Hospitality Financial Leadership – What Will the Post Pandemic Hotel World Look Like?

Talk about a big change in the way we travel - not to mention the changes in technology and investment.

I think the other side of this pandemic is going to see some profound changes in the traveling world and the hotel business. In this piece, I am going to get my crystal ball out and make some predictions:

Prove you are healthy. Right now, it seems that testing and determining who has had the virus, who has the antibodies, who has a fever, etc., is the path forward to re-opening our world. Will we need to be tested before we travel? Will we need to prove we have had the vaccine or antibodies before we get on a plane in the future? How will hotels receive guests? Will we all need proof we are healthy before we can interact with one another? I can see that this would be a possibility. What will that mean for hotels, restaurants and bars?

Cleanliness scores. In the past two decades, we have seen the social media phenonium of service scores and customer ranking of our hotel world that has had a major impact on how we are perceived by the public. I think going forward that the same applies to our cleanliness. The brand and hotels that have the highest cleanliness scores will be in higher demand by the public. I see a boom in the way this information is collected and used.

Room certifications. Our guests will be demanding clean rooms. We need to come up with a way to guarantee that our rooms are germ-free.

Touchless everything, like check-ins and guest room doors. Anything we can do to remove the need to touch surfaces like elevators, tv remotes, thermostats, etc. will be welcome enhancements that are going to separate the men from the boys when it comes to clients choosing where to stay.

GOPPAR index. The focus will shift from REVPAR index to GOPPAR index. Owners will demand greater transparency and the only way this can be delivered is by comparing the performance of your hotel to a competitive set. Higher REVPAR must translate into higher profits. 

Financial leadership. Our business has always been about providing great service, having engaged colleagues and generating profit The future belongs to the hotels and brands that drive financial leadership skills into all areas of the operation. Having leaders that know how to manage their payroll and expenses and flex those against business levels will be paramount to success

InterContinental Hotels Group PLC Business Update

InterContinental Hotels Group ("IHG") provides a business update in light of the rapidly evolving situation regarding Covid-19.

Current trading

IHG's Global RevPAR decreased 6% across January and February, with a broadly flat performance in the US offset by declines in Greater China, which saw an almost 90% decline in February.

During March, given the measures adopted by governments around the world to restrict travel and social contact, we are anticipating Global RevPAR declines of around 60%, with steeper declines in those markets most impacted by restrictions. Cancellation activity for April and May, and current booking trends, indicate continued challenging conditions. In Greater China we now have 60 hotels closed compared to 178 at the peak, and in recent days have begun to see improvements in occupancy, albeit at low levels.

Cost actions

We have many cost reduction and cash conservation measures at our disposal. These measures will result in a reduction of up to $150m in our fee business costs. Similar actions, along with a reduction in marketing spend, are being taken across the System Fund in response to expected lower assessment fee receipts. We are also taking action in our owned, leased and managed lease hotels to contain costs.

In addition, to support our owners and manage their cash flows, we have launched a comprehensive package of measures including delaying renovations and relaxing brand standards.

Cash Flow

IHG remains conservatively leveraged. The staggered bond maturity profile, with the first maturity of £400m not due for repayment until 2022, provides long term funding. In addition, the company has access to a $1.4bn Revolving Credit Facility (RCF), which is currently $1.2bn undrawn, which together with free cash flow generation provides significant liquidity

 In addition, the Board is withdrawing its recommendation of a final dividend of 85.9¢ (~$150m) announced on 18 February 2020 and will defer consideration of further dividends until visibility has improved.

We continue to monitor the situation closely and will provide further commentary at our First Quarter trading update on 7 May 2020.

Trivago Looks to Reorganize With ‘Significant’ Job Cuts

Faced with a drop of more than 95 percent in referral revenue in the last week of the first quarter, Trivago informed investors that it has started to “make changes to our organizational setup,” including “significant” headcount reductions.

Other than chopping jobs, and reducing costs, Trivago didn’t specify what organizational changes it is making.

Trivago notched a small profit, roughly $18.7 million (euro 17.2 million) in 2019, but was already struggling heading into 2020.

In a letter to shareholders last week, Trivago said it reduced its advertising spend “to an absolute minimum” because of the coronavirus-driven drop-off in demand.

As part of its reorganization, Trivago said “we are targeting a substantial reduction in our cost base going forward.”

