Tokyo's Olympic Hotel Gains Forecasted to Lessen in 2021

The Summer Olympics’ performance gains for Tokyo hotels are projected to be lower after the one-year delay in the event, according to the latest forecast from STR and Tourism Economics.

“We are projecting less overall demand when compared with our initial forecast for 2020, and while double-digit RevPAR growth is expected, it will come from a much lower base,” 

“Lower absolute demand levels would be linked with traveler perception based on the timeline of the COVID-19 pandemic, as well as financial challenges of a potential global recession. The still high level of demand combined with ADR growth should drive RevPAR upward, similar to the growth percentage we saw during last year’s Rugby World Cup in the market.”

Mandarin Oriental Hotel Group extraordinary effort

An extraordinary gesture for extraordinary heroes. Our team at Mandarin Oriental, Marrakech has been busily sewing masks to distribute to local hospital workers. Thank you to our community heroes; thank you to our MO heroes.

Tejinder Singh moves to Kolkata as the Area Manager, East & Cluster General Manager of ITC Hotels East

Hotelier  Tejinder  Singh,  who moves to Kolkata as the Area Manager, East & Cluster General Manager will now head ITC Hotels East. In this capacity, he would  oversee  both  the Kolkata properties, namely ITC Sonar and ITC Royal Bengal.   Additionally  as  the  new  upcoming  WelcomHotel  properties  at Bhubaneshwar,  Kathmandu  and Port Blair become operative, the same will be under his leadership

Mr. Tejinder Singh,  popularly  known  as 'Teji' began his journey more than two decades back  at ITC Maurya in 1994 as a management trainee. Since then he has held senior  management  positions  at  several  ITC Hotels in Delhi, Jaipur and Hyderabad.

He has also garnered management expertise through international exposure in the  aviation industry as the General Manager Customer Services & in-flight Dining for Europe, UK & North America based in Brussels and subsequently as the General Manager Service Delivery & Guest Experience for the brand.

An  integral  part  of  the  pre-opening team as the General Manager of ITC Kohenur,  Teji,  was  one of the leaders for positioning and launch of this 274  luxury  destination  located  in the heart of Hyderabad’s new business district  (HITEC  City)

He  has been a core member of the pre-opening team of ITC Hotels and has played an integral role in the launch of several hotels, namely ITC Grand Chola in Chennai, WelcomHotel Jodhpur, WelcomHotel Bella  Vista, Chandigarh, ITC Grand Bharat, Gurugram as well as WelcomHotel Dwarka, New Delhi

 He  has  also  served  as  the Resident Manager of ITC’s flagship Hotel ITC Maurya, New Delhi in 2014 and the General Manager of ITC Rajputana in 2015.

Hilton closes 1,000 hotels, experiences 56% decline in revenue per room resulting from coronavirus

Hilton Hotels' preliminary systemwide first-quarter estimate of revenue per available room showed a 56% to 58% decline for March, according to the company's filing with the U.S. Securities and Exchange Commission

For the company's hotels in Europe, the Middle East and Africa, revenue per room is down 62% to 64% for March, which is slightly worse than Hilton properties in North and South America, which are down 54% to 56%.

These numbers are all better than the hotel's revenue per room in the Asia/Pacific region, which declined 74% to 76% in March.

As of April 14, 1,000 Hilton Hotels have suspended operations, which accounts for 16% of the chain's total global properties.

Marriott hotels also expect to report a decline of at least 23% in revenue per room for the first quarter. 

About 25% of Marriott's 7,300 hotels around the world are temporarily closed as a result of coronavirus travel fallout, according to a business update from the company

Hotel occupancy, average daily rate and revenue per available room were down significantly year-over-year for the week of April 5-11, according to a report from STR, a firm that analyzes hospitality industry data. 

More than 15,000 hotels signed up for a new American Hotel and Lodging Association (AHLA) initiative called "Hospitality for Hope," which matches hotels with government agencies in need, offering temporary housing for emergency and health care workers amid the pandemic.

