Hotels hit by supply chain disruptions

American Hotel & Lodging Association survey shows almost 3/4 losing revenue

Published December 10, 2021 by Katherine Schulte

Supply chain disruptions are negatively affecting business revenue for nearly three in four hotels (74%), according to survey results released Wednesday from the American Hotel & Lodging Association (AHLA).

Supply chain disruptions were moderately or significantly impacting operations of 86% of respondents. More than half (52%) reported that the issue had worsened over the past three months.

“Hotels have a complex supply chain that requires regular procurement of a wide range of goods and services each day. And whether it’s production backups or shipping delays, supply chain disruptions are compounding hotels’ existing problems and increasing operating costs during an already tough time,” AHLA President and CEO Chip Rogers said in a statement.

Forty-six percent of respondents say they expect disruptions to last six months to a year, and 36% say they expect them to last more than a year.

Eighty-five percent of hotels surveyed said they were experiencing a lack of availability for linens and other soft goods. Seventy-six percent said they faced a shortage of food and beverage supplies, and 72% said the same with cleaning and housekeeping supplies.

Supply chain issues have left hotels across Virginia scrambling, Virginia Restaurant, Lodging and Travel Association President Eric Terry said. In order to accommodate guests, some have had to deviate from chains’ dictated linens and bathroom amenities in favor of what is available.

“It’s affecting food products as well,” Terry said. “Things that they’re anticipating getting in from a food and menu perspective they’re just not able to do.”

Of those surveyed, 77% reported experiencing increased costs for linens and soft goods, 77% for food and beverage supplies, and 79% for cleaning and housekeeping supplies.

AHLA conducted the survey of more than 500 members from Nov. 8 to Nov. 22.

Subscribe to Virginia Business. Get our daily e-newsletter.