<center>![](https://cdn.steemitimages.com/DQmaZvjrD2Fvk4xPtjYyoxvssRXWMEuREPgveoRinj8keAg/image.png)</center>

St. Louis Federal Reserve President James Bullard said Sunday on CNBC that he did not believe the U.S. economy or jobs market was in “free fall” as the coronavirus sweeps the country.  Fed Reserve President James Bullard is definitely delusional.

For the first time in 10 years, the number of jobs within the US declined when the jobs report was announced for March on Friday.  In the last two weeks, the number of people that filed for unemployment benefits approached 10 million.

Regarding the March numbers, the services sector led job losses with of 659,000 losing their job in March.  But within the service sector, leisure and hospitality lost 459,000 payrolls in March.

Lets specifically look at the hotel sector. One industry analyst estimated that RevPAR (revenue per available room) was down a stunning 80% last week. Hotel demand is estimated to fall 51.2% for 2020, while supply is expected to decline 14.9%. Lastly, occupancy rate is estimated to drop 42.6%.

So what do you do with all that supply, you find other means for the space.  Ayre Gran Hotel Colón is a four-star, hotel in downtown Madrid, now the city's largest hospitals.  And this is happening all over the world.  

In the US, in particular in New York City, US Army Corps of Engineers is looking to converting not only hotel rooms but also college dormitories into a supply of 10,000 hospital beds.  And the hotels aren't just being used as hospitals, they are being used to house the brave men and women on the front lines.  At the Four Seasons in Manhattan doctors and nurses can stay at the five star hotel for free.  This is the right thing to do at the time like this, at this point we are talking life and death, trying to make a profit is secondary. 

Park is the second largest publicly traded lodging REIT with a diverse portfolio of market-leading hotels and resorts with significant underlying real estate value. Park's portfolio currently consists of 60 premium-branded hotels and resorts with over 33,000 rooms primarily located in prime city center and resort locations.

<blockquote>

Park Hotels spun out of Hilton (NYSE: HLT) in early 2017, taking much of the larger hotelier's remaining owned real estate portfolio into a new REIT. Baltimore, Park Hotels' CEO, said in a statement that while the hospitality industry is facing a crisis, he believes his company's core portfolio to be strong.

“While equity markets have shown unprecedented volatility recently, Park remains the owner of iconic core assets like Hilton Hawaiian Village, the Hilton/Waldorf Bonnet Creek Resort, the JW Marriott San Francisco Union Square and the Hyatt Regency Boston. These assets – and many others like them owned by Park – hold strong market leadership positions and are managed by world-class hotel management companies," Baltimore said.

</blockquote>

<center><a href="https://www.bizjournals.com/washington/news/2020/03/16/park-hotels-cuts-costs-borrows-cash-to-contend.html?ana=yahoo&yptr=yahoo">Source</a></center>

I can honestly say I have never heard of Park Hotels, but the Smart Money has.  They bought over 2,000 Oct put options with a strike price at $2.50.

![](https://cdn.steemitimages.com/DQmXTsHz6uEVmeTso5WKtSfGM7tKAPxHVG7ZFyLFZpUDoAq/image.png)

The low in March was $4, but that may just be a pause before prices continue to decline.

![](https://cdn.steemitimages.com/DQmSgNGVj6rjWV2pbonXivSSg8BX8q7VijdfeB547KKas9V/image.png)


Huazhu Group Limited, together with its subsidiaries, develops leased and owned, manachised, and franchised hotels primarily in the People's Republic of China. It operates hotels under its own brands, such as Hi Inn, HanTing Hotel, Elan Hotel, Orange Hotel, HanTing Premium, Starway Hotel, JI Hotel, Orange Hotel Select, Manxin Hotel, Crystal Orange Hotel, Joya Hotel, and Blossom Hill Hotels & Resorts.

![](https://cdn.steemitimages.com/DQmagnGxkznko29vVyhVesviv4LHYqBRzC5o5UsoBGwm85f/image.png)

I'm not even going to pretend that I heard of Huazhu Group Limited before, but the Smart Money has.  Originally, I thought this was a spread trade, but after doing some additional research the Smart Money bought put options that expire in May at two different strike prices, the $25 and the $22.50 level. 

![](https://cdn.steemitimages.com/DQmcsGqjuB5AZTcvLv6XZAt3ByW3VKdibKZroYyKc7Afz7A/image.png)

If and when price breaks the support level at $25, there is no telling where price might head next. 

![](https://cdn.steemitimages.com/DQmc1mWrxZufZvNwjEunZDuErKGyaAb3z2gT3dQiPitBjNQ/image.png)

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.

<center>https://steemitimages.com/DQmRhDtjokAZnGKi4QwheqksKTFo6m4fsjMYsNNrsitC1xk/upvote%20banner3.gif</center>