U.S. Hotel Industry Reports 22.6 Percent Occupancy for Week Ending March 28th - 2020

Reflecting the continued impact of the COVID-19 pandemic, the U.S. hotel industry reported significant year-over-year declines in the three key performance metrics during the week of 22-28 March 2020, according to data from STR. 

In comparison with the week of 24-30 March 2019, the industry recorded the following:

• Occupancy: -67.5% to 22.6%

• Average daily rate (ADR): -39.4% to US$79.92

• Revenue per available room (RevPAR): -80.3% to US$18.0500

  Aggregate data for the Top 25 Markets showed steeper declines across the metrics: occupancy (-74.5% to 19.6%), ADR (-43.9% to US$89.71) and RevPAR (-85.7% to US$17.60).  

  New Orleans, Louisiana, recorded the steepest decline in RevPAR (-92.8% to US$10.27), due primarily to the second-largest decreases in occupancy (-84.9% to 12.7%) and ADR (-52.3% to US$80.74).

  Oahu Island, Hawaii, experienced the steepest drop in occupancy (-86.4% to 10.5%).

  Miami/Hialeah, Florida, posted the largest decline in ADR (-57.9% to US$116.64). 

  Of note, occupancy in New York, New York, was down 81.8% to 15.2%. In Seattle, Washington, occupancy dropped 76.6% to 18.5%.

Distressed Hotels: What to Do with Distressed Hotels. Lender (and Borrower) Guide - By Jim Butler

When a hotel loan gets in trouble, a lender should immediately perform a Comprehensive Situation Analysis. Borrowers should do the same and be fast to approach lenders with candor and an actual plan demonstrating what is needed and how it will work. This Comprehensive Situation Analysis is the foundation for making some of the most important decisions that the lender and borrower will face on what to do with a distressed loan or asset. When the Comprehensive Situation Analysis is completed, what’s next? What do the amassed facts indicate? How do they tell the parties what to do? What are the alternatives for dealing with a troubled hotel loan? Basically, the alternatives for a lender with troubled hotel asset are:

1. Do nothing (or sell the loan)

2. Workout the loan

3. Appoint a receiver

4. Seek a deed-in-lieu

5. Commence foreclosure

6. Seek Relief in bankruptcy proceedings

The matrix below shows how many of the relevant factors will suggest the appropriate alternative to select.

For matrix please visit below mention link :

https://hotellaw.jmbm.com/files/2020/03/Alternative-Strategies-for-Trouble-Loans.pdf

Hotel Sales Teams: Two Sales Tasks You Can Do This Week To Get Ready For The Rebound - By Doug Kennedy

About Doug Kennedy

Doug Kennedy is President of the Kennedy Training Network, Inc. a leading provider of hotel sales, guest service, reservations, and front desk training programs and telephone mystery shopping services for the lodging and hospitality industry

Since 1996, Doug’s monthly training articles have been published worldwide, making him one of the most widely read hospitality industry authorities

For most hotels in North America, the sales team is entering week three of the Covid19 disruption. The first week or so was just crazy, as salespeople from all market segments endured a frantic wave of cancelations and postponements.  Just as that wave was starting to pass, most sales leaders had to make the difficult move of furloughing or laying off sales staff to pare down the payroll costs

Rather than signing off work early, here are two sales-related tasks you can do right now to get ready for the rebound, with more to come soon in my future blogs published here.

1) Reach out personally to your key client contacts.Instead, use your time to connect personally one-to-one.  For your very top tier, long-term clients, consider a phone call during their local business hours. State upfront that you are just calling to check on them personally. For most clients, a personal email is the best medium. While it’s okay to start with a template for an opening and ending, be sure to include something in the first few sentences that shows the receiver it’s genuine, not generic.

2) Master the use of your sales CRM.  When travel fully reopens, the competition is going to be greater than ever for the leads that resurface first.  

Instead, they use a mixed bag of inefficient tools such as flagged emails, calendar appointments, post-it notes and handwritten notes scribbled on print-outs of RFP’s.  This is a great time to become hyper-organized so you can be efficient later when the pent-up demand breaks through the barrier.

Register for the online tutorials that most sales CRMs offer, or to schedule a screen-share meeting with a coworker or friend to share tips and tactics.  Clean-up your CRM “task lists” and eliminate the past-due ones that have been haunting you for too long now. Get with your system administrator and redo the “auto-tasks” that occur when business goes definite, so they match what you truly need, and don’t clog-up your future lists with red flags.