GIVING PARTNERS A BREAK

Like Tripadvisor, which is giving a break on subscription bills to hotel and restaurant partners, Trivago said: “We have accommodated the requests of many advertisers to extend payment dates and to pay outstanding invoices in installments.”

Trivago was among eight German startups that pleaded with Google to give them relief from a portion of their first quarter advertising bills.

“Our travel partners are facing unprecedented challenges and we’re working with partners to help protect their businesses, including helping them surface their cancellation policies in our travel search products and expanding our ‘pay per stay’ pilot earlier this month to all hotel ads partners globally to shift the cancellation risk from our partners to us,” 

Luxury Hotel Group Caves to Pressure, Returns $59 Million in Relief Funds

Three publicly traded Texas-based hospitality firms that collectively received nearly $59 million in coronavirus relief funding and are tied to hotelier Monty Bennett announced that they would return the funds after Bennett earlier said he would not turn back the money.

Ashford Inc., Ashford Hospitality Trust, and Braemar Hotels & Resorts released a statement saying the return of Paycheck Protection Program loans under the $2 trillion coronavirus economic relief package stemmed from “the agency’s recently changed rules and inconsistent federal guidance that put the companies at compliance risk.” 

The trio of luxury hotel real estate firms garnered scrutiny for receiving funds, one of the largest amounts delivered by the program, at a time when tens of thousands of small businesses are still locked out from receiving government assistance. Large companies like Shake Shack and Ruth’s Chris Steak House received, and later agreed to return, PPP funding

The Ashford Group of Companies still maintained they would keep the funds, part of a $660 billion program meant for small businesses to maintain payrolls through the ongoing economic crisis.

The group of companies asserted the nature of the hotel industry, where smaller ownership groups typically operate under the flag of a global brand like Marriott or Hilton, qualified them for PPP funds. Since mid-March, the companies have furloughed or laid off 90 percent of their workforce due to coronavirus hindering business. The Small Business Administration has not publicly released a list of PPP loan recipients, but Ashford claimed the hotel industry received less than 3 percent of the initial $350 billion round of PPP loans.

The promise to return the PPP funding comes after travel industry groups like the U.S. Travel Association and the American Hotel & Lodging Association called for the government to discourage unaffected businesses from applying for PPP loans. U.S. Treasury Secretary Steven Mnuchin said that the government will perform a full audit on any company taking out more than $2 million in the small business loan program.

The Ashford companies stated they would return all PPP funds by May 7.

Hotel Industry 2020 – The New Normal

 The "light and warmth of hospitality," coined by Conrad Hilton, will not be apparent upon entrance to a hotel post COVID-19. Expect acrylic covered front desks, masks and gloves, signage advising guests to use caution, frequent disinfecting of public spaces, wide open lobbies with limited seating and restaurants and bars that have six feet of separation in every direction. The good news is that we are approaching the re-opening of the economy!

According to the top prognosticators in the hotel industry, here is what we are looking at from an occupancy, average rate (ADR), RevPAR perspective:

The best case seems to point to a drop in occupancy from 66% in 2019 to 50% in 2020 and a drop in ADR from $133 to $107 resulting in a RevPAR drop of over 30% from $88 to $55. Worst case scenarios have us dropping well below 50% in RevPAR, close to Armageddon. Once STR releases an April forecast, the overall average should increase. These firms have done a tremendous job of analysis given the completely different demand generators—the bad news here is that even in the best scenarios, there are no net profits forecast for 2020.

Operations

Profits will be gone in 2020 with hopes of a return to closer to normal revenues and profits in 2021 or 2022. The implementation of completely new protocols including hospital grade sanitization, masks and thermometers will be fairly expensive relative to supply costs.

Valuation

We can expect values to decline in line with net income, but with less deals done. The real question will be when will values come back to 2019 levels and will it be a buyer's or seller's market. The latter depends on how long it will take for this destabilized market to bounce back. Over-leveraged sellers will be at risk as short-term values will take a precipitous drop. However, lenders will only foreclose on operators who do not engage in a sincere way. They do not want to own hotels. Transaction volumes will be down according to an April, 2020 Lodging Industry Investment Council survey.

Supply

Airbnb and short-term rentals will continue to impact hotels. With unemployment numbers at new highs, millions of Americans will need to find a way to supplement their income and home sharing may be people's means to do so. New supply for those accommodations could surge and have a negative impact on hotel room rates in general. But many cities have sued Airbnb and our original prediction was that they would become an online travel agency (OTA) by 2020. Well, only time will tell, but they have postponed their 2020 IPO.

