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 .