Marriott International Notifies Guests of Property System Incident

Hotels operated and franchised under Marriott’s brands use an application to help provide services to guests at hotels. At the end of February 2020, the company identified that an unexpected amount of guest information may have been accessed using the login credentials of two employees at a franchise property. The company believes that this activity started in mid-January 2020. Upon discovery, the company confirmed that the login credentials were disabled, immediately began an investigation, implemented heightened monitoring, and arranged resources to inform and assist guests. Marriott also notified relevant authorities and is supporting their investigations.

Although Marriott’s investigation is ongoing, the company currently has no reason to believe that the information involved included Marriott Bonvoy account passwords or PINs, payment card information, passport information, national IDs, or driver’s license numbers.

At this point, the company believes that the following information may have been involved for up to approximately 5.2 million guests, although not all of this information was present for every guest involved:

• contact details (e.g., name, mailing address, email address, and phone number)

• loyalty account information (e.g., account number and points balance, but not passwords)

• additional personal details (e.g., company, gender, and birthday day and month)

• partnerships and affiliations (e.g., linked airline loyalty programs and numbers)

• preferences (e.g., stay/room preferences and language preference)

  Marriott is sending emails to guests involved. Marriott has also set up a dedicated website (www.mysupport.marriott.com) and call center resources with additional information for guests. The call center resources can be reached by calling the numbers listed on the dedicated website. The email sent to guests and the website also contain a list of steps guests involved can consider taking and information about enrolling in a personal information monitoring service that Marriott is providing.

Layoffs, rejig one-time exercise, will be over soon: Oyo CEO

Some parts of Oyo Hotels & Homes weren’t probably ready for the pace of growth it has witnessed and the hospitality chain is trying to address such issues this year, says its new chief executive for India and South Asia, Rohit Kapoor in an exclusive interview to The Economic Times. While confirming reports of job cuts at the company, he tells Anumeha Chaturvedi that it is asking about 15-20% of its 12,000 employees to go in a “one-time exercise” that “is going to end very soon”. There is no  deadline from Japanese investor SoftBank to report operational profitability on some businesses, he says, and adds that the management is committed to improving relations with hotel partners.

Oyo founder Ritesh Agarwal has reportedly said the company is asking some of its employees to move to a new career. What explains this?
The question that whether some staff members are being asked to go is correct. Over the last one and a half years, there has been an increase in revenue to about 3x, and we had 1-million-plus rooms globally by the end of 2019. But I don’t think we have any hesitation in admitting that growing at the pace that we did over the last three years, we did sometimes go ahead of ourselves … What we mean is that maybe all parts of the organisation were not ready for that pace of growth and that scale of  of operations, and 2020 is the year when we are taking active steps to address this. We have a clear roadmap for continuing to drive success for Oyo for this year and beyond based on factors like sustainable growth.

Radisson Hotel Group continues to expand in China’s most dynamic destinations with new signing

Radisson Blu Hotel Nanjing South New Town is a striking new upper-upscale hotel being developed in Nanjing South New Town, a rapidly emerging commercial area that will become the city’s new CBD.

Scheduled to open its doors in 2024, Radisson Blu Hotel Nanjing South New Town will feature 300 contemporary rooms and suites. The property is being developed by Nanjing South New Town Exhibition Centre Development Co., Ltd.

“Nanjing has always been one of China’s most important cities; its name literally means ‘Southern Capital,’ which reflects its historical influence. Today, Nanjing remains one of China’s 21st century most vibrant destinations and the rise of Nanjing South New Town will further enhance its development

With its world-class accommodation, facilities and conference space, Radisson Blu Hotel Nanjing South New Town will be a central landmark in this exciting new district

Live Survey Reveals 50 Percent of Hotels Not Planning to Close Properties Due to COVID-19

Knowland, the leader in group hospitality analytics for hotels, convention and visitor bureaus, conference centers and other meeting venues, announced the results of a live survey of more than 700 hoteliers conducted during its informative webinar “COVID-19 Preparing Today for Success Tomorrow.” Knowland’s VP of product management, Kristi White provided insight and guidance during a webinar held on March 25, 2020 

Throughout the webinar, hoteliers were eager to respond to a series of questions about how they were handling the COVID-19 crisis. Questions such as “Is your hotel closed?” and “What percentage of cancellations have you received for the next 90-120 days” were asked in order to gain insight into the current situation.

• Survey reveals “stay the course” mentality – While 70 percent have had 75 percent plus cancellations over the next 90-120 days, 50 percent of participants indicated that they are not planning to close their hotels and were “staying the course” during this time. This may be due to the fact that many hoteliers are hoping the new CARES Act stimulus bill will help keep them from shutting their doors and their teams capable of prospecting business over the next 60-75 days, however approximately 23% of attendees reported that closing their hotel was “under consideration.”

