Though many have shown a continued reluctance to travel, whether for work or play, members of the hotel industry have remained optimistic business will return while ramping up safety measures.
Following the mid-March county health order requiring residents shelter in place, the hotel industry, like many, experienced huge drops in revenue. John Hutar, the president and CEO of the San Mateo County Silicon Valley Convention and Visitors Bureau, said the hit may take up to three or four years to recover.
“This recovery is very different. It’s all about safety and emotion,” said Hutar.
The industry has experienced revenue losses in the past such as after the terrorist attack on the World Trade Center in 2011, or during the 2008 recession, but Hutar said none of those events compare to current revenue losses during the pandemic.
Hotels along the Bayshore would normally see occupancy filled at nearly 90% largely due to traffic from the San Francisco International Airport, but those numbers dropped to single digits in March, April and May said Hutar. Along the coast, hotels have seen slightly more activity typically on weekends to have what Hutar referred to as a “staycation,” a short vacation not too far from home.
“Folks are doing hikes and need a change of scenery while they’re sheltering,” said Hutar.
Despite weekend getaways and some essential traveling, Hutar said the once $1.1 billion industry in 2019 is expected to lose up to 60% of revenue for 2020 according to conservative estimates. While the situation appears financially bleak, Hutar said hotel leaders have used the time to ramp up health protocols and retained staff to do deep cleanings of the grounds.
“During this downtime we worked hard with our partners on sanitation protocol and all those things that would need to happen,” said Hutar who said partners have been encouraged to take the Reopen and Ready pledge, making a commitment to practice safety protocol as suggested by state and county officials.
To ensure public safety during the current crisis, hotel staff across the county have been tasked with raising cleaning standards by disinfecting frequently touched surfaces multiple times a day such as railings, elevators and door handles.
“It’s a whole new training process. It’s like learning how to clean a room all over again,” said Jim McGuire, the general manager of Best Western Plus Grosvenor Hotel in South San Francisco and president of the South San Francisco Chamber of Commerce.
While visitors will be required to wear face coverings and to social distance in public spaces, McGuire said contact with staff would also be limited to ensure the safety of both customers and employees. At his hotel, the complimentary buffet once offered to guests has been switched to prepackaged items to limit contamination, and housekeeping during an individual’s stay will only be done when requested by the customer. Many establishments have adopted a similar protocol.
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“It’s been great with little or no resistance from guests. They want to make sure they’re safe and so do we,” said McGuire. “It’s been very, very well perceived.”
McGuire also said rooms are left dormant for 48 to 72 hours following a visitor’s departure. Staff then enter rooms with personal protective equipment to dispose of waste and thoroughly disinfect all items in the room. Before the room is opened for use to another visitor, it is sprayed down with an electrostatic fogger, a machine used to disinfect surfaces using an electrostatically charged special solution combined with air.
Dana Dahl, the general manager of Beach House in Half Moon Bay, said staff has taken similar steps toward preventing the spread of the highly-infectious respiratory disease while also providing a hospitable experience.
“One of the most important parts of having a hotel open up right now is safety for guests and employees. Our guests do have a little bit of a different experience than they did preCOVID,” said Dahl. “We’re close to the water and that’s what people are looking for right now.”
The hotel reopened May 15, after closing when the order was first announced. Dahl said occupancy at the hotel has been reduced to 60% for safety reasons when on average during June and July the hotel is filled to 90%. Despite the reduction in how many customers are welcomed at once, Dahl said she has called back almost all of her staff.
“It takes more people to run a hotel now. It’s taking a lot longer because they’re sanitizing every surface,” said Dahl.
Though the occupancy reduction and high number of staffing was done to ensure customer safety and to keep team members employed, Dahl said the business model is not sustainable but must be done.
“We’re all hoping we’re not living with COVID for years to come. ...That’s a crystal ball none of us can read right now,” she said.
McGuire, Dahl and Hutar have all remained positive as the county moves forward with reopening and city officials have shared that sentiment. Alex Greenwood, economic and community development director of South San Francisco said multiple projects are in various planning stages including a 350 room hotel on Oyster Point.
“As bad as revenue is now, we’re also seeing great confidence in the hotel community for long-term prospects for the market. ...There’s a recognition that South San Francisco, North County, is a good place long term for hotels,” said Greenwood.

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