Hotels may be in a position to offer rooms near a hospital they have a relationship with. When relatives of sick patients come to an area, hotels reach out to hospital leadership to offer a discounted rate.

Georgia to Reopen Restaurant Dining Rooms on April 27

In a move to kickstart his state’s economy, Georgia Gov. Brian Kemp announced that nonessential businesses can reopen and restaurants can serve dine-in customers once again .

 Theaters, private social clubs and restaurant dine-in services will return albeit with “specific social distancing and sanitation mandates.” Bars, nightclubs, amusement parks, and performance venues will remain closed. More information about guidelines will be released .

 Places of worship will be allowed to hold in-person services and essential elective surgeries will be allowed. 

“By taking this measured action, we will get Georgians back to work safely without undermining the progress that we have all made in the battle against COVID-19,” 

Kemp said the state is “on track to meeting phase one,” which calls for venues like restaurants and movie theaters to operate under “strict physical distancing protocols.”

“By expanding our hospital bed capacity—including the temporary facility at the Georgia World Congress Center—we have the ability to treat patients without crisis care in hospital settings. Our proactive actions have reduced stress and strain on area hospitals as well as the communities and families that they serve.”

Georgia’s shelter in place order remains in effect through the end of April. Although he is reopening businesses prior to April 30, Kemp asked citizens to limit travel and wear face masks when in public. The governor said the elderly and those with underlying conditions should be prepared to shelter in place until at least May 13

Marriott plans to spray disinfectant in guest rooms, sanitize keys to stop COVID-19

From spraying guest rooms with disinfectant to sanitizing room keys, hotel giant Marriott International became one of the first major hotel groups to outline how it plans to reassure guests of cleanliness in the age of the coronavirus

Guests may notice some of the changes from the moment they step into a Marriott property: Furniture in public areas will be rearranged to promote social distancing.

Marriott's promise of a new level of cleanliness may be an early sign of changes that will sweep the hotel industry as chains and individual properties compete to lure guests by offering the most coronavirus-resistant environment. The strategy could be critical to trying to create a rebound for hotels as stay-at-home orders are lifted and travel resumes.

In perhaps the biggest change, Marriott said it will use electrostatic sprayers with hospital-grade disinfectants to sanitize throughout the hotel. Besides guest rooms, the sprayers will be used in lobbies, gyms and other public areas. It said the cleaning agents used would be those recommended by the Centers for Disease Control and Prevention and the World Health Organization to kill all known pathogens.

The company is testing ultraviolet light technology for sanitizing room keys, and adding hand sanitizer stations and signs in the lobby to remind anyone who enters to keep their distance from others. Marriott is also taking a look at what to do at properties that offer buffet service.

Accor to launch cleaning standards certification 'label' post-coronavirus lockdown

Accor has partnered with testing, inspection and certification provider Bureau Veritas to develop a ‘label’ certifying that appropriate safety standards and cleaning protocols have been achieved.

The label will cover both accommodation and catering, and will set the sanitary standards applicable to all of the group’s hotels, “as well as to other chains and independent hotels”.

Accor said that the project had been carried out in partnership with doctors and epidemiologists, and had been developed in collaboration with Accor owners and trade associations.

Concrete proposals will be submitted initially to the French government and subsequently to relevant European governments, ministries and committees, and the result of the project will be “an operational guide made available to all stakeholders in the hospitality industry, enabling them to rigorously apply the health and safety recommendation of authorities (WHO, Health Ministry etc), both in guest services spaces and in back office and catering spaces”.

“Welcoming, protecting and taking care of others is the very DNA of Accor and at the heart of what we do. Today, more than ever, our employees, customers and partners need to be reassured of our ability to offering them the best welcome possible.

“As the European leader in hospitality, it is our duty to anticipate needs and respond to health and safety requirements by adhering to the highest standards. We are pleased to be pioneering this drive with Bureau Veritas and to extend it to all stakeholders.”

