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Other than the additional risk factors below related to COVID-19, there have been no material changes from the risk factors previously disclosed in response to “ Part I – Item 1A.
−Removed: Risk Factors ” of our Annual Report on Form 10-K for the year ended December 31, 2019.
−Removed: Risks Related to COVID-19
−Removed: The current outbreak of the novel coronavirus and the disease it causes (“COVID-19”) have significantly adversely impacted and disrupted, and is expected to continue to significantly adversely impact and disrupt, our business, financial performance and condition, operating results and cash flows.
+Added: Risk Factors ” of our Annual Report on Form 10-K for the year ended December 31, 2019 and “ Part II – Item 1A.
+Added: Risk Factors ” of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, which risk factors are incorporated by reference herein.
+Added: The current outbreak of the novel coronavirus and the COVID-19 disease it causes have significantly adversely impacted and disrupted, and is expected to continue to significantly adversely impact and disrupt, our business, financial performance and condition, operating results and cash flows.
Since first being reported in December 2019, COVID-19 has spread globally, including to every state in the United States.
On March 11, 2020, the World Health Organization declared COVID-19 a pandemic, and on March 13, 2020, the United States declared a national emergency with respect to COVID-19.
−Removed: The outbreak of COVID-19 has had, and another pandemic in the future could similarly have, significant repercussions across regional and global economies and financial markets.
−Removed: The global impact of the outbreak has been rapidly evolving and many countries, including the United States, have reacted by instituting a wide variety of control measures including states of emergency, mandatory quarantines, implementing "shelter in place" orders, border closures, and restricting travel and large gatherings.
+Added: The outbreak of COVID-19 has had and continues to have, and another pandemic in the future could similarly have, significant repercussions across regional and global economies and financial markets.
+Added: The global impact of the outbreak has been rapidly evolving and many countries, including the United States, reacted by instituting a wide variety of control measures including states of emergency, mandatory quarantines, implementing "shelter in place" orders, border closures, and restricting travel and large gatherings.
We have been and expect to continue to be negatively affected by additional governmental regulations and travel advisories to fight the pandemic, including recommendations by the U.S.
Department of State, the Center for Disease Control and Prevention and the World Health Organization.
−Removed: Many experts predict that the outbreak will trigger a period of material global economic slowdown or a global recession.
+Added: In addition, the COVID-19 pandemic has triggered a global recession.
COVID-19 has disrupted and has had a significant adverse effect on, and will continue to significantly adversely impact and disrupt, our business, financial performance and condition, operating results and cash flows.
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Global demand for lodging has been drastically reduced and occupancy levels have reached historic lows.
−Removed: Since late February, we have experienced a significant decline in occupancy and RevPAR associated with COVID-19 throughout our portfolio, and by March 31, 2020, we had temporarily suspended operations at 38 of our 60 properties.
−Removed: The remainder of our properties are currently operating at significantly reduced levels.
−Removed: However, we may need or elect to temporarily suspend the operations at additional hotels in the future as a result of the COVID-19 pandemic.
−Removed: Additionally, the vast majority of our group business through May of 2020 has now been canceled and we are seeing a significant reduction in new reservations through the end of the second quarter.
−Removed: It is not currently known when the suspended operations at our hotel properties will resume at any level, or if we will need to suspend operations at additional hotel properties.
+Added: Since late February, we have experienced a significant decline in occupancy and RevPAR associated with COVID-19 throughout our portfolio, and by March 31, 2020, we had temporarily suspended operations at 38 of our 60 properties ( 18 of which are still suspended as of August 6, 2020 ).
+Added: The remainder of our properties are currently operating at reduced levels.
+Added: We may need or elect to temporarily suspend the operations at additional hotels in the future as a result of the COVID-19 pandemic.
+Added: Additionally, the vast majority of our group business through the remainder of 2020 has now been canceled and we are seeing a significant reduction in new reservations.
+Added: Additionally, travel, especially business and leisure travel in the United States, where all of our hotels are located, has continued to be adversely affected as result of COVID-19.
+Added: It is not currently known when the suspended operations at our hotel properties will resume at any level, when our hotels operating at a reduced capacity will return to regular operations or if we will need to suspend operations or decrease capacity at additional hotel properties in the future, including as a result of government regulation, an increase in the number of COVID-19 cases or changes in business and other consumer preferences for travel.
Additional factors that would negatively impact our ability to successfully operate during or following COVID-19 or another pandemic, or that could otherwise significantly adversely impact and disrupt our business, financial performance and condition, operating results and cash flows, include:
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our inability to reopen our hotels in a timely manner, or our inability to attract customers to our hotels when we are able to reopen;
+Added: a change in government regulations;
our growth strategy could be negatively impacted by the COVID-19 pandemic, including limiting opportunities to acquire new properties, and we may be required to dispose of properties to meet liquidity needs;
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disruptions as a result of corporate employees working remotely, including risk of cybersecurity incidents and disruptions to internal control procedures;
−Removed: benefits of recent government action to provide financial support to affected industries, including the travel and hospitality industry, may not be available to us or our operators.
+Added: benefits of government action to provide financial support to affected industries, including the travel and hospitality industry, may not be available to us or our operators.
Moreover, many risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2019 should be interpreted as heightened risks as a result of the impact of the COVID-19 pandemic.
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In addition, the terms of future debt agreements could include more restrictive covenants or require incremental collateral, which may restrict our business operations or make such debt unavailable due to our covenant restrictions then in effect.
−Removed: There is no guarantee that debt financings will be available in the future to fund our obligations, or that they will be available on terms consistent with our expectations.
+Added: There is no guarantee that debt financings will be available in the future to fund our ob ligations, or that they will be available on terms consistent with our expectations.
While we have taken several steps to preserve capital and increase liquidity as described under “Liquidity and Capital Resources,” our short-term liquidity needs are still significant, including funds necessary to pay for operating expenses and other expenditures, including reimbursements to our hotel managers for payroll and related benefits, costs associated with the operation of our hotels, interest and scheduled principal payments on our outstanding indebtedness, capital expenditures for renovations and maintenance at our hotels (to the extent not deferred for 2020) and corporate general and administrative expenses.
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There can also be no guarantee that the demand for lodging, and consumer confidence in travel generally, will recover as quickly as other industries.
−Removed: All of the above factors could m aterially negatively impact our business, financial performance and condition, operating results and cash flows.
−Removed: The significant adverse effect that the COVID-19 pandemic has had on the hospitality industry is likely to cause impairment in our long-lived assets.
−Removed: The spread of COVID-19 and the recent developments surrounding the global pandemic are having an unprecedented adverse impact on the hospitality industry.
−Removed: As a result, during the three months ended March 31, 2020, we recognized $607 million of impairment losses for goodwill and $88 million of impairment losses related to certain of our assets resulting from a significant decline in market value of those assets.
−Removed: We can provide no assurance that a further material impairment loss of assets will not occur in a future period, and the risk of future material impairments has been significantly heightened as result of the effects of the COVID-19 pandemic on our business.
−Removed: Further impairment losses could have a material adverse effect on our financial condition and operating results and our ability to secure financing.
+Added: All of the above factors could materially negatively impact our business, financial performance and condition, operating results and cash flows.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.