HARTFORD, Conn. — Major layoffs are hitting Hartford’s hospitality industry. The question is will it have a ripple affect across the broader economy.

Despite the state of CT launching a 1-million dollar tourism advertising campaign, major Hartford hotels say they don’t have the guests to fill rooms and pay bills.

The layoffs come at time when the federal boost to unemployment is about to expire.

The Hartford Marriott and the Hilton Hartford grace the city skyline but their business is scraping the bottom.

The Waterford Hotel group operates them and announced temporary and permanent layoffs affecting more than 300 workers.

FOX61 obtained a letter from Nick Lorusso the General Manager of the Hartford Hilton.

He says, in part, that they — “may ultimately be forced to close the hotel due to unforeseeable business circumstances resulting from the COVID-19 pandemic.”

Lorusso goes on to say the phase two reopening hasn’t resulted in a meaningful increase in business and that the delay of phase three hurt them even more.

Commissioner David Lehman of the state Department of Economic Development said, “In phase two we’ve allowed hotels broadly to open up at 100% capacity so they have the ability to fully book their rooms unlike many other businesses but we understand certain hotels and especially those that rely on convention or business travel are at 5 or 10%.”

Hartford’s usually bustling downtown sidewalks are largely still devoid of foot traffic and the summer nightlife is absent with the continued closure of large entertainment venues like Dunkin Donuts Park, the Bushnell, the XL Center, and the Convention Center.

“Where the state has put in more than a million dollars over the last couple of decades to build that facility. But it cannot be successful. It can’t attract conventions without adequate hotel capacity,” explained Hartford Mayor Luke Bronin.

But as some in the hospitality industry struggle. Other businesses are coming back to life.

The popular Salute Restaurant on the corner of Bushnell Park just turned the lights back on Thursday and FOX61 was there to capture the first customers coming back.

“I think the economy downtown is going to take a big hit. Just because people are still coming back into work. We are still the insurance capitol of the world and by December maybe 30% of the workforce is expected back that’s a big hit and even of those 30% are most of them going to feel comfortable going out to have lunch? Probably not,” said Jimmy Cosgrove, the owner of Salute.

Mayor Bronin told FOX61 they are working with the hotels to get them relief from some federal loan obligations.

Commissioner Lehman says there is still over 100-million dollars left in the federal paycheck protection program but he also acknowledged more money is needed.