The months of spring bring a rush of weddings to Buda, where guests enjoy the wildflower-studded open fields, rustic buildings and sunny weather. But when COVID-19 hit, it stopped the wedding industry in its tracks and hotels followed. Besides the essential employees coming to lodge in hotels, there are no other guests.
The Hampton Inn in Buda, once thriving in the months of March and April, is barely able to stay open at a maximum occupancy of 19 percent, maybe 22 percent. It once employed 20 people, but now it has been stripped down to a skeleton crew of eight.
The other 12 employees have been furloughed, and even the general manager at the Hampton’s sister location in Buda, the Comfort Inn, has been temporarily put out of work.
“I have a lot of worry about employees who were furloughed and they are still waiting for unemployment and haven’t gotten it,” said Pablo Palomino, the general manager at the Hampton Inn. “I’m seeing that those institutions are so overburdened and it’s creating a huge crisis.”
Since COVID-19 created a large decrease in hotel guests, the city of Buda stepped in to create some relief. These finances may grant some assistance, but ultimately, the money can only go so far when hotels are behind hundreds of thousands of dollars. The city has opened up $85,000 to aid the industry; $45,000 for Hotel Occupancy Tax Emergency Deferral in response to the coronavirus and $40,000 which has been allotted as part of a hotelier incentive program, existing before the virus.
On April 7, the city council agreed to defer the hotel occupancy tax payments, which were March 20 and again on April 20, forgiving 60 days of taxes for up to $5,000 per hotel. If the hotel’s taxes exceed $5,000, the hotel will be
responsible to pay the difference.
“We definitely feel like the city of Buda is doing what they can to help,” Palomino told the Hays Free Press. “Perhaps there will be inevitable closures but, as of now, we are looking strong.”
The hotelier incentive program usually helps hotels give group deals and money for advertisements. It is around wedding season that hotels use the incentive program, which helps the establishments and also boosts city tourism. But because there are no group travels, hotels may utilize the money for advertisements.
Whether the hotels are part of a big chain or not, they are all feeling the hit. Lysa Gonzalez, director of tourism for Buda, said that many franchised hotels are still owned and operated by individuals.
The Hampton Inn, often booked for business and leisure, has reduced its rates. A room that cost about $120 is now $88. Palomino said that they can no longer provide the amenities like before, such as breakfast, gym and pool, so they have to make some financial changes on the rooms. They are also offering $50 rooms for first responders.
When travel was severely reduced, the Hampton Inn also saw a drop-off in its clients. Usually, pilots and stewards stay at this location, which is about 15 minutes away from the airport and cheaper than closer alternatives. Cancellation of SXSW and weddings, both of which happen in the spring, devastated the hotel’s income. Palomino said that in March, they were behind last year’s income by $156,000 and so far in April they are behind $183,000.
The Comfort Inn has lost half of its business and is doing better because of its clientele base. Essential workers such as truck drivers, contractors, landscapers and more, tend to choose this hotel.
The tourism and travel industry has been heavily affected by the outbreak. Gonzalez quoted numbers from her industry, that nationwide, hotels and travel could lose 4 million jobs.
While some people encourage the purchase of gift cards for restaurants and clothing stores to provide some income during the crisis, Gonzalez said there isn’t much that can be done to help the hotels.
“Group travel has gone down to zero percent and we’re not seeing any leisure travel,” Gonzalez said. “We don’t know how long it’s going to last and not sure how long it will take to recover.”
Among all the darkness, Palomino sees a glimmer of hope. Because everyone shares these financial impacts, the hotel community is working together, he said. Some competitors have come together and some employees have even volunteered homemade masks.
Despite the heavy impact on travel and leisure, Gonzalez wants to remind everyone that safety is the most important factor.
“It’s still important that we stay home and stay safe,” she said. “When this is lifted, we’re still here and still beautiful.”