Demand

We will start to see two separate groups emerge - those who feel they can travel freely, and those who are still susceptible to the virus. The first group is made up of individuals who have tested positive for the virus anti-bodies - meaning they had the virus and lived and those who believe they are not at significant risk. This group will be our primary source of demand, while others may continue to quarantine and limit travel. This summer, we can expect to see "pent up" demand. After being stuck at home for eight or more weeks, consumers will be itching to travel.

Wyndham Hotels & Resorts Launches New “Count on Us” Initiative

Wyndham Hotels & Resorts, the world's largest hotel franchising company with approximately 9,300 hotels across 90 countries, today launched "Count on UsSM," a new long-term, multi-faceted initiative to build confidence among guests and to support franchisees as it begins making preparations to welcome travelers back to its more than 6,000 U.S. hotels.

Launch of the new initiative follows dialogue and collaboration with Wyndham franchisees, members of its Franchise Advisory Councils, leading industry partners, and key trade organizations like the American Hotel & Lodging Association (AHLA).

The immediate focus is to further elevate health and safety protocols at Wyndham hotels in the wake of COVID-19, shore up critical supply chains and introduce new standards, training and guidelines grounded in guidance from the U.S. Centers for Disease Control and Prevention (CDC).

Key early components of the new initiative—designed to be cost neutral when combined with other recent operational changes—are slated to begin rolling out in the coming weeks and include:

 Wyndham will require consistent use of Ecolab's EPA-approved disinfectants in all U.S. hotel guestrooms and public spaces.

Providing hotel owners and their team members with access to Ecolab's best-in-class training and resources, including a field team of more than 2,000 on-the-ground experts ready to assist hotels.

Easy Access to COVID-19 Health Essentials

In response to the growing challenges that many small businesses and individuals face as they try to secure essential health supplies that meet CDC guidelines

Leveraging volume discounts pre-negotiated by Wyndham, these items will be made available at cost to hotel owners with the Company financing all initial shipments and deferring payments from hotels until September 1, 2020

Delivering on the Promise of a "Safe Stay"

As a member of The AHLA Safe Stay Advisory Council, Wyndham has joined with other industry leaders as well as public health experts, scientists and medical leaders to develop a series of industry best practices and guidelines that focus on enhanced hotel cleaning practices, social interactions, and workplace protocols to meet the new health and safety challenges presented by COVID-19

A Visible Commitment to Guests

Count on Us is an extension of Wyndham's signature Count on Me® service culture and is the latest in a growing list of efforts by the Company to help hotels, team members and guests affected by the global impact of COVID-19.

Wyndham has taken unprecedented steps to provide substantial financial assistance to its thousands of hotel owners; united with leading companies to offer alternative employment opportunities to displaced Wyndham team members; updated its policies to provide travelers and Wyndham Rewards members with increased travel flexibility; and launched #EverydayHeroes, a new initiative honoring essential workers on the frontlines of COVID-19.

In the months to come, the Company will look for new ways to bring Count on Us to life, including exploring opportunities to expand the initiative to its hotels around the world.

How Each Hotel Department Can Start Preparing for A "New Normal"​ Re-opening

The re-opening of hotels will likely be gradual, done by risk assessment, and it will probably include many restrictions

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-do your shift schedule for different % of the usual business. In other words, one schedule each for 30% of last year's business, 50%, 80%, etc. You'll be able to explain to your staff why they are getting only a fraction of last year's hours.

• 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 Covid19 disclosure for Phone Reservations to read to each guest and to post on the website (with an electronic "Agree" button).

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.

• Find alternate years to Pace against, maybe 2009. All Pace reports will be negative this year and positive next year so you have to put the number in a different context.

• If there are occupancy limitations, you may be 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.

Operations/Engineering

• Establish process for changing room access and locker distribution for social distancing.

• Simulate common area distancing scenarios, furniture distribution, common bathroom usage rules.

• Do you allow access to the pool by reservation only? If you do, you will need a process for that.

Marketing/Sales

• Practically every page on your website will need a pop-up advisory so might as well start loading those now.

• 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.

Spa/Valet/Parking

• Publish your temporary limited menu of spa services.

• Determine bag handling procedures. Is the bellman allowed into the rooms when they are exposed to common areas of the hotel?.

