Major Brands Offer Relief in COVID-19

Major global hotels brands have implemented a number of fee reducttions and relaxed several standards and initiatives amidst the coronavirus outbreak

Marriott

  • Fee Relief

    50.0% credit for the fixed portion of the PSF for April and May ,with payment deferred until 9/1/20

    60.0 -70.0% reductions in shared services costs ,including RMAS and Field Marketing

  • Cycle Renovations

    Deferring all cycle renovations that are due in 2020 by one year

  • FF&E

    Walving required funding of FF&E reserves for six months with ability to borrow FF&E for working capitals needs,with lender consent as needed

  • Brand Standards /Initiatives

    Guest Satisfaction Surveys will be suspended for Wave 1,2020(1/1-6/30)

    Deferred all brand and global initiatives with only mission -critial areas

  • Audits and PIPs

    Brand Standard Audit activities are paused until 6/30/20 .This include BSAs asa well as audits for beverage and experientials

  • Meeting & Training

Paused all mandatory ,in-person,off-site training classes and will instead leverage Digital learing Zon

Hilton

  • Fee Relief

    RMCC hotels -50.0%fee for 90 days for any hotels with occupancy <50.0% over that time period

    Suspended RMCC hotels will receive a 75.5% fee reduction while out of operation

    Temporary suspension of guest assistance intervention fees

  • Cycle Renovations

    Awaiting Annoucement

  • FF&E

    Does not have an FF&E reserve in franchise agreement

  • Brand Standards /Initiative

    SALT scores have been suspended

    Reassessing compliance dates for technology refreshes ,as well as suspending all OnQ refreshes for atleast 60 days

    Deferring the launch of several product initiatives as well as extending compliance dates until further notice

  • Audits and PIPs

    For any items due in 2020 -there is a potential to extend by 12 months

    It will adjust the frequency to accommodate the current business climate,QA penalities waived for 2020

  • Meeting & Training

    All in-person training will be put on hold until after June .Those who require training to do so via Hilton University online where appropriate

    IHG

  • Fee Relief

    Fee Relief and Fee deferral options from 3/1/20-5/31/20 (excluding KIpton Hotel & Restraurants )

    SERVICE CONTRIBUTRION :50% discount throuGH 5/321 and deferrable for 90 days

    Technology fee :25 .0 % discount 5/31

  • Cycle Renovations

    Mid -cycle renovatios are deferred until 1/21

  • FF&E

    Waiving FF&E and Capital reserve requirement through 12/31/20

  • Brand Standards /Initiative

    Love scrores remain in operation

    IHG will defer the publication of any new standard until 11/20

    Relaxing brand standard in Multiple areas ,including F&B Operations,Training, Technology and Loyalty ,with compliance dates extented to later this year and others into 2021

  • Audits and PIPs

    Any PIP milestone dates due between now and 12/31/20 ,will get a nine month extention to that due date

  • IHG is currently designing vir]tual touchpoints to support cleanliness and brand safely standard until 6/30/20

    Meeting & Training

  • IHG will suspend all in-person training and move to all -virtual training sessions.Cancellation fees will be waived for current registered courses ,the training credit standard for hotels will be reduced by 25%

    Hyatt

  • Fee Relief

    Centralized Revenue Management Fee (applicable to all select service proporties participating in Hyatt’s CRM services)

    50% relief in April and May or $775 per month .

  • Cycle Renovations

    Deffering all cycle renovations that are due now through 6/30/21

  • FF&E

    Deferring FF&E deposits for the remainder of 2020.Hotels may use the amount on deposit in replacement funds to cover general operating expenses ,which may be subject to lender approval

  • Brand Standards /Initiative

    All brand initatives with budgetary implication will be postponed for the remainder of 2020

    For hotels with temporary suspended operations post surveys will restart upon resuming business operations

    For operating hotels -Hyatts surveys will restart on 5/31/20

  • Audits and PIPs

    Will suspend formal brand standard audit activities for 2020,and will suspend PIPs,as approved by Hyatt,through 12/31/20

  • Meeting & Training

    Suspended all in-person and off-site Hyatt meeting and training classes ,and will instead leverage Hyatt connect and digital training tools to conduct all manadotory and recommended training .

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