HVS Report - Impact of COVID-19 on Los Angeles & Southern California Hotel Markets - By Luigi Major

Since December 2019, outbreaks of coronavirus (COVID-19) have led to global economic disruptions as cities and countries attempt to slow the spread of the disease by implementing lockdowns and social distancing measures. At the time of publishing this article, the number of cases in the United States and California exceeded 680,000 and 28,000, respectively.

Beginning in early March, prominent events in Southern California, similar to many regions around the world, were canceled or postponed. Major attractions such as Disneyland, Universal Studios, Knotts Berry Farm, Six Flags Magic Mountain, the Santa Monica Pier, Big Bear Resort, and Mammoth Mountain also quickly closed in response to the pandemic. On March 19, 2020, California became the first state in the country to issue a statewide “Stay at Home” order and, since that time, economic activity has ground to a halt; the order remains in place until at least May 15

As can be imagined, the hospitality industry in the region, as with the rest of the country, is now reeling from the unprecedented drop in demand caused by these measures, which have resulted in substantially lower occupancies and average rates. For the combined L.A., Anaheim/Santa Ana, and San Diego lodging markets, RevPAR grew 3.2% in 2018, and then increased by only 0.3% in 2019; this weak performance was due primarily to the supply increase in 2019. Demand growth resumed in early 2020; up until the end of February 2020, hospitality markets in Southern California were on track to once again break records, reporting slightly higher RevPAR levels than those achieved during the same period of 2019.

However, in the span of four weeks in March, the industry took a nosedive as travel came to a halt. As of mid-April, absolute occupancies in most markets were reported in the 15% to 25% range, with ADR levels dropping on average 40% to 45%. Ultimately, this resulted in a RevPAR decrease of 80% to 90% for most markets in the region (to an absolute level of approximately $20). The following chart illustrates weekly RevPAR performance thus far in 2020 compared to 2019 (on a running 28-day basis) for the aforementioned Southern California markets combined.

HVS Hotel Transaction Activity: The Factors Influencing a Return to Normalcy in a Post-COVID-19 Time - By Drew Noecker

The year-over-year individual property transaction volume in Q1 2020 was down 61.4% from the same period in 2019, as COVID-19 became a major concern in the second half of the quarter; thus, this portends a large drop in Q2 2020 with a full impact of COVID-19 disruption. With our industry’s already-realized transaction volume drop and the continuation of this trend, we wanted to look at a few conditions that we believe will need to be present for a return to a robust hotel transaction market. Selected Important Factors for a Consistent, Stable Market After COVID-19 Cases Wane

• Availability of Traditional, Stabilized Financing
  There are multiple transitional, or bridge, lenders with which HVS is currently working. However, to return to a healthy market, the CMBS market, SBA lenders, and traditional balance-sheet lenders need to return to lending. 

• Understanding of the Volatile Environment by the Lending Community
  HVS is working with many companies who have “paused” hotel lending until a clearer RevPAR trajectory emerges. When lenders feel comfortable with a specific uptrend, the traditional debt market will reopen.

• Return of Broader Commercial Real Estate Investors to the Hotel Market
  One of the significant drivers of the growth in hotel transactions over the last 8+ years was the entry of traditional real estate private equity firms into the hotel ownership space. Those firms are currently concerned about the occupancy volatility of hotels during this health issue, but once the broader real estate private equity firms are again comfortable, the transaction market will improve.

• Solidification of the Concessions Available from Franchisors 
  Major franchise companies such as Marriott, Hilton, Hyatt, Choice, and IHG have discussed possible concessions for their franchisees. Once these concessions regarding fees and renovations are understood, owners can safely bid on available assets and return the market to a healthier state.

April 14, 2020 – Updated Transaction Data

Coronavirus lockdown: Hilton partners with Zomato, Swiggy for food deliveries

Hilton, a leading global hospitality company, has partnered with top food aggregators Zomato and Swiggy for home delivery of its signature dishes to customers, following a safe and contactless delivery practice. Currently, six Hilton properties are operational for food delivery via Zomato and Swiggy including Conrad Bangalore, Conrad Pune, Hilton Garden Inn Gurgaon, Hilton Chennai, DoubleTree Ahmedabad, and Hilton Mumbai.