Best Western® Hotels & Resorts Introduces Industry-Leading Cleaning Program: We Care Clean

Best Western Hotels & Resorts (BWHR) was the first hotel brand to set a high level of cleanliness with the roll out the I Care Clean program in 2012. The program was developed through a partnership with innovation and design firm, IDEO, and required its hotels to focus on guest high touch items and areas with standards

The We Care Clean program expands upon the I Care Clean standards and the enhanced cleaning protocol already in place, and includes the implementation of measures to improve safety - such as the installation of social distancing floor decals and front desk partitions - as well as the enforcement of heightened and comprehensive cleanliness standards on an ongoing basis across five key areas:

Front Desk and Lobby:

 New protocols will minimize guest contact with personnel through a streamlined check-in and check-out process such as the use of Best Western's Mobile Concierge platform.

Enhanced sanitization procedures will be in place at the front desk, in the lobby and across guest touch points throughout the hotel with disinfecting taking place regularly.

Guest Room and Housekeeping:

Unnecessary items will be removed from guest rooms, such as decorative pillows, bed scarves, paper notepads and pens.

Enhanced and thorough cleaning protocols will be implemented in guest rooms. Guest rooms will not be entered for 24 to 72 hours after check-out, at which time the room, linens and all touch points, for example, faucets, door handles, light switches, thermostats, clocks and hangers will be cleaned with chemicals aimed at killing COVID-19

Temporary Breakfast Offerings: While recognizing the importance of a quality breakfast, offerings have been adapted to prioritize the health and safety of guests, including:

 Breakfast offerings that comply with local regulations, with breakfast rooms closed where required to avoid unnecessary guest congregation.

Enhanced 'Grab & Go' offerings will be implemented in most hotels providing guests with pre-packaged food and beverage options.

Public Amenities:

 When allowed to open, public amenities such as fitness centers, swimming pools and meeting rooms will be cleaned on closely monitored schedules with disinfecting chemicals.

Hotel Employees and Staff Requirements:

Hotel employees will follow strict guidelines, including utilizing Personal Protective Equipment, frequent and stringent hand-washing protocols, and housekeepers/laundry staff will wear both gloves and a mask.

 Employees will be empowered to stay home if unwell, communicate their potential exposure to COVID-19 with management, and will be fully educated on how to maintain a safe and clean home

This announcement is the latest example of BWHR's commitment to supporting its hoteliers, guests and communities during the COVID-19 health crisis. BWHR was the first hotel company to offer a relief package to its hoteliers to help ease the financial burden during this challenging time. BWHR was also the first in the industry to extend loyalty status to its BWR members whose travel plans have been greatly impacted by travel restrictions and cancellations resulting from the COVID-19 pandemic.

WTTC Outlines What “The New Normal” Will Look Like As We Start To Travel

The World Travel & Tourism Council (WTTC) has outlined what the "new normal" will look like as countries begin to end their COVID-19 lockdowns and ease travel restrictions.

"Travelling in the New Normal" is part of WTTC's plan which includes critical steps and coordinated actions, including new standards and protocols, which offer a safe and responsible road to recovery for the global Travel & Tourism sector as consumers start planning trips again.

Public-private collaboration between business and governments is vital to develop new health protocols which will form the travel experience and also provide people with strong reassurances when travelling.

WTTC believes younger travellers in the 18-35 age group, who appear to be less vulnerable to COVID-19, may also be among the first to begin travelling once again.

"We should avoid new, unnecessary procedures that create bottle necks and slow down the recovery. However, a quick and effective restart of travel will only happen if governments around the world agree to a common set of health protocols developed by the private sector, such as those we've outlined.

"These must provide the reassurance travellers and authorities need, using new technology, to offer hassle-free, pre-vaccine 'new normal' travel in the short term."

This includes the International Air Transport Association (IATA), the Airport Council International (ACI), Cruise Lines International Association (CLIA), United States Travel Association (USTA), Pacific Asia Travel Association (PATA), International Civil Aviation Organisation (ICAO), the Organisation for Economic Co-operation and Development (OECD), the European Travel Commission (ETC) and the World Tourism Organisation (UNWTO).

IATA, ACI and ICAO are pooling their crucial expertise and are working closely to define the best protocols to keep travellers and employees safe to enable the aviation sector to recover. The World Health Organisation (WHO) and other health experts have also contributed by providing their experience from various global medical crises.

