US Hotels Lose $650M, Urge the Government to End Shutdown

As the US government shutdown stretched into its fourth week on October 22, 2025, more than 30 hotel and lodging associations across the country joined forces to demand action from Congress.

Led by the American Hotel & Lodging Association (AHLA), along with the Asian American Hotel Owners Association and the Latino Hotel Association, the coalition issued a letter to Congressional leaders urging them to end the shutdown and restore federal operations critical to travel and tourism.

For example, government agencies like the Transportation Security Administration (TSA) and Customs and Border Protection (CBP) operate with limited staff, leading to longer processing times and flight delays. Because of these complications and rising uncertainty, many travelers have canceled or postponed trips.

Without the usual volume of travelers, especially government workers and associated visitors, hotels experience a drop in occupancy rates, with AHLA estimating about $650 million in lost hotel business thus far.

“Economic uncertainty and waning consumer confidence are translating into booking cancellations and discouraging future planning, especially as we head into the heart of the holiday travel season,” said Rosanna Maietta, President and CEO of the American Hotel & Lodging Association.

The ripple effects extend beyond hotels. Data from the US Travel Association shows that the national travel economy has lost over $3.27 billion since the shutdown began on October 1, 2025.

Read our explainer on the government shutdown to learn why it started, who’s affected, and its impact on travel.

Photo by Clayton Cardinalli on Unsplash