By Bria Brown

MICHIGAN (WNEM) — Businesses across Michigan have been hurting since the start of the COVID-19 pandemic.

But now many in the hospitality industry say they are in danger of foreclosure or they might not be in business in the following months after responding to a survey.

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The Michigan Restaurant & Lodging Association (MRLA) released new research tracking the economic impact of COVID-19 on the hospitality industry throughout the state.

The data uses surveys conducted in conjunction with the National Restaurant Association (NRA) and the American Hotel and Lodging Association (AHLA).

“The data is settled,” said Justin Winslow, President & CEO of the MRLA. “It is fundamentally clear that the pandemic is decimating the hospitality industry in this state to a degree never seen or even imagined. While it will take several years and a stable economy to reclaim the size, impact, and opportunities produced by this industry, we have not yet reached the bottom.”

“As the legislative calendar draws to a close, there are several thousand operators and a few hundred thousand employees in Michigan urgently hoping that the holiday spirit consumes our elected leaders in Washington D.C. and Lansing to pass a meaningful stimulus package for those most in need this holiday season,” Winslow added.

The significant survey results include:

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  • 5,600, or 33 percent, or Michigan restaurant operators say it is unlikely they will still be in business in six months
  • Two-thirds of hotels (approximately 850 in Michigan) report they will only be able to last six more months at current revenue and occupancy levels without any additional relief
  • 52 percent of hotel owners said they are in danger of foreclosure
  • 89 percent of Michigan restaurant operators expect their sales to decrease during the next three months and 63% expect their staffing levels to decrease over the same period
  • 48 percent of Michigan restaurant operators say they are considering temporarily closing their restaurant until the COVID-19 pandemic passes
  • 90 percent of Michigan operators say their profit margin is lower than it was prior to the COVID-19 outbreak
  • 63 percent of hotels have less than half of their typical staff working full time

The restaurant survey data was gathered from Nov. 16 to Nov. 30 with a total of 6,000 respondents nationally, including 175 from Michigan.

MRLA said the hotel industry survey data was collected nationally from Nov. 10 through Nov. 13 with more than 1,200 respondents, including many from Michigan.

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