$70 million in federal grants are being given to nearly 900 Wisconsin hotel operators to help offset their losses during the pandemic

Around $70 million of American Rescue Plan Act cash has been distributed to nearly 900 Wisconsin hotel operators to help offset some of their losses during the COVID-19 pandemic. 

The federal grants of up to $2 million each were announced Monday by Gov. Tony Evers — as the surge in delta variant cases prolongs the hotel industry's troubles.

“Members of Wisconsin's lodging industry are essential to tourism in our state, and they were hit very hard by the coronavirus pandemic," Evers said, in a statement.

Another $5 million in grants will be distributed to other hotel operators.

Despite the pandemic, Wisconsin’s tourism industry supported more than 157,000 jobs across the state and had a $17.3 billion impact on the state economy in 2020, according to the latest annual report commissioned by the state Department of Tourism.

But, even as more people are vacationing, business travel remains way down, said Greg Hanis, a hotel industry consultant.

"What we thought was going to be a slow but steady rebound in business travel this fall...is changing steadily as businesses are getting more reluctant to put people on the road, let alone bring them back to offices," said Hanis, who operates New Berlin-based Hospitality Marketers International Inc. 

"Also, there has been a steady move to cancel group events this fall," Hanis told the Journal Sentinel. 

Still, most hotel operators believe business and group travel will begin recovering slowly in early 2022, he said.

The hotel industry grants announced by Evers are part of $140 million in ARPA funds for Wisconsin's tourism and entertainment industries.

Those include $10 million for local tourism investment projects, $11.25 million for movie theaters, $12 million for live event small businesses, $2.8 million for minor league sports teams, $10 million for live venues, $15 million for destination marketing organizations, $8 million for summer camps, $1 million for the Wisconsin Historical Society to help reopen historic sites, and $7.5 million to increase marketing support for Wisconsin's tourism industry.

Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram, Twitter and Facebook.