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.

Maestro PMS Recognizes Hoteliers That Stand Up to CV-19. Community Donations Cover Over 1000 Room Nights for Health Care Heroes

These are unprecedented times for our industry. Operators are facing business challenges beyond their control. Nevertheless, many operators and hotel companies are putting the true meaning of ‘hospitality’ into action. Hundreds of operators with dozens of brands are making their properties and facilities available for use by medical personnel and first responders. 

Maestro’s team is proud to be associated with many of these hoteliers who are giving back to their communities by opening their doors during this difficult time.

The Silver Hotel Group, a family owned company, is offering a safe and comfortable place to rest for front line medical staff and first responders

Accent Inns opened its doors to offer rooms at cost for front-line essential service workers, “We considered closing our doors because our reservations office was only taking cancellations and clearly travel was drying up,” said Trina Notman, VP of Marketing & Communications at Accent Inns

“Then, a nurse who was desperate for a place for her colleagues to self-isolate called us for help because some of her colleagues had taken to sleeping in their cars to avoid risking passing the virus on to their families

To date we have sold over 1,000 room nights covered by community donations through this program. It is tremendous to be able to tell these workers that their stay is covered.”

AHLA's Hospitality for Hope Initiative that was created to boost collaboration between the hotel industry and local, state and federal governments to help employees, communities, and the industry during this unprecedented health crisis. AHLA recently announced a partnership with its partner state associations to support communities across the country by connecting hotels with the health community to find housing and support for medical staff and first responders. Over 16,000 hotels have signed up for AHLA's Hospitality for Hope Initiative.

MMGY Global COVID-19 Travel Insight Report - April 13th

Based on data from Wave III of our DMO Industry Barometer conducted with the Destinations International Foundation, it appears organizations could be turning from reactive crisis communications to proactive planning for a travel rebound. What will be key in developing road maps to recovery will be a balance between short-term tactics and long-term strategy.

1. There is plenty of data to suggest that immediate bookings will be driven by more local travel and drive market trips.

2. However, long-term strategies should not be forgotten - especially for long-haul markets where booking windows have the potential to lengthen based on safety sentiment.

3. It will be important to sift between short-term trends and macro shifts in consumer behavior that will define the "next normal.

Tips for Executing a Successful Takeout Program

With the industry rapidly shifting, operators across all segments are innovating new ways to serve customers by expanding their delivery and takeout services. Restaurants are aligning with state-issued orders by increasing takeaway offerings, including family style meals and curbside pick-up options. Many are even providing free, no contact delivery or offering senior-only hours to ensure the safety of their customers.

The increased delivery and takeout demand has presented new challenges for operators who want to keep food quality high and wait times low. With a full system in place, operators can maximize profits, while also ensuring the highest food quality for their customers.

Cook Food the Way It’s Intended

Vector® Multi-Cook Ovens feature up to four ovens in one with independent temperature, fan speed and cook time controls. Without flavor transfer between chambers, this allows operators to meet customer demands with an unmatched volume and variety of food at the highest quality. Exclusive Structured Air Technology® delivers optimized, focused heat that results in faster, more even and consistent cooking—two times faster than conventional technology.

Maintain Food Temperatures with Radiant Heat

Heated holding cabinets with Halo Heat® technology distribute heat evenly and hold food to a consistent temperature without degrading food quality. With gentle, radiant heat that surrounds the food, these cabinets will ensure that it is hot and ready for pick up no matter when the customer arrives.

Holding cabinets are energy efficient and easy to install with no water required—saving money, time and energy, while satisfying customers and reducing food waste

Six Taj hotel staff test positive

At least six staff members of the Taj group of hotels in Mumbai have been hospitalised after testing positive for COVID-19. The Taj Mahal Palace, The President, Taj Lands End, Taj Santacruz and Ginger Andheri have offered their premises to the medical fraternity and health workers.