Hotel's select delivery menu across cities features the top 20 signature dishes from the most popular F&B outlets of Hilton Hotels in those cities, at special delivery prices. Hilton claims to have always followed stringent hygiene protocols, and due to the outbreak of COVID-19, is taking all necessary precautions to ensure utmost safety in the delivery of food to its customers

Hilton will also be offering a curated delivery service for private parties and gatherings. Deliveries under this service will be done by Hilton's staff using company-owned vehicles

How Each Hotel Department Can Start Preparing for A “New Normal” Re-opening

By the way, this list is based on the scientific process of baseless, wild speculation, while waiting out the quarantine.

F&B and Restaurant

• Re-draw your floor plan so that there is a minimum of 6 feet between tables.

• Research which food costs will increase when you order less volume.

• Move kitchen stations (if at all possible) to create more space.

• Create a re-opening menu with items that limit the number of cooks in the kitchen

Front Office/Reservations

·         In expectation of occupancy restrictions, add “Covid19 Out-of-Order” designation in your PMS system. These rooms will be tracked differently than regular OOO rooms.

·         Decide which rooms you will take out-of-order to ensure social distancing and limit elevator use.

·         You may have to read the temperature of all guests when they check-in so decide on whether that will happen at the front door or front desk. You may want to start writing an SOP for this.

·         Start talking to your GM about the possibility of requiring a Covid19 affidavit to be signed at the front desk where guests confirm that they have not been close to anyone with virus symptoms.

·         Start crafting a Covid disclosure for Phone Reservations to read to each guest and to post on the website (with an electronic “Agree” button).

·         If your credit card scanner does not accept contactless cards, get one that does.

Finance/Revenue Management

·         Add a new line for “Covid19 Out-of-Order” rooms to your Pace, Forecast, and Yield reports. This will allow you to better compare Year-over-Year results this year and next year. If you bundle all the OOOs together you will affect the variances.

·         If there are occupancy limitations, you may be sold-out or close-to-sold-out every night, so you have to find alternative metrics to track the strength of the market. Try putting together data from your POS or CRM to track KPIs like average guest spend for all outlets year-over-year

Marketing/Sales

• Compile “Best Guests” list from your CRM to send personalized messages. A simple email blast will be lost in everyone else’s email blast.

• Redraw your meeting space floor plans for social distancing requirements. Load the new floor plans to your website.

• Divide your Sales contact list by group size. Large groups may not be able to commit to events for a while because of logistics, but small groups are very manageable.

Hotels and restaurants will open in 10 districts of Kerala

Hotels and restaurants will open in 10 districts of Kerala on Monday after nearly a month of lockdown as the coastal state prepared to get its economy back on track after successfully controlling the spread of Covid-19.

Out of Kerala’s 14 districts, four -- north Kerala’s Kasaragod, Kannur, Kozhikode and Malappuram -- are in the red zone with the bulk of infections. Eight, including state capital Thiruvananthapuram, are in the orange zone with few cases and two are in the green zone with no cases. The relaxations will be applicable to the orange and green zones only, said state authorities.

From Monday, restaurants and hotels in these two zones will remain open until 7pm and some private vehicles allowed on the streets but no overcrowding will be permitted.

Booking.com plans for lay offs after landing $4bn loan

Online travel agent Booking.com has told employees in an internal memo that layoffs from the company are "probable", just days after the Financial Times reported it had received a $4 billion loan in bonds from investors to fend off severe effects caused by the coronavirus crisis.

In a video conference held with hundreds of employees, Booking.com chief executive Glenn Fogel is believed to have said cost-cutting would likely be necessary across different parts of the company, according to the Financial Times' report.

One of Booking.com's key competitors, Expedia Group, has already been forced to make 3000 employees redundant  since the turn of the year as reality bites.

Booking.com is committing to slash marketing expenditure, executive salaries and hirings for the foreseeable future, as a major cost-cutting exercise and bookings continue to drop to 85 per cent year-on-year in April compared to the same period in 2019.

