QUARTERLY REPORT // 2020 JANUARY • FEBRUARY • MARCH A LETTER FROM THE CEO
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We are living in extraordinary times. Never before has the hospitality industry faced such devastating financial impacts and had to endure the heart wrenching task of laying off so many of our valued employees. Our hearts go out to the businesses, employees, and families affected by our current COVID-19 situation. Our hotels are going through their most challenging period in history. Greater than 9/11, or any previous recession. Locally, we started to see the impact to our local hotel partners the second week of March, and this drop has continued weekly with the last week of March seeing overall citywide occupancy at 46%. We know April will be our toughest month, with many properties experiencing occupancy levels below 20%. While we are optimistic a recovery will begin in May, our group and leisure business will likely not return to a significant level until mid-to late summer. Hotels have experienced significant layoffs, and our thoughts are always with our hospitality family. In addition to overnight stays and valuable personnel, our community will witness an economic loss of over $2.5 million from group cancellations. (You can read more about these numbers in the sports/events section of this report.) I bring this up not to highlight what we have lost, but to remind us of the fact we are a strong force when we work together. Visit Stockton’s efforts and those of our partners have a clear impact on our local economy, and the quality of life of our residents. We know our efforts will be an integral part of the overall recovery of our community. Visit Stockton has always been, and continues to be, dedicated to supporting our community and our partners by doing what we do best – bring needed dollars to our community through our marketing and sales efforts. During this crisis, our team has met this moment in tremendous fashion by reaching out personally to our valued sports and meeting professionals, in addition to our industry partners, offering comfort and support. Each team member continues to work diligently to identify opportunities and execute new ideas quickly so we can make this time as positive and productive as possible. You will find a brief listing of our efforts related to COVID-19 on the following page of this report. I encourage you to read through the information and follow the links for details. While our daily routines and operating procedures may have changed, our team’s dedication to our friends and neighbors continues. We are grateful for a dedicated and committed Executive Committee and Board of Directors who have shown unwavering support for our team and their efforts. Thank you to our many partners who have checked on us, sent words of encouragement and praise at our efforts, and who continue to inspire us with their love and creativity in this time of turmoil. We are stronger together than we could ever be apart, and I am honored to contribute to the success of our wonderful city. We are showing everyone what it means to be #StocktonTrue.
IMPORTANT INFORMATION INSIDE:
Wes Rhea, CTA, CDME Chief Executive Officer
• Links to helpful local COVID-19 related resources
• Where to find the best take-out and delivery options
• Estimated economic impact of COVID-19 cancellations
• How to sign up for online digital marketing training
• What you can do to support local businesses
• Updated dates for Visit Stockton produced events
• How you can stay social while physically distancing