The Taj staff were admitted to Bombay Hospital and are reported to be stable. Dr. Gautam Bhansali, consultant physician at the hospital, said they had very mild symptoms.

Approximately 500 of our employees who are at work in our Mumbai hotels have been tested. Those who have tested positive mostly were asymptomatic, showing absolutely no signs of illness. However, staff testing positive and symptomatic were duly hospitalized and others who were in contact with them have immediately been put in quarantine in accordance with World Health Organization (WHO) norms and guidelines issued by the local Government authorities

South Mumbai’s Taj Mahal Palace does not have any guests and is working with minimum staff in areas like housekeeping, security, maintenance and staff dining to ensure the upkeep and maintenance of the hotel.

IHCL has been supporting the Government with various humanitarian initiatives by offering its hotels to the medical fraternity, health workers, supporting certain States with quarantine facilities and also providing almost 4 lakh meals till date to doctors, health workers and migrant workers

Exclusive: MakeMyTrip Gets INR 73.5 Cr From Mauritius Entity As Virus Pinches OTAs

In the wake of the ongoing slowdown in the aviation and tourism industry, Gurugram-headquartered online travel company MakeMyTrip has raised INR 73.5 Cr in two tranches from Mauritius-based entity — MakeMyTrip Limited.

According to the ministry of corporate affairs (MCA) filings accessed by Inc42, MMT has raised INR 37 Cr on March 16 while the parent company infused INR 36.5 Cr on March 9

MakeMyTrip issued 21,81,461 shares to the company at INR 340 per share with a nominal price of INR 10.

MakeMyTrip had reported an adjusted operating loss of $11.2 Mn in Q3 2020, down from $19.3 Mn in the previous quarter in the same fiscal. Meanwhile, the company’s revenue increased to $146.9 Mn, from $118 Mn in the previous quarter.

For MakeMyTrip, the impact is quite visible from the downfall of the share prices. From $29.95 on February 12, MakeMyTrip‘s share price declined to $10.8 on March 18. The situation is quite similar for MakeMyTrip competitor Yatra as well. Yatra’s share price fell from $3.79 on February 14 to $0.91 on March 18.

MakeMyTrip’s Revival Plan

To start with, MakeMyTrip’s Kalra and CEO Rajesh Magow shared a revival plan with the company’s employees. Some of the measures include reducing variable costs such as advertising, sales promotions and payment gateway costs, along with optimising IT infrastructure and expenses relating to the functioning of our offices and other establishments.

Travel Agency Flight Centre to Shutter 800 Storefronts as Part of $1.2 Billion Savings Effort

Flight Centre Travel Group plans to close 800 retail stores, among other measures, in a bid to slash costs over the coming months. Some 40 percent of those closures involve agencies based in Australia.

The latest crisis plan follows a staff reduction of 6,000, including redundancies, out of its workforce of 20,000.

Among other measures taken, it has put a hold on all “non-essential capital expenditure”, which it said will lead to monthly operating savings of $40 million per month.

It could sell its Melbourne head office, valued at $37 million.

The group has also frozen sales and marketing activities, with the latter saving it nearly $11 million per month.

All of these operational cutbacks will incur a one-off cost of $127 million.

Liquidity boost

Flight Centre will also lean heavily on its banks, seeking $120 million of new commitments negotiations.

The update to the Australian Securities Exchange also noted that despite the crisis, last month it won new corporate travel accounts with annualized spend of $150 million.

US State Department Halts Passport Issuing Amid Coronavirus Pandemic

The U.S. Department of State has ceased issuing passports except for “life-or-death emergencies” while coronavirus continues to spread throughout the country.

The new directive, which went into effect in March, was implemented “due to public health measures to limit the spread of COVID-19,”

 The State Department will make an exception for “immediate international travel within 72 hours” in life-or-death situations, including serious illnesses, injuries, or deaths in the immediate family. In that case, applicants would need their full application, proof of the emergency like a signed letter from a hospital or a death certificate (translated into English) and proof of their itinerary or ticket.