There will be new protocols for check-in involving digital technology; hand sanitiser stations at frequent points including where luggage is stored; contactless payment instead of cash; using stairs more often than lifts where the 2 meter rule can be harder to maintain; and fitness equipment being moved for greater separation among other examples.

There are positive signs of the first green shoots of recovery. Research by travel data and analytics expert Cirium shows that over 30% of domestic capacity has returned to the Chinese aviation market in the last two months

WTTC says the Travel & Tourism sector is now facing over 100 million job losses worldwide due to the coronavirus pandemic, at a cost of up to US$2.7 trillion of GDP.

In 2019, Travel & Tourism contributed 10.3% of Global GDP, was responsible for generating one in four of the world's new jobs and, for nine successive years, had outpaced the growth of the global economy.

U.S. Hotel Profits Per Room Cratered to Losses in March

Gross operating profit per available room at U.S. hotels dropped nearly 102 percent in March, translating to an average 2 percent in losses, according to STR.

Coronavirus hotspots saw some of the worst drops in hotel profits. New York City had the steepest profit decline, with a 203 percent drop, followed by Chicago, at 201 percent, and Seattle, at 158 percent. Upper-upscale properties were the worst performing sector with a 108 percent decline in profits

The U.S. hotel industry expected a slowdown in 2020, as new supply delivered and the country entered a very late stage of its more than 10-year economic expansion. But coronavirus accelerated the predicted market correction to an unprecedented nosedive.

Hotel occupancy levels hit single digits. Demand dropped 41 percent in March and 14 percent for the entire first quarter, according to CBRE Hotels Research. The real estate firm predicts a 46 percent decline in revenue per available room, or RevPAR, for the year. The previous worst year on record was the 25 percent RevPAR decline seen in 1932.

With occupancy levels so low, it is almost impossible for hoteliers to generate enough revenue to cover operating expenses let alone debt service obligations. Many have decided to temporarily suspend operations until some level of travel demand returns. More than 5,000 U.S. hotels have closed as a result of depleted demand, according to CBRE. Mandelbaum still expects many of those to reopen.

Hospitality Industry Top Winners and Losers in the Post-Crisis Era

Here are the big winners as a result of the current coronavirus crisis:

1. Major Hotel Chains:  Currently 8 global hotel brands dominate many major markets: already 70% of hotel rooms in the U.S. and 50% in the U.K. belong to branded properties. 58.3% of roomnights, dominance in the corporate travel and group markets, comprehensive technology stack, expertise in maintaining and increasing occupancy and RevPARs in post-crisis, unparalleled direct channel distribution, 2x lower OTA commissions and 3x-4x lower dependency on the OTAs.

2. OTAs: The OTAs have emerged stronger after all of the previous crisis and calamities: 9/11, SARS, MERS, the recession, ZIKA, H1N1.. This "online planning and purchasing education" has created millions of converts and believers in online travel planning and booking, which will benefit the OTAs immensely.

3. Automation and Robotization of the Hospitality Industry:With labor costs constituting 33%-38% of overall operational cost and top line revenues plummeting, owners and managers will be looking to curtail costs and boost efficiencies. Next gen technology applications, automation, robots and devices will be replacing or augmenting back office operations, housekeepers, porters, reservation staff, front desk clerks, concierges, porters, line cooks, wait staff, etc. with robots, automation, AI-powered mobile check-ins and self-check-in and self-ordering kiosks etc.

Here are the biggest losers as a result of the coronavirus crisis:

1. Traditional and brick-and-mortar travel intermediaries: Even before the crisis the traditional intermediaries have been steadily losing market share. In the U.S. from more than 30,000 travel agencies 20 years ago, there were less than 9,000 left before the crisis. In the UK from nearly 9,000 travel agencies back in 2000, today there are less than 4,300 left

2. Destinations relying on long-haul or foreign feeder markets:

Drive-in and short-haul feeder markets will be the first to "wake up" in the immediate post-crisis period.Destinations relying on long-haul, fly-in or foreign feeder markets will experience very slow and painful recovery, which will extend well into 2021.

3. Independent Hotels:

The number of independent hotels has been shrinking for over 15 years. By adopting an asset-light business model and introducing soft brands, the major hotel chains have been aggressively expanding their global networks. In the post-crisis environment independent hotels will not be able to compete with the major brands for the fledgling travel demand and will further rely on the OTAs for their distribution.