Importance of E-Learning in this current situation by Rahul Chowdhury, Assistant Professor, Hospitality & Tourism Administration at Sister Nivedita University

We are now entering a new era — the revolution of online education.

It is often referred to as e-learning. Online learning is seen as an innovative concept which is attracting the attention of academic institutions as well as companies in different sectors.

There is also increased use of virtual classrooms (online presentations delivered live) as an online learning platform and classroom for a diverse set of education providers. Being physically present in a classroom isn’t the only learning option anymore.

Everyone can access online education no matter whatever is the location. Although it is one type of distance learning I believe as the current situation is extremely threatening & challenging for all of us, so it’s better to have something than nothing. Education & learning is an unstoppable concept, no matter whatever is the situation. Currently, I am working as an Assistant Professor in the Department of Hospitality & Tourism Administration at Sister Nivedita University (Techno India Group-West Bengal, Kolkata).

The online sessions are happening on a regular basis with participation from students & faculty members are 100 per cent. My area of specialization is Food & Beverage Operations & Management. I believe that virtual learning is an excellent platform to share knowledge even when you are working from home. Although, in this present situation when the entire world is undergoing such a severe crisis, but I believe, that it can’t stop education & learning.

So under the guidance & full support from my director Mr Sandip Mukherjee & Head Dr. Santanu Dasgupta (both from the hospitality department), I am sharing my experiences, knowledge & skills with my students via online mode. Recently I have attended a few webinar sessions where the majority of academic leaders from all over the world believes that online learning quality is already equal to or superior to face-to-face instruction.

I believe that the process of learning & teaching has improved with the use of technology. In this moment flexibility, & adaptable to change with the situation must be the prime key. As an educator, we all must spread knowledge, as education is the passport to the future. I call it a “Commitment to student education”.

OYO Accused Of Listing Treebo Hotels Without Clearances

Gurugram-based hospitality unicorn OYO has found itself in a fresh battle against its competitor, Treebo. The company’s executive allegedly submitted “invalid” no-objection certificates from about 70 hotels to the OTA Booking.com .This was reportedly done to change the ownership listing of the properties to OYO from rival Treebo.

To begin with, when hospitality chains like OYO and Treebo list a hotel, they receive permissions from these hotels to promote the hotels on their websites as well as other OTAs like MakeMyTrip, Yatra, Booking.com etc.

The OTA said that after making necessary checks it had identified that the NOCs provided by OYO for these properties were “invalid”.

Booking.com reportedly said that it required accommodation partners to abide by all applicable laws and compliances. “There is a standard process that we follow at Booking.com for listing properties and the same process is being followed right now as well,” the company said.

OYO did not respond to Inc42’s queries on the matter till the time of publication.

The development comes at a time when the travel and hospitality industry has been severely hit by the Covid-19 pandemic and quarantines. OYO had recently told its employees that since the outbreak, OYO’s occupancy rate and revenues have dropped by more than 50 to 60% and the company’s balance sheet has come under severe stress.

The Fern Hotels & Resorts supports the needy amid coronavirus crisis; announces no paycuts for employees

Be it providing food to the needy during these times of national crisis or ensuring there will be no pay cuts across its 72 hotels, The Fern Hotels & Resorts, India's leading environmentally sensitive hotel chain is trying to spread the message of being sensitive.

The CEO of the company, Suhail Kannampilly said,” We as a company are doing our bit to contribute during this time of crisis. Quite a few hotels are offering food to the needy in Mumbai and other parts of the country.”

He assured his employees that the company will not be reducing any salaries. “The Labour ministry's advice on not reducing any salaries is clear and we as a company want to show our commitment in resolving this crisis.

At this point we are compelled to take some actions. So rather than salary cuts or unpaid leave we will work towards a salary deferment, where by each hotel pays based on their available cash flow, a base amount for substance and then when the situation reverts to normal the balance is paid out in tranches “, he said.