• Pivot and train your sales teams – White advised attendees to evaluate sales team members to determine those that are best qualified to conduct outreach based on compassion and assistance, as opposed to “making the sale.”

• Identify and cater to local market opportunities – The survey also revealed that 50 percent of participants conducted local sales outreach earlier this year, compared to 38% in 2019. Corporate, government and local catering, as well as smaller and regional events and local drive market will bounce back first. Knowland provides key profile indicators such as what businesses have held local events, the history of their performance (such as what they did during the 2008 recession) to help sales teams better identify potential local customers.

Radisson Hotel Group Expands Its Presence in Brazil

“Our partnership with Atlantica Hotels allows us to bring the bright, inviting and balanced feel of the Radisson brand into vibrant cities like Anápolis, Brazil,” said Frances Gonzalez, vice president of Operations for Radisson Hotel Group in Latin America. “We believe every modern traveler should have a hospitality experience that allows them to find more harmony in both their work and leisure lives, and we are excited to continue creating these experiences in destinations around Latin America.”

Atlantica Hotels is a licensee for Radisson Hotel Group’s brands in Brazil, including Radisson Blu, Radisson, Radisson RED and Park Inn by Radisson.

Kimpton Charlotte Square (UK) has announced the appointment of Kieran Quinn as General Manager

Kimpton Charlotte Square, has announced the appointment of Kieran Quinn as General Manager. Kieran will oversee the 199 room property located in the heart of Edinburgh and brings over 20 years of experience

He began his career in hospitality in his teenage years in his native Donegal in Ireland. He then qualified with distinction from Shannon College of Hotel Management in Ireland

His most recent position was General Manager for Crowne Plaza Edinburgh Royal Terrace where he was instrumental in completing the hotel’s renovation, increasing average rate and achieving record revenues for the hotel

Commenting on his new position as Hotel General Manager, He said: “The Kimpton ethos is one I'm incredibly passionate about. We believe that heartfelt human connections can really make a difference to people's lives. This goes for the team as well as our guests. It's the authentic personal touches that we deliver day in day out here at the hotel that make a real difference to our guests' experience.

Hotels and Airports See Jaw-Dropping Declines in Foot Traffic in March

Social distancing is a precautionary measure against coronavirus, but it is also taking a hit on the global economy

The Sheraton New York Times Square Hotel saw a 70 percent drop in foot traffic between the end of February and the second week of March. Foot traffic at a DoubleTree hotel at the Seattle-Tacoma International Airport declined nearly 65 percent in the same timeframe. Traffic at the Four Seasons Hotel San Francisco and the Sheraton Gateway Los Angeles Hotel was down 60 percent and 51 percent, respectively.

“The effect of coronavirus is going to leave a lasting impression on travel, both domestic and international,”

John F. Kennedy International Airport had the biggest decline in foot traffic of all U.S. airports in the Placer.ai study. The airport, New York City’s busiest, had a nearly 42 percent foot traffic drop from late February to the second week in March. San Francisco International had a 41 percent decline, and Seattle-Tacoma International Airport rounded out the top three with a nearly 37 percent drop

Millennium & Copthorne Hotels Seeks Stability, Long-Term Growth Under New CEO

Nobody envies the job of a CEO these days, but Clarence Tan, who will take up the group CEO position at newly-privatized Millennium & Copthone Hotels starting April 2, is set for a tougher ride.

Singapore-based City Developments, which now owns the hospitality subsidiary wholly,Millennium & Copthorne was delisted from the London Stock Exchange last October, after a protracted two-year battle between City Developments and smaller shareholders to take the company private

The chain’s last CEO, Jennifer Fox, lasted all of three months in the job. Since her departure in September 2018, there has been no dedicated CEO, with the chain overseen an interim CEO, Tan Kian Seng. Two other directors, Sue Farr and Gervase MacGregor, also left in the latter half of 2018.

Apart from inheriting an organization that has seen a good deal of instability, and reporting to a real tough boss, City Developments and Millennium & Copthorne executive chairman and Singapore tycoon Kwek Leng Beng, Tan will have to lead Millennium & Copthorne during the worst crisis ever to hit the travel industry, the coronavirus.

U.S. Hotels Will Need More Than What’s in the $2 Trillion Relief Package: Industry Trade Group CEO

The $2 trillion U.S. economic relief package passed Friday to offset a coronavirus economic downturn is more of a lifeline than stimulus to the hotel industry, according to the CEO of one of the industry’s largest trade groups.