Web Traffic Shows Early Signs of Positive Trend Across All Regions

The latest edition of our bi-weekly Pulse Report published earlier today, providing hoteliers from around the world with a snapshot on key market metrics for April 6-19.

Providing an in-depth look at On the Books, New Bookings, Cancellations and Web Traffic data, the latest edition of the Report included the latest demand signals for Latin America as well as APAC, EMEA and North America.

The Duetto Team added the Latin American data to the report following suggestions from subscribers. LATAM has proved a vital new component to tracking the impact of COVID-19 on the hotel industry around the world.

"The data shows us LATAM still has a lot of confidence for the latter part of the year. There's a lot of bookings, especially for the latter part of the summer," Lofton remarks.

Pulse Report data for LATAM On The Books vs. STLY by Stay Month as of April 19th showed that travelers with bookings in Latin America continue to show a higher degree in confidence in stay dates from September 2020 onwards.

Weekly New Bookings vs. STLY by Stay Month for Latin America also showed a slightly positive year over year trend for bookings in 2021, with new bookings for stays between May and July.

New Reservations Provide Future Outlook

Also new to the Pulse Report this time is the addition of New Reservations data. This was added because the Pulse Report team wanted to be looking as much to the future as possible.

In APAC, the data for new bookings shows increased pace for Q2 2021. In EMEA a similar pattern can be seen, with an uplift in new reservations for May-July 2021. For North America, new bookings for 2020 continue to fall behind previous year figures, but new bookings for 2021 are exceeding pace.

SG Clean Quality Mark Extended to Tourism and Lifestyle Businesses as part of Nationwide Efforts to Uplift Sanitation and Hygiene

 In light of the on-going Coronavirus Disease (COVID-19) situation, Enterprise Singapore (ESG) and the Singapore Tourism Board (STB) have rolled out the SG Clean quality mark to the tourism and lifestyle sectors. Among the first to be certified are those along the popular Orchard Road shopping belt, which include food and retail businesses in malls such as Plaza Singapura and ION Orchard; Grand Hyatt Singapore; and the Singapore Visitor Centre 

 Establishments like Charles & Keith, Golden Village, Jean Yip Hub, Jumbo Seafood, McDonald’s and TungLok are on board SG Clean

Two other hotels outside of Orchard Road have also been certified – Village Hotel Sentosa and Shangri-La’s Rasa Sentosa Resort & Spa.

Grand Hyatt Singapore and several businesses at Plaza Singapura received their SG Clean quality mark from Mr Chee Hong Tat, Senior Minister of State for Trade and Industry, and Education – following a visit to the premises.

ESG and STB will encourage more than 37,000 businesses within the tourism and lifestyle sectors to sign up for the SG Clean certification programme.  

To be certified, businesses have to go through a seven-point checklist tailored to the requirements and operations in the various sectors

ESG and STB have appointed qualified, independent assessment organisations to certify that participating establishments have met these requirements, and continue to maintain these practices. Businesses assessed to have met the criteria will be awarded the SG Clean quality mark. Assessment and certification are complimentary for businesses.

For further details :

(Refer to Annex A: List of certified establishments to-date)

Accor and Bureau Veritas launch a label based on sanitary measures

Accor, a global leader in augmented hospitality, and Bureau Veritas, a world-leading provider in testing, inspection and certification, have joined forces to develop a label designed to certify that the appropriate safety standards and cleaning protocols have been achieved to allow businesses to reopen

The label will cover both accommodation and catering, and will set the sanitary standards applicable to all the Group's hotels as well as to other chains and independent hotels. The project was carried out in partnership with doctors and epidemiologists, and has been developed in collaboration with Accor owners and trade associations, such as UMIH, GNC, and GNI.

The project will be shared within Alliance France Tourisme as well as with the relevant ministries (French Ministries of Tourism, Health and Labor) so that they are actively involved in - and validate - the recommended standards. 

European customers will be able to check on a dedicated Bureau Veritas website, before they book their next stay whether any hotel or restaurant has been certified or not by Bureau Veritas.

Hospitality Industry United for “Buy One, Give One” Campaign to Jumpstart Travel, Support Hotels and Provide Thank You to Healthcare Workers

To help Jumpstart Leisure Travel, the hospitality industry has united to launch Buy One, Give One, a "vacay layaway" program designed to generate immediate revenue for hotels, while simultaneously providing a "thank you" to healthcare workers who have been tirelessly working on the front lines.

