On May 24, 2022 the Council of the District of Columbia passed legislation amending the COVID-19 Hotel Recovery Grant Program Act of 2021 (COVID-19 Hotel Recovery Grant Program Emergency Amendment of 2022) to enable more hotels to be eligible for still existing grant funds. The legislation reduced the percentage of revenue loss that a hotel had to have experienced in 2020 as compared to 2019 from 40% to 35%.
If your hotel business did not previously receive a grant through the COVID-19 Recovery Grant Program in recent months, and you meet the amended 35% financial distress threshold for revenue, RevPAR, or occupancy, you may be eligible to receive a maximum of $2,833 per room/key (capped at 300 rooms/keys) towards designated costs and expenses.
How Can I Apply?
Please note requirements have been updated
Step 1: Determine If Are You Eligible
The Hotel Recovery Grant Program will be open to businesses that meet the following criteria:
- Be physically located in the District of Columbia
- Have an active hotel, inn, motel, or bed and breakfast lodging business license
- Be in good standing with the District of Columbia’s Office of Tax and Revenue
- Have opened and begun operating during 2020 or 2021; or have remained open and operating during 2020 and 2021, except for any interruptions required by Mayor’s Orders 2020-045 and 2020-046 and subsequent public health emergency orders; and
- For a business that remained open and operating in 2019, have experienced in 2020, as compared to end-of-year 2019, at least a 35% reduction in: occupancy; revenue; or revenue per available room.
- For a business that was closed or partially closed in 2019, have experienced in 2020, as compared to end-of-year 2018, at least a 35% reduction in: occupancy; revenue; or revenue per available room.
- For a business that opened and began operating between January 1, 2020, and December 31, 2021, have incurred significant costs due to the COVID-19 pandemic, as determined by the Mayor.
- Provide all necessary documentation and execute a grant agreement.
- Agree to expend all grant funds by September 30, 2022 and submit monthly reports and documentation on how the grant funds were spent.
- Grantee must expend at least 80% of the grant award on payroll and fringe/benefits (including healthcare). If Grantee proves it cannot meet the 80% payroll/fringe requirement, DMPED may waive this requirement if the hotel commits to 1) participate in the Marion Barry Summer Youth Employment program (MBSYEP) for three consecutive years starting in summer of 2022, as long as it remains in operation, and 2) give the District the right of first refusal to study the property for conversion to residential use if the hotel business closes and the property becomes dormant. This study would require the business to provide information about debt on the property, ownership, and financing structure. Therefore, the residential use study requirement and the MBSYEP participation requirement only apply if Grantee cannot meet the 80% payroll/fringe requirement and a waiver is granted (limited exceptions may apply as noted below).*
Please note that a business is ineligible to receive grant funds if:
- Its headquarters or corporate office is in DC, but owns and manages hotels only outside of DC
- Hotel business that is permanently closed or planning to permanently close
- Hotel business under construction
- Hotel business with a revoked or expired business license
- Hotel business with less than 10 rooms
- Individual or business that rents a home/room on a rental platform such as Airbnb or VRBO
- Travel or tourism agency
Please note the grant funds may be used to pay for employee wages, benefits, and other related costs, such as recruitment, training, uniforms, and personal protective equipment. Please also note that priority will be given to eligible businesses that did not receive Paycheck Protection Program loans pursuant to the Coronavirus Aid, Relief, and Economic Security Act, approved March 27, 2020 (134 Stat. 281; 15 U.S.C. § 9001 et seq.), or section 501 of Division N of the Consolidated Appropriations Act, 2021, approved December 27, 2020 (134 Stat. 2069; 15 U.S.C. § 9058a).
*Please note that notwithstanding the updates noted above, grants of $300,000 or more may be subject to First Source employment requirements (see DC Code § 2-219.01 et seq.), which may include, in DMPED’s discretion, Grantee’s participation in the MBSYEP as an alternative to Grantee executing a standard First Source Agreement.
Step 2: Prepare Your Documents
Before you start your application, please prepare the following documents. If you have all your documents, the application can take up to 15-20 minutes.
- Copy of Hotel, Inn and Motel, or Bed and Breakfast Lodging Business License
- OTR Clean Hands Certificate as of August 31, 2021
- For a business that remained open and operating in 2019 and experienced at least a 35% reduction in occupancy, revenue, or RevPAR in 2020, please submit detailed monthly income statements and tax returns for 2019 and 2020
- For a business that was closed or partially closed in 2019 and experienced at least a 35% reduction in occupancy, revenue, or RevPAR in 2020, please submit detailed monthly income statements and tax returns for 2018 and 2020
- For a business that opened between January 1, 2020 and December 31, 2021 and incurred significant costs due to the COVID-19 pandemic, please submit a description of costs and receipt
Step 3: Apply On-line
Events DC is administering the Hotel Recovery Grant Program awards on behalf of the District. Please apply by June 15, 2022 through the following link.
Final approval and award are subject to the sole discretion of DMPED and Events DC, and contingent upon receipt of requested information. Information you provide is necessary to proceed and must be shared with Events DC and DMPED.
Next Steps After Applying
Eligible businesses that receive final approval from Events DC and DMPED will receive a Grant Agreement and ACH payment form to sign and return to Events DC. The grant period will be from the date of the executed grant agreement through September 30, 2022. Please note that the legal name on your W9, bank account, and entity signing the agreement must all be the same.
If you have any questions regarding the Hotel Recovery Grant Program, please send an email to email@example.com with as much detail as possible.