New Year State of The Hospitality Industry
Reports from American Hotel and Lodging Association (AHLA) and National Restaurant Association (NRA)

At the beginning of the new year, both the National Restaurant Association (NRA) and American Hotel & Lodging Association (AHLA) released their respective State of the Industry Reports. Both measured the impact of the coronavirus pandemic on the hospitality industry, examined the current state of the industry and the path to reintegration while focusing in on key pillars specific to restaurants and to hotels.
AHLA’s State of the Hotel Industry 2021
The pandemic has been devastating to the hospitality industry workforce, which is down nearly 4 million jobs compared to the same time in 2019. While some 200,000 jobs are expected to be filled this year, overall, the accommodations sector faces an 18.9% unemployment rate, according to the Bureau of Labor Statistics. In addition, half of U.S. hotel rooms are projected to remain empty in 2021.
Business travel, which comprises the largest source of hotel revenue, remains nearly nonexistent, but it is expected to begin a slow return in the second half of 2021. Among frequent business travelers who are currently employed, 29% expect to attend their first business conference in the first half of 2021, 36% in the second half of the year and 20% more than a year from now. Business travel is not expected to return to 2019 levels until at least 2023 or 2024.
Leisure travel is expected to return first, with consumers optimistic about national distribution of a vaccine and with that an ability to travel again in 2021. The report found that heading into 2021, consumers are optimistic about travel, with 56% of Americans saying they are likely to travel for leisure or vacation in 2021. While 34% of adults are already comfortable staying in a hotel, 48% say their comfort is tied to vaccination in some way.
Top Findings:
1. Hotels will add 200,000 direct hotel operations jobs in 2021 but will remain nearly 500,000 jobs below the industry’s pre-pandemic employment level of 2.3 million employees.
2. Half of U.S. hotel rooms are projected to remain empty.
3. Business travel is forecasted to be down 85% compared to 2019 through April 2021, and then only begin ticking up slightly.
4. 56% of consumers say they expect to travel for leisure, roughly the same amount as in an average year.
5. Nearly half of consumers see vaccine distribution as key to travel.
6. When selecting a hotel, enhanced cleaning and hygiene practices rank as guests’ number two priority, behind price.
“COVID-19 has wiped out 10 years of hotel job growth. Yet the hallmark of hospitality is endless optimism, and I am confident in the future of our industry,” said Chip Rogers, president and CEO of AHLA.
“Despite the challenges facing the hotel industry, we are resilient. Hotels across the country are focused on creating an environment ready for guests when travel begins to return. AHLA is eager to work with the new Administration and Congress on policies that will ultimately help bring back travel, from helping small business hoteliers keep their doors open to ramping up vaccine distribution and testing. Together, we can bring back jobs and reignite a continued investment in the communities we serve,” said Rogers.
The resurgence of COVID-19, the emergence of new strains, and a slow vaccine rollout have added to the challenges the hotel industry faces this year. With travel demand continuing to lag normal levels, national and state projections for 2021 show a slow rebound for the industry and then accelerating in 2022.
The hotel industry experienced the most devastating year on record in 2020, resulting in historically low occupancy, massive job loss, and hotel closures across the country. Hotels were one of the first industries affected by the pandemic after travel was forced to a virtual halt in early 2020, and it will be one of the last to recover. The impact of COVID-19 on the travel industry so far has been nine times that of 9/11.
AHLA’s State of the Hotel Industry 2021
The pandemic has been devastating to the hospitality industry workforce, which is down nearly 4 million jobs compared to the same time in 2019. While some 200,000 jobs are expected to be filled this year, overall, the accommodations sector faces an 18.9% unemployment rate, according to the Bureau of Labor Statistics. In addition, half of U.S. hotel rooms are projected to remain empty in 2021.
Business travel, which comprises the largest source of hotel revenue, remains nearly nonexistent, but it is expected to begin a slow return in the second half of 2021. Among frequent business travelers who are currently employed, 29% expect to attend their first business conference in the first half of 2021, 36% in the second half of the year and 20% more than a year from now. Business travel is not expected to return to 2019 levels until at least 2023 or 2024.