To make one of these appointments, applicants need to call the National Passport Information Center at (877) 487-2778 or call (202) 647-4000 outside of business hours.

The State Department said it would continue to fulfill requests for people who had applied for an expedited passport anytime before March 20.

It is not immediately clear when the State Department would start taking applications again.

The new policy also comes as the deadline for Real ID driver’s licenses and ID cards was postponed as the application requires an in-person visit to the DMV.

Money On The Walls - A Restaurant Supports Staff in COVID19 Shutdown

What Will Be The New Normal in Hospitality? A discussion

With emotional ‘farewell’, Maldives’ first resort takes break amidst coronavirus outbreak

The coronavirus pandemic has hit the Maldivian economy hard, as travel restrictions and other preventive measures affect the country’s lucrative tourism industry, which contributes the bulk of the island nation’s state revenue and foreign reserves.

Before the pandemic, the government had been bullish about tourism prospects, targeting two million, high-spending holidaymakers this year after last year’s record 1.7 million.

Tourist arrivals saw a year-over-year decline of 22.8 per cent in the first 10 days of March. With arrival numbers falling, several resorts across the Maldives are being closed.

One notable resort that is suspending its operations is Kurumba Maldives, the very first resort that introduced tourism to the Maldives and whose opening in 1972 kicked off the island nation’s transformation from one of the world’s poorest countries to a world-class holiday destination favoured by the rich and famous.

How a Luxury Hotel on Billionaires’ Row Became a Dorm for Hospital Workers

Just a few weeks ago, it was typical for personal assistants to make reservations for thousand-dollar rooms at the Four Seasons Hotel New York for their high-profile bosses.

Remnants of the hotel’s luxurious past — the Art Deco-inspired entrance, the onyx ceiling in the main lobby, the oversize soaking tubs in the suites — are extravagant extras now that the five-star property has been converted into something akin to a military barracks.

The Four Seasons, just like nearby Central Park and the USTA Billie Jean King National Tennis Center in Flushing, Queens, is yet another New York City landmark being retrofitted to fight the pandemic.

Although other hotels in the city are helping with hospital bed overflow, the Four Seasons has dedicated itself exclusively to keeping doctors, nurses and other medical professionals well rested and safe

At the entrance, two nurses, wearing N95 masks, take the temperatures of all guests, asking questions about symptoms over the past 72 hours and if they’ve washed their hands. Once inside, guests go straight to their rooms; there is no bar or restaurant. Elevators carry one passenger at a time; others must wait on taped Xs on the floor, placed six feet apart.

Of the hotel’s 368 rooms, only 225 will have guests to limit crowding on the property.

Guests and hotel staff no longer interact. For check-in, keys are placed in envelopes on a table

Dirty items are collected only after guests, who stay for a minimum of seven days, check out and the room has been fumigated

India's top hotels will now deliver meals at lower rates amid lockdown

With social distancing becoming the new normal, hotels such as Indian Hotels, Marriott, Grand Hyatt and Accor Group Hotels are ensuring their meals reach the doorsteps of guests. For an industry that counts heavily on the overall experience, a personalised touch and ambience to pamper its guests, this is a first.

Guests can choose their favourite cuisines from a specially curated compact menu at a tad lower price than what they would have paid when dining at the hotel restaurants.

 The owner of Taj hotels is offering confectionary and gourmet hampers and a hamper for spa at home

Marriott International, the world's largest hotel chain, too, is pulling all plugs for its guests to beat the lockdown blues. Its brands including JW Marriott, Sheraton, Ritz Carlton, and Four Points are giving the guests an option for a take away or home delivery.

The hotels have introduced a compact menu of their signature dishes and are already seeing a positive response from local residents in their vicinity, she said. Stringent checks and safety measures are being taken while preparing, packaging and delivering these meals across homes.

