with an average total occupancy rate for the week of 54.2 percent.
Matthew Brittain, chief executive officer of Brittain Resorts & Hotels, which operates 10 Strand oceanfront condominium hotels, said his properties all have occupancy rates this week of less than 50 percent, with some dipping below 20 percent.
“It is a crisis,” Brittain said. “We’ve lost an unbelievable amount of business, and I don’t know how you describe it. It’s massive.”
U.S. and state government officials have urged people to self-quarantine and keep 6 feet of distance from the nearest person, and S.C. Gov. Henry McMaster ordered all bars and restaurants to close and offer take-out or delivery only. Brittain believes the Myrtle Beach tourism market will quickly bounce back when coronavirus restrictions are removed, whenever that is.
“Will we survive? I think we will,” he said. “Once that [recovery] happens, I think there will be tremendous demand to come to Myrtle Beach and we’ll be back on our feet quickly.”
Other states have enacted strict limitations on their residents, including California and New York, which have instituted essential lockdowns that allow only employees at essential businesses to go to work. Something similar in South Carolina could shut down the area’s hotels.
Brittain said he wants to follow what health officials believe are the safest policies, but he’s hoping those won’t force the closing of his properties.
“I’m hoping that will not occur,” Brittain said. “I can’t speak to the medical and health side of this. If wrecking the economy is the price we have to pay then that’s something I can’t determine. I hope the governor would recognize you can come to the beach and stay in a hotel room and abide by the lockdown procedures.
“But health is the most important thing. If we need to do these things, we need to do them and we’ll do our part. But we’ll also try to keep the economy going if we can.”
If there are hotel shutdowns, snowbirds fall into a gray area. They can be considered part-time residents who generally live in the area for between one and three months per year through March, often in hotel rooms. Will they be forced to leave, and will hotel staff be there to service their rooms if not? Many snowbirds are Canadian, and returning home has become more complicated.
“We would have to get clarification for that,” Brittain said. “I don’t know if we could put them on the street or would want to, and we might have to keep the building running. There would need to be discussion on that.”
For the week of March 8-14, occupancy for weekdays, consisting of Sunday through Thursday nights, averaged 51.6 percent according to SCPRT. The two weekend nights averaged 60.7 for the total occupancy rate of 54.2.
Myrtle Beach’s 15.3 percent drop compared favorably to a 17.2 percent drop compared to the same week last year in the state of South Carolina, and 22.7 percent plunge in the entire South Atlantic region.
The SCPRT’s statistics are based on a weekly report it receives from STR Inc., a Tennessee-based company that tracks supply and demand data for industries including hotels.
The occupancy numbers do not include short-term rentals through businesses that rent privately-owned residences such as Airbnb and VRBO.
The state agency’s numbers show a greater occupancy rate yet greater decline than those compiled by the Brittain Center for Resort Tourism at Coastal Carolina University, which were based on a sample of voluntary submissions from 19 Grand Strand hotels/condotels and an area campground.
The Brittain Center showed midweek occupancy at 41.8 percent and weekend occupancy at 68.2 percent for a weekly aggregate average of 49.2 and drop of 7.7 percent compared to the same week in 2019.
Will you be refunded if you cancel your trip?
Though there is talk on social media about companies not refunding people who have canceled trips to the area, some Myrtle Beach area rental companies are relaxing policies as the coronavirus pandemic presents a unique challenge.
Alex Husner, chief marketing officer with Condo World Resort Properties in Myrtle Beach, said Condo World is experiencing cancellations this week, but are working with travelers to refund their money or move their reservations to a future date.
“Our accommodations are still open,” she said. “They can come and cook their own meals and enjoy the beach.”
Husner said she recommends those who plan to cancel trips to the area reach out to the company they booked through to learn their options about refunds or postponements.
Bradley Vaughan, sales and marketing manager with Legends Golf Resort, said they are waiving cancellation fees and allowing people to cancel without penalty. He said many folks are moving their reservations to the fall.
Elliott Realty in North Myrtle Beach is being flexible with its cancellation policy “by refunding guests on an individual basis particularly for stays whose dates of arrival are in the near future,” said Brandon Cox, vice president of operations.
“The impacts of COVID-19 are presenting unique challenges for individuals and businesses across the country,” he said. “The situation continues to be fluid with new and changing information available each day.”
The company is also providing options, including working with people to schedule trips on future dates.
Brittain said his company has no cancellation penalties. He estimates more than half of those who have canceled are attempting to rebook their reservations on a future date rather than cancel altogether, and agents are available to assist them with either scenario.
“A lot of our guests are just moving,” Brittain said. “It’s not like they don’t want to come, they’re moving their reservations to another date.”