Leisure travel is expected to return first, with consumers optimistic about national distribution of a vaccine and with that an ability to travel again in 2021. The report found that heading into 2021, consumers are optimistic about travel, with 56% of Americans saying they are likely to travel for leisure or vacation in 2021. While 34% of adults are already comfortable staying in a hotel, 48% say their comfort is tied to vaccination in some way.
Top Findings:
1. Hotels will add 200,000 direct hotel operations jobs in 2021 but will remain nearly 500,000 jobs below the industry’s pre-pandemic employment level of 2.3 million employees.
2. Half of U.S. hotel rooms are projected to remain empty.
3. Business travel is forecasted to be down 85% compared to 2019 through April 2021, and then only begin ticking up slightly.
4. 56% of consumers say they expect to travel for leisure, roughly the same amount as in an average year.
5. Nearly half of consumers see vaccine distribution as key to travel.
6. When selecting a hotel, enhanced cleaning and hygiene practices rank as guests’ number two priority, behind price.
“COVID-19 has wiped out 10 years of hotel job growth. Yet the hallmark of hospitality is endless optimism, and I am confident in the future of our industry,” said Chip Rogers, president and CEO of AHLA.
“Despite the challenges facing the hotel industry, we are resilient. Hotels across the country are focused on creating an environment ready for guests when travel begins to return. AHLA is eager to work with the new Administration and Congress on policies that will ultimately help bring back travel, from helping small business hoteliers keep their doors open to ramping up vaccine distribution and testing. Together, we can bring back jobs and reignite a continued investment in the communities we serve,” said Rogers.
The resurgence of COVID-19, the emergence of new strains, and a slow vaccine rollout have added to the challenges the hotel industry faces this year. With travel demand continuing to lag normal levels, national and state projections for 2021 show a slow rebound for the industry and then accelerating in 2022.
The hotel industry experienced the most devastating year on record in 2020, resulting in historically low occupancy, massive job loss, and hotel closures across the country. Hotels were one of the first industries affected by the pandemic after travel was forced to a virtual halt in early 2020, and it will be one of the last to recover. The impact of COVID-19 on the travel industry so far has been nine times that of 9/11.

NRA’s 2021 State of the Restaurant Industry Report
The 2021 State of the Restaurant Industry Report measures the impact of the coronavirus pandemic on the restaurant industry and examines the current state of key pillars including technology and off-premises, labor, and menu trends across segments based on a survey of 6,000 restaurant operators and consumer preferences from a survey of 1,000 adults. The report also provides a look at the path to recovery for chains, franchises, and independents and the year of transition ahead.
Key Findings:
Accelerated Development and Adoption of Technology and Off-Premises
State and local mandates forced operators to make developments to streamline or enhance off-premises and contactless capabilities, and many restaurants across all segments have become more efficient as a result by adopting more technology. Takeout and delivery have become a part of people’s routines with 68% of consumers more likely to purchase takeout from a restaurant than before the pandemic and 53% of consumers that say takeout and delivery is essential to the way they live.
Legacy Businesses Lost
Of restaurants that closed for good in 2020, the majority were well-established businesses and fixtures in their communities. These operators had been in business, on average, for 16 years, and 16% of them had been open for at least 30 years.
Devastating Year for the Restaurant Workforce
The restaurant and foodservice industry were projected to provide 15.6 million jobs in 2020 representing 10% of all payroll jobs in the economy. The impact of the pandemic has caused staffing levels to fall across all restaurant and foodservice segments with restaurant employment below pre-pandemic levels in 47 states and D.C.
Streamlined Menus with Comfort Food and Alcohol To Go
While restaurants continue to optimize and streamline operations, their menus prove no exception with 63% of fine dining operators and half of casual and family dining operators saying they have fewer items on the menu than before the pandemic. The availability of alcohol to go with takeout orders is also an influence in restaurant choice.