Accor pledges to pay for employee Covid-19 medical bills

The group said that more than half of its Accor-branded hotels worldwide are currently closed, with this figure likely to rise to two thirds in the coming weeks.

Accor said that the deteriorating situation had led it to take “aggressive, incremental actions”, including a travel ban, hiring freeze, reduced schedules and /or furloughing for 75 per cent of global head office teams for the second quarter of this year, resulting in a reduction in costs of at least €60m for the year

Recurring investment plans have also been reviewed, reducing costs by another €60m, and other costs including sales, marketing and IT have been streamlined.

Board members will forego 20 per cent of their fees, and the group’s chairman and CEO Sébastien Bazin will take a 25 per cent pay cut, with the cash equivalent being contributed to the fund.

The group said that its “recent asset-light transformation and cash preservation strategy” meant it had a strong balance sheet, with over €2.5 billion in cash on hand and an undrawn revolving credit facility of €1.2 billion, and it stressed that while it expected “a severe impact” on its 2020 performance, it remained bullish on the long-term perspective of the hospitality industry.

Accor pledged to pay Covid-19 related hospital expenses for all of its 300,000 employees who do not have social security or medical insurance

Buy Indian Hotels, target price Rs 100: Anand Rathi

Anand Rathi has given a buy rating to Indian Hotels with a target price of Rs 100.

With the "no-travel" policy and companies adopting "work from home", the brokerage expects the impact of the virus to begin waning by June-July, and business to pick up in H2 FY21. It also assumes that as the last few months of 2020 roll in, inbound travel is likely to be a fraction of what India gets in typical years. Considering the situation and its impact on hospitality, the FY21e/FY22e EBITDA for Indian Hotels has been cut by 71.7 per cent/39.7 per cent.

The share price moved up by 2.38 per cent from its previous close of Rs 69.35. The stock last traded price is Rs 71. Incorporated in 1902, Indian Hotels has a market cap of Rs 8253.45 crore.

Investment Rationale

Key assumptions taken for FY21 are: standalone properties: 40 per cent occupancy with 12 per cent y/y cut in ARR; US and UK properties: 30 per cent occupancy with 12 per cent y/y cut in ARR). The brokerage retains buy rating on the stock, with a lower target price of Rs 100, from Rs 180 (sum-of-parts or SoTP valuation)
For the quarter ended December 31, 2019, the company reported consolidated sales of Rs 1372.72 crore, up 36.26 per cent from last quarter sales of Rs 1007.44 crore and up 3.72 per cent from last year's same quarter sales of Rs 1323.45 crore. The company reported net profit after tax of Rs 193.73 crore in the latest quarter.

Marriott reveals another security breach: 5.2 million guests exposed

A Marriott International franchise property may have been the source of a data leak that compromised information on up to 5.2 million hotel guests The breach involved the login credentials belonging to two employees; the incident happened in mid-January and was discovered by Marriott in late February 2020. The intruder’s access has since been disabled.

The latest breach

The security breach was discovered when Marriott found that ‘an unexpected amount of guest information may have been accessed’ using the two aforementioned compromised employee credentials. Those logins have since been disabled and the company has been investigating the security breach, as well as increasing its monitoring

If there’s an element of good news regarding this latest Marriott data breach, it’s that for now, at least, ‘the company currently has no reason to believe’ that certain vital guest details were accessed, including things like driver’s license numbers, bank card info, PINs, passport data, or national ID information. Certain sensitive details were potentially exposed, however.

Going forward

Security breach involved things like gender, birth dates, work company, loyalty account points and numbers, email addresses, phone numbers, mailing addresses, and names.

Not the first time

This isn’t the first time Marriott has faced a large security breach. In early 2019, for example, the company revealed that up to five million unencrypted passport numbers belonging to hotel guests had been exposed by its system. That breach involved the Starwood reservation system and impacted up to 383 million guests who stayed at one of the properties before September 11, 2018.