Gross operating profit per available room at U.S. hotels dropped nearly 102 percent in March, translating to an average 2 percent in losses, according to STR.

Coronavirus hotspots saw some of the worst drops in hotel profits. New York City had the steepest profit decline, with a 203 percent drop, followed by Chicago, at 201 percent, and Seattle, at 158 percent. Upper-upscale properties were the worst performing sector with a 108 percent decline in profits

The U.S. hotel industry expected a slowdown in 2020, as new supply delivered and the country entered a very late stage of its more than 10-year economic expansion. But coronavirus accelerated the predicted market correction to an unprecedented nosedive.

Hotel occupancy levels hit single digits. Demand dropped 41 percent in March and 14 percent for the entire first quarter, according to CBRE Hotels Research. The real estate firm predicts a 46 percent decline in revenue per available room, or RevPAR, for the year. The previous worst year on record was the 25 percent RevPAR decline seen in 1932.

With occupancy levels so low, it is almost impossible for hoteliers to generate enough revenue to cover operating expenses let alone debt service obligations. Many have decided to temporarily suspend operations until some level of travel demand returns. More than 5,000 U.S. hotels have closed as a result of depleted demand, according to CBRE. Mandelbaum still expects many of those to reopen.