Pent-Up Consumer Demand Remains High
There is no doubt consumers are ready to return to restaurants. Restaurants are an integral part of our social fabric, and 6 in 10 adults say restaurants are an essential part of their lifestyle. In late April 2020, 83% of adults said they were not eating on-premises at restaurants as often as they’d like, a big jump from the 45% reported in January 2020. Baby boomers really want to return to restaurants, beating out Gen Z adults and millennials who say they are not eating on-premises at restaurants as often as they’d like.
“Restaurants are the cornerstone of our communities, and our research shows a clear consumer desire to enjoy restaurants on-premises more than they have been able to during the pandemic. We’ve also found that even as the vaccine becomes more available and more social occasions return to restaurants, consumers will continue to desire expanded off-premises options going forward. Both will continue to be key for industry growth,” said Hudson Riehle, Senior Vice President, Research and Knowledge Group, National Restaurant Association. “With more than half of adults saying that restaurants are an essential part of their lifestyle, we are confident that, with time, the industry is positioned for successful recovery.”
To download the AHLA or NRA State of the Industry reports visit ahla.org or restaurant.org.
The 2021 State of the Restaurant Industry Report measures the impact of the coronavirus pandemic on the restaurant industry and examines the current state of key pillars including technology and off-premises, labor, and menu trends across segments based on a survey of 6,000 restaurant operators and consumer preferences from a survey of 1,000 adults. The report also provides a look at the path to recovery for chains, franchises, and independents and the year of transition ahead.
Key Findings:
- Restaurant and foodservice industry sales fell by $240 billion in 2020 from an expected level of $899 billion.
- As of December 1, 2020, more than 110,000 eating and drinking places were closed for business temporarily, or for good.
- The eating and drinking place sector finished 2020 nearly 2.5 million jobs below its pre-coronavirus level.
Accelerated Development and Adoption of Technology and Off-Premises
State and local mandates forced operators to make developments to streamline or enhance off-premises and contactless capabilities, and many restaurants across all segments have become more efficient as a result by adopting more technology. Takeout and delivery have become a part of people’s routines with 68% of consumers more likely to purchase takeout from a restaurant than before the pandemic and 53% of consumers that say takeout and delivery is essential to the way they live.
Legacy Businesses Lost
Of restaurants that closed for good in 2020, the majority were well-established businesses and fixtures in their communities. These operators had been in business, on average, for 16 years, and 16% of them had been open for at least 30 years.
Devastating Year for the Restaurant Workforce
The restaurant and foodservice industry were projected to provide 15.6 million jobs in 2020 representing 10% of all payroll jobs in the economy. The impact of the pandemic has caused staffing levels to fall across all restaurant and foodservice segments with restaurant employment below pre-pandemic levels in 47 states and D.C.
Streamlined Menus with Comfort Food and Alcohol To Go
While restaurants continue to optimize and streamline operations, their menus prove no exception with 63% of fine dining operators and half of casual and family dining operators saying they have fewer items on the menu than before the pandemic. The availability of alcohol to go with takeout orders is also an influence in restaurant choice.
Pent-Up Consumer Demand Remains High
There is no doubt consumers are ready to return to restaurants. Restaurants are an integral part of our social fabric, and 6 in 10 adults say restaurants are an essential part of their lifestyle. In late April 2020, 83% of adults said they were not eating on-premises at restaurants as often as they’d like, a big jump from the 45% reported in January 2020. Baby boomers really want to return to restaurants, beating out Gen Z adults and millennials who say they are not eating on-premises at restaurants as often as they’d like.
“Restaurants are the cornerstone of our communities, and our research shows a clear consumer desire to enjoy restaurants on-premises more than they have been able to during the pandemic. We’ve also found that even as the vaccine becomes more available and more social occasions return to restaurants, consumers will continue to desire expanded off-premises options going forward. Both will continue to be key for industry growth,” said Hudson Riehle, Senior Vice President, Research and Knowledge Group, National Restaurant Association. “With more than half of adults saying that restaurants are an essential part of their lifestyle, we are confident that, with time, the industry is positioned for successful recovery.”
To download the AHLA or NRA State of the Industry reports visit ahla.org or restaurant.org.