Canadian Hotels Losing Money; Worry About Insurance Cancellation
August 12, 2020 ctn_admin
TorontoSun – Every hotel operating in an urban setting is losing money, the House of Commons industry comittee has heard.
The Hotel Association of Canada also said the industry is so hard-pressed that insurers have warned they will be denied coverage by yearās end, according to Blacklockās Reporter.
āThe insurance companies are now telling us effective December theyāre not going to cover us at all because weāre too much of a risk,ā said hotel associaiton CEO Susie Grynol. āYou canāt run a hotel without commercial insurance. It is a huge issue.ā
In the wake of travel restrictions caused by COVID-19, Grynol said summer resorts are operating at half capacity.
āAll of our urban hotels are really struggling; they are all operating at a loss right now,ā she added. āThe occupancy number for Canada today is 38%. You canāt run a business at 38% occupancy.ā
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