(980 CJME file photo)

By CJME News

Hotels still facing hardship: Hospitality Saskatchewan

Jan 22, 2021 | 12:20 PM

It continues to be a hard time for hotels, with vacant rooms and mounting bills to pay.

Hospitality Saskatchewan CEO Jim Bence said there is a misconception that large hotel chains have “deep pockets” to wait out the pandemic. Instead, he said 80 per cent of their properties are independent franchises.

“These are people in our neighbourhoods and their kids (are) going to our schools. (They’re people) who own these assets and they’re sitting virtually empty,” Bence told the Greg Morgan Morning Show on Friday.

Bence said hotels face high costs like property taxes, including one in Regina that pays an annual bill of more than $900,000.

“Really, their challenge is, how long can I possibly withstand these withering costs?” Bence said.

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The thought on the minds of hoteliers is how much longer will people choose to stay home, Bence said. The summer is when the industry revenues pick up. What happens when the supposed busy season is lost?

“That’s where conversations with the province and in particular with our mayor and council (come in). What it is that they can do to assist in helping chip away at those fixed costs? Those expenses are really what’s going to bury a lot of our owners,” Bence said.

Bence said if hotels closed, the effects would be far-reaching.

“Just imagine downtown Regina if we were to lose three or four of those big assets, if they went dark. Now all of a sudden, you have a downtown that’s tougher to attract customers,” he said.

“That piece makes a downtown vibrant and if it starts to move out, what’s it replaced with?”