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AHLA said the hotels have spent years preparing and made “significant investments” based on government estimates.
A Research conducted by FIFA,, outsider Published last year, it was predicted that the World Cup in the US could create 185,000 jobs, adding $17.2 billion (£12.7 billion) to gross domestic product.
Hotels were planning for an influx of international travelers, who booked longer stays and spent more.
But the AHLA said fewer foreign fans “threatened a wider economic impact” with just three weeks until the opening game on June 11.
AHLA said the large-scale bookings made by FIFA in all cities “shape revenue forecasting, personnel planning and preparation”.
It said this booking policy “created artificial demand” and masked the fact that tourist flows were going to be lower than forecast.
Up to 70% of the rooms reserved by FIFA in Boston, Dallas, Los Angeles, Philadelphia and Seattle were canceled, AHLA said.
In a statement, FIFA rejected the AHLA’s claims and said it followed the agreement it had with the hotel chain.
“All room releases were carried out in accordance with the agreed timelines with hotel partners – a standard practice for an event of this scale,” a FIFA spokesperson said.
“In many cases, rooms were released ahead of schedule to further accommodate hotel requests.
“Throughout the planning process, FIFA’s accommodation team maintained consistent discussions with hotel stakeholders, including room block adjustments, agreeing rates, confirming room types and supported by regular reporting, townhalls and ongoing communication.”
Prices rose after the draw, as soon as fans knew which city their team would be in.
Since then there has been a gradual decline, reported by another 20% in recent weeks.
But it may be too late to lure fans.
Hotels in cities like Boston still cost more than $300 (£224) per night, and most fans are operating on a shoestring budget.
Chris Hancock, an England fan who has played in four World Cups, told BBC Sport that his team of five was traveling on an accommodation budget of $75 (£56) per person per night.
They’ll rent a car in each city and book a mix of hotels and Airbnb accommodations for 45 minutes to an hour.
“We always tend to be a little more out of town and keep costs down that way, so we’re not in the middle of Dallas, Boston or New York,” Hancock said.
“If you’re outside the city centers where everything is happening, you can get some cheaper deals
“We’re working within that budget. And we should be fine at that point.”
The AHLA told BBC Sport that it “expects possession to strengthen in June and July”.
“We know many fans are still waiting for tickets and schedules to be clarified before finalizing plans,” a spokesperson said.
“We believe bookings will pick up in the coming weeks. Hotels are ready to welcome guests and ensure they have the best experience possible.”
Airbnb said the World Cup is set to be the “biggest hosting event in Airbnb’s history,” surpassing the 2024 Olympic and Paralympic Games in Paris.
Hotels may have to rely on profits in the knockout rounds, while fans have to book at short notice.
But the World Cup doesn’t seem to be bringing in the revenue that was predicted.