U.S. President Donald Trump signed the Coronavirus Aid, Relief, and Economic Security — or CARES — Act into law.Many hotel operators qualify for some of the $500 billion in loans and loan guarantees the $2 trillion emergency spending package includes to businesses hit hard by the coronavirus economic downturn.

The CARES Act loan limit is capped at 250% of a business’s average monthly payroll, which the AHLA estimates is enough to enable hoteliers to meet payroll and debt service obligations for four to eight weeks. But the trade group wanted to see the limit at a higher 400% cap.

Companies like Marriott, Hilton, and Hyatt have furloughed tens of thousands of employees while occupancy at some properties plunge to single-digit levels. The April 1 rent and mortgage payment deadline this week will be an initial financial hurdle for the industry in the ongoing coronavirus-led economic downturn. For the most part, Rogers said he is hearing of lenders and landlords offering short-term leniency on upcoming payments.

The CARES Act offers SBA loan forgiveness to businesses that re-hire furloughed employees by June 30, but the AHLA doesn’t anticipate the hotel industry will be fully recovered by then. Instead, the organization wants the deadline pushed out.

A Mexican Chef Makes History As The First Mexican Woman To Win A Michelin Star

The 36-year-old leads the team at the Gucci Osteria da Massimo Bottura restaurant in Florence, Italy. She’s also the sole female to be named in the 2020 Michelin Guide Italy.

 Michelin’s review of her restaurant: “The cuisine of theatrical chef Massimo Bottura has arrived in Florence, demonstrating openness to the rest of the world, with influences and reinterpretations of dishes from other countries, as well as Italy and Modena in particular. A visit to the Gucci Garden, an elegant museum on the upper floors dedicated to the famous fashion house, is highly recommended.” We love how the review includes that López is including perhaps Mexican influences in her Italian creations

For more info please visit below mention link:

https://wearemitu.com/culture/karime-lopez-chef-michelin-star/#brid_cp_Brid_12348598

Hilton Partners with Leading Companies to Find Temporary Jobs for Displaced Hotel Team Members

As the hospitality industry responds to the novel coronavirus (COVID-19), Hilton is partnering with leading companies to connect workers from temporarily suspended hotels with hundreds of thousands of short-term jobs created by the global pandemic.

Hilton Team Members, and others in the industry seeking employment, will be given direct access and in some cases expedited access to temporary jobs on the Hilton Workforce Resource Center at companies such as Albertsons, Amazon, CVS, Lidl, Sunrise Senior Living and Walgreens.

These partners recognize the power of a service culture and the value of hospitality skills training Hilton Team Members are known to receive. With a diverse range of experience reflected in the eligible candidate pool, these Team Members are an ideal fit to quickly step in and assist organizations in temporary assignments.

Hilton hopes to expand the program globally and plans to welcome these Team Members back when travel resumes.

Hospitality Sector Teams Up Online to Help During the Crisis

The hotel and lodging industry has been pulling together online resources to help each other and their communities during the coronavirus crisis.

Helping re-purpose beds for medical use may be the most obvious possible way to help. A new tech platform launched earlier this week can make the matchmaking process easier between lodging operators and local emergency efforts. Owners of a property can make beds or buildings available by using an online form to specify how they’re willing to help. Cloudbeds has worked with Sabre, Marriott, and RateGain and others on the effort.

Hotels for Helpers, in the Netherlands, is a booking engine offering discounted rooms for those in need, in an effort joined by tech provider Mews.

A new reservations portal provides accommodation to healthcare workers at no cost in Lisbon and Porto, Portugal. It’s called Rooms Against Covid, and GuestCentric Systems and HiJiffy created it.

Oyo Hotels & Homes said it would open the doors of its more than 300 hotels in the U.S. to offer free stays to doctors, nurses, and other medical first responders who are helping in the fight against coronavirus.

ONLINE RESOURCES FOR OPERATIONAL SURVIVAL

The hospitality sector also has to heal itself from the wounds of travel bans and the economic crash. Here’s a roundup of some of the hotel and lodging sector resources of note:

Travel tech company RateGain has put together a “Better Tomorrow” resource page to help hoteliers with insights into lessons to learn from Asia. The page draws partly on resources from the trade group Hospitality Sales & Marketing Association International (HSMAI), which has its own online resources, too.

Workers who have lost their jobs and are struggling with mental stress can turn to the U.S. site Restaurant After Hours for links to resources. In Canada, Service Hospitality, a non-profit association for workers, has created a Covid-19 resources page

For more information please visit on below mention side :

https://www.cloudbeds.com/covid-19-hospitality-helps/

https://servicehospitality.com/coronavirus-guide-for-hospitality/

Russia Closes State-Run Hotels, Resorts Over Rising Coronavirus Cases

Russia ordered its vast network of state-run hotels, resorts and recreational facilities to shut down from March 28 until June 1, as its number of confirmed coronavirus cases rose past 1,000.