The CEO also exhorted his team members not to lose touch with the guest and used this opportunity to re-analyse the business.  Run through P&L / trial balance with a fine-tooth comb and evaluate as to how we can make this a healthier and more profitable business once the situation normalizes

Here’s how Royal Orchid & Regenta Hotels are doing their bit to alleviate community distress amid COVID19 crisis

Royal Orchid & Regenta Hotels, through their 60+ hotels across India, have undertaken a noble initiative to provide food and comfort to the needy amidst the lockdown.  The group has been distributing food packets to the migrants and underprivileged through their hotels in Bangalore, Gujarat, Madhya Pradesh, Navi Mumbai, Goa, Mysore, and Rajasthan.

As a part of the initiative, the Regenta Resort in Pushkar (Rajasthan) has adopted a village named Bhagwanpura which is home to 300 people. The resort is regularly supplying meals and groceries to the locals.  Likewise, in Gujarat, the hotel has distributed food packets to 200 people in Bharuch, 600 in Rajkot and 900 people in Vadodara respectively. 

Besides, food packets were provided to more than 2500 migrant workers during last week’s mass migration through their hotels located in Jaipur and Madhya Pradesh’s Pench National Park. In Bangalore, the hotel has continued with its ongoing initiatives through its flagship property - Hotel Royal Orchid and Regenta Place.

Billionaire Royal Caribbean Co-Founder Dies

Norwegian billionaire businessman Arne Wilhelmsen, the co-founder of Royal Caribbean Cruises, died Saturday, April 11, 2020, in Palma, Spain.

Wilhelmsen was a constant influence on the company from its founding, serving more than three decades on the company's board of directors. Together with the company's first CEO, the late Edwin Stephan, Wilhelmsen saw possibilities for the nascent cruise industry that others did not.

"At a time when the rest of the world thought cruising was a niche use for old transatlantic liners, Arne was already seeing glimmers of the growth that was possible," said Richard Fain, RCL's chairman and CEO. "He had a vision of the modern cruise industry when the 'industry' might have been a dozen used ships, total."

Wilhelmsen saw the potential for cruising to become the fastest growing segment in a growing vacation industry.  A believer in economies of scale, he once recalled, "My initial challenge was to convince my partners and management in Miami to build bigger and more efficient ships in order to grow the company."  True to his vision, the company now sails 61 ships calling on all seven continents and its fleet features the largest cruise ships in the world.

Youth walks over 1600 km to reach Kashi from Mumbai

Ashok Keshari works at a hotel in Nagpada area of Mumbai. With his hotel shut in view of lockdown due to coronavirus pandemic, he decided to head towards his home in Varanasi on March 30.He walked over 1600 km for almost 14 days to reach Varanasi from Mumbai on Sunday night.

“I walked along the rail tracks on roads and remained hungry for most of the time. On way, some generous people gave food that helped me survive,” said Ashok, who reached Cantt station, Varanasi

He then walked to district hospital where doctors cleared him of coronavirus symptoms and he said the doctors advised him to stay in home quarantine for 14 days as a precaution.

A resident of Saptsagar Dawa Mandi area in Varanasi, he was, however, allowed entry into his house after he underwent screening at the government hospital and was found asymptomatic for coronavirus.

Upcoming Live Webinars - Restaurant Industry in NYC and Travel Industry’s Road to Recovery

What's Next for NYC Restaurants

 COVID-19 and social distancing have completely changed the way restaurants and bars can do business. Because foodservice is considered an essential service, operators can choose to remain open if they limit their sales to takeout and delivery only.

While this “new normal” will work for some operators, others will be forced to shut down. Neither choice is ideal in this new, ever-changing, and volatile business environment, and owners, operators, and their suppliers are being forced to make difficult decisions every day to protect their businesses, assets, employees, and guests.

The Travel Industry’s Road to Recovery

 COVID-19 presents a challenge of historic proportions for the travel industry. The measures put in place to stop the spread of the pandemic – border closures, stay-at-home orders, and quarantines – have brought travel to a standstill, and no one can say when these policies will be eased or if additional measures will be implemented.

This panel of travel industry experts will discuss the current market dynamics and different recovery scenarios.