Available at BuyOneGiveOneStay.com through June 30, the initiative incentives consumers to purchase future travel now with special offers ranging from discounted stays to gift cards to loyalty points for redemption prior to travel.

In return, participating hospitality brands/hotels will donate room nights, gift cards, or loyalty points to organizations, including the American Nurses Association and NewYork-Presbyterian, among others of their choice, to distribute to medical professionals who can use them toward future leisure stays.

 MMGY Global, the largest integrated marketing company specializing in the travel, tourism, and hospitality industry, and the Hospitality Sales & Marketing Association International (HSMAI) partnered to launch the effort.

Hospitality has been one of the industries most impacted by the coronavirus pandemic with 70% of hotel employees laid off or furloughed and eight in 10 hotel rooms empty, according to data released by the American Hotel & Lodging Association (AHLA).

From the comfort of their homes, travelers can explore enticing offers from more than 30 participating hospitality brands and hotels and counting. They can also take comfort in knowing that their purchases will result in meaningful donations by the participants.

"In these unprecedented times, it is more important than ever for all of us to join together to fuel recovery," said Bob Gilbert, CHME, CHBA, President & CEO of HSMAI. "With Buy One, Give One, we offer a collective charitable response to the pandemic across the hospitality industry, providing immediate funds to hotels in addition to a much-deserved respite in the future for those who have put their lives on the line to care for the sick."

Coronavirus Pushes a Traditional Industry to Go Digital

 Kempinski Hotel Beijing Lufthansa Center innovates its food and beverage service to reach customers to combat the novel coronavirus restrictions. Updates to recent delivery services include a new delivery app addition to the restaurant's repertoire, alongside the advanced WeChat ordering options. The unveiled WeChat online menu allows customers to pre-order online and set up a pick-up time at the restaurants

The novel coronavirus pandemic of 2020 quickly brought the topics of public health and non-contact services into the public eye. 

Bilingual Ordering and Social Distancing

For the convenience of surrounding businesses, residences and embassies, a clear bilingual system created the newest WeChat ordering function. Guests can easily find Paulaner Bräuhaus's full Bavarian menu,

'Bilingual services are very important to Kempinski Hotel Beijing. We hope guests, both Chinese and foreign, can have a simple and easy-to-use platform to enjoy the services of the five-star hotel at such a time,' Hotel Managing Director Brice Péan explained. Continuing to describe the benefit to guests, he said, 'This system allows customers to take the food without having to wait after they arrive at the store, reducing contact and gatherings.'

Numerous Take-out Platforms and 100s of Five-star Food Delivery Services

Kempinski Hotel Beijing implemented more stringent safety standards, including mandatory temperature checks for all kitchen and restaurant employees; a requirement to present public health certificates in public areas ;air sanitisation in the dining area daily; strict ingredient regulations; and frequent disinfection of all equipment. 

Paulaner Bräuhaus's operating hours have been adjusted to 12:00 to 21:00. Kempi Deli's operating hours have also been adjusted and are now from 8:00 to 20:00.

 At the same time, we hope to explore how to reduce the number of plastic products to lessen the environmental impact caused by excessive packaging, as we have the opportunity to create sustainable development of this entire industry,' Brice Péan, the Hotel Managing Director

.

Hospitality Sector Should Prepare for an Extended Stay from COVID-19

"The impact to our industry is already more severe than anything we've seen before, including September 11th and the Great Recession of 2008 combined." A chilling statement from Chip Rogers, President of the American Hotel & Lodging Association (AHLA) on March 17—just as COVID-19 was starting to unleash its global fury.

Decimation

To understand the full scope, you need to look at the impact on the providers who support this $1.6 trillion industry. Many hotel properties that were running at 70% occupancy are now below 5%, and the industry is in danger of losing four million jobs along with $3.5 billion per week. With numbers like these, there's no "silver lining" and with all of the pain and uncertainty that remain, how can we realistically talk about a "new normal?"

Hospitality Company Impact

1. Liquidity - During times like these, cash is king. It's literally a lifeline. Public hotel companies are aggressively raising debt through note offerings to increase near-term liquidity. Hilton recently announced that it had pre-sold $1 billion in cash worth of loyalty points to American Express, a relatively inexpensive source of near-term liquidity for the company. Companies have slashed corporate staff anywhere from 15% to 50%. 