The official tally of confirmed cases jumped by a record daily amount for the third day in a row on Friday, bringing Russia’s total to 1,036 a day after it moved to suspend all international flights. Four people have died.

Russia’s mass domestic tourism and recreation sector is still dominated by the state, a legacy from Soviet times. Millions of Russians still holiday each year at vast state-run hotels, resorts, health spas and children’s camps.

An opinion poll by the Moscow-based Levada Centre showed the majority of Russians, some 59 percent, do not believe the official figures. Twenty-four percent said they “absolutely” did not believe them and 35 percent said they only partially believed them, the poll showed.

PEOPLE | Pankaj Saxena has been appointed General Manager at Radisson Blu Mumbai International Airport, India

Pankaj Saxena has been appointed General Manager at Radisson Blu Mumbai International Airport, India close proximity to Mumbai Airport having 206 uniquely designed Rooms / Suites & Spa with multiple dining options. Open to sky Infinity Swimming Pool with scenic view & Alfresco

Pankaj was most recently General Manager at Radisson Blu Pune Hinjawadi - A 5-star hotel. With 151 rooms having Café Blu – Multi-cuisine All Day Dining, Pan Asian Restaurant & Poolside Grill (Over the Top) on the rooftop also with close to 1950 sq. mt. of Meeting & Events. Spa & Art Fitness Studio with Outdoor Swimming Pool.

He brings with him 22 years of hospitality experience in India. Pankaj previously worked at Radisson Varanasi, Sarovar Hotels and ITC Hotels.

Represented at ITB-Berlin and WTM London several times in recent years along with participation in commercial RHG workshops across SE Asia & China Road Show 2019.

Also served In Exe Committee as Vice President 2011-12 Hotels & Restaurant Association of Andhra Pradesh, India affiliated with FHRAI. Certified Leader under RHG The Leaders Excellence Program - 2019 at RHG Corporate Office Brussels, Belgium.

Having done Diploma in Business Administration also holds a Bachelor’s degree in Hotel Management from Mangalore University.

In his recent assignments with RHG. Pankaj has been accredited with various recognitions:

 Radisson Blu Pune Hinjawadi - Conferred WEAR H2 2018 (Week of Employee Appreciation & Recognition) in RHG HR India Workshop 2019.

 Radisson Blu Pune Hinjawadi - Endowed NPS Star (Guest Satisfaction Index) in RHG HR India Workshop 2018.

 Country Inn & Suites By Radisson Mysore - Won Hotel of the Year in Asia Pacific RHG Business Conference Bangkok 2016.

Talented chefs are affected by restaurant closure due to COVID-19 crisis; You can now book an Online Class with them!

We love the idea!

We haven’t had the chance to take a session yet, but this seems like a good idea at a time when both, the learner and the teacher have time on their hands.

see more at - https://learnfromachef.org/

OYO Reveals Extent Of Covid-19 Impact On Revenue, Ops

Hospitality unicorn OYO said that the restrictions have impacted its revenues, operations and cash flows ‘significantly’. As a result, the company has told its partner hotels that there may be possible disruptions in payment cycles. The company might be forced to delay payment of minimum guarantees and other dues to vendors and hotel partners due to various unforeseen reasons.

An ET report said that OYO’s procurement and supply chain head Ankit Agarwal has written to hotels saying, “In the current unprecedented situation and challenging circumstances there may be possible disruption in our payment cycles and we need your understanding and support to sail through this situation.”

President Trump weighs cruise line bailout: Would they need to come home to the U.S.?

President Donald Trump said he likes the idea of major cruise ship companies shifting their corporate registrations to the U.S. as a possible requirement in order to qualify for aid under the federal stimulus bill.

He also voiced support for the notion of the government taking ownership stakes in airlines in exchange for loans to keep them afloat as vital businesses.

The comments came as industries assess how they fared after the Senate passed the $2 trillion stimulus bill,which now goes to the House. Trump has repeatedly voiced support for airlines and cruise ship companies, saying they are great businesses that deserve to be kept afloat despite being devastated by the business downturn in the wake of the coronavirus pandemic.

Trump noted that the cruise lines order a lot of goods in the U.S and have thousands of employees, including many who work on U.S. soil. He hinted that perhaps there may still be a lifeline for the industry by the time the final version of the stimulus hits his desk for a signature