2. Technology - Properties and companies that were early adopters of technology will be better positioned to weather the COVID-19 storm. We're already seeing a preference toward mobile pay options versus cash. Imagine hotels staffed entirely by robots; this is already a common practice in Japan.

3. Higher Costs - There will increased expenditures on quality assurance and sanitation programs. And while hospitality companies will need to invest in masks, sanitizers, gloves and enhanced training, until demand returns to normal these costs probably can't be passed onto consumers

4. Spatial Changes - Have we witnessed the beginning of the end of the Las Vegas buffets? Communal has become a dirty word across all industries.

5. Planning for the Next One - At some point, hospitality companies will need to create or update their disaster planning/recovery guides

   Traveler Impact

   Deep Discounts - A traveler's dollar will certainly go farther, specifically in cities that have had coronavirus clusters. It's a simple issue of supply and demand.

   Government Involvement - Just like after 9/11, flyers had increased demands on identification. Similarly, we could see COVID-19 travel requirements such as antibody certificates; personal protective gear requirements; mandatory temperature taking upon entry of a restaurant, cruise ship, theme park, etc.

   Risk Aversion Isn't One Size Fits All - Let's face it, traveling in and around Boise isn't the same as traversing Boston.

   A Way Forward

   The knock on the big established chains was that they were slow to change and adapt to consumer preferences.

Optii Solutions Appoints Katherine Grass as Chief Executive Officer

Optii Solutions, the provider of the most advanced labor optimization solution for hotel housekeeping teams, announced the appointment of Katherine Grass as Chief Executive Officer as well as the creation of a Playbook designed to give hotels a head start in efficiently managing the challenges presented preparing properties for recovery in a post-COVID world.

 She has over 20 years in the IT and travel sectors. She joined Optii Solutions from their lead investor, Thayer Ventures, a travel-tech focused venture capital firm and has held senior-level positions with Amadeus IT Group and Amadeus Ventures.

The Playbook is a data-driven, lean operations guide discussing the universal challenges faced by each hotel and will propose strategies to overcome these challenges, turning operations into a lean and resilient machine.

"The Playbook is a guide to assist hoteliers with the monumental task ahead for reopening and getting back to being profitable," said Katherine Grass, CEO of Optii Solutions. 

Industry leaders agree that, once we come out of this crisis, our industry will need to be more nimble and creative across all departments. The Playbook outlines tips and strategies hoteliers can apply to their operations to overcome six fundamental challenges that lie ahead during these uncertain times.

HOSPA opens up educational courses to help furloughed hospitality colleagues

HOSPA, the Hospitality Professionals Association, has opened up its educational courses, welcoming a fresh intake of learners and waiving the usual twice annual registration process in a move that will enable furloughed colleagues to learn and enhance their hospitality careers during lockdown

Learners can only enrol on HOSPA courses in March and August

Course tutors, who deliver online learning, are ready to receive applicants with revised coursework timetables, while HOSPA, which usually requires course payments up front, is allowing those on furlough to pay in instalments.

HOSPA offers a variety of educational courses across finance and revenue management; courses which furnish participants with the relevant tools to excel in their hospitality careers

As part of enrolment, applicants get access to a wealth of online learning with over 5,000 titles in HOSPA's online journal entries, along with guides to various aspects of hospitality learning. The courses start from £820+VAT.

Jane Pendlebury, CEO of HOSPA, said: "Hospitality is going through an incredibly tough time at present, with many colleagues currently furloughed. Usually, with our HOSPA courses, applicants are juggling coursework with their day job.

A message from Sébastien Bazin, CEO Accor

Sébastien Bazin delivers a message of hope and solidarity to all the Group's employees, partners and owners despite the crisis, Accor is maintaining solid financials and is preparing for the rebound.

As the world is facing an unprecedented health crisis that is having massive and unique impacts on the tourism industry, the Group has just published its first-quarter 2020 revenue down 17% as reported - expected results due to the spread of the epidemic and the enforced lockdown.

Regional initiatives are multiplying to fight the epidemic and support employees in need, owners, government authorities, healthcare professionals and local communities

Accor is also positioning itself as a key actor in the hotel sector, in order to prepare for the rebound, with great energy.

The Group can rely on a robust balance sheet thanks to its recent transformation. This will enable the Group to better absorb the economic consequences of the COVID-19 crisis in the coming quarters.