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.

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.

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.

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.

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.

Four Seasons Hotel Doha Unveils Complete Redesign by Pierre-Yves Rochon

Four Seasons Hotel Doha has unveiled the details of its complete interior design overhaul, courtesy of award winning and world-renowned interior designer, Pierre-Yves Rochon (PYR).

Within this urban sanctuary, a refreshed colour scheme, including a rich spectrum of blues and beige in the guest rooms, evoke the earth, sprawling skies and Gulf views of Doha, while verdant colours and patterns in the new Tea Lounge pay homage to the splendours of nature.  The redesign continues to establish an elevated sense of place and time through a blend of classical and contemporary elements, and touches of Middle Eastern influences from the region, visible through the opulent and colourful chandeliers as well as the ornate furniture detailing. Qatari artwork from the owner’s original collection has been kept on the Hotel walls while nearly all the curtains have been revamped using a damask pattern

Lobby and Dining Outlets: The Beauty of Nature

The renovation of the Hotel strikes a harmony between the world of man and the beauty of nature that is reflective of the city itself. PYR was inspired by the unique landscape of Doha and this is evident through the colour scheme of the Hotel’s public areas and dining outlets. The feeling of the outdoors blends into the interiors with the creation of open-plan space and expansive glass windows.

The Lobby has been enhanced with a grandiose door reminiscent of grande dame entrances, and the Lobby has been redesigned as an open-plan space, allowing light to flood through the foyer as well as boasting views of the Arabian Gulf. A hand-blown glass chandelier, alongside an array of handmade and bespoke Italian furnishings, adorns the Lobby’s ceiling while also creating a magnificent focal point in the space.

Guest Rooms and Suites: Reflecting Sky, Sea and Sand

As a dynamic cultural destination with a thriving cosmopolitan district, Doha has direct access to a beach and beautiful blue sea. The redesigned rooms follow a soothing spectrum of blues and beiges reflecting the colours of the sky, sea, sand and earth. PYR aimed to evoke a feeling of timelessness while also creating an atmosphere in the rooms that is welcoming, uplifting, peaceful and comfortable for guests, with a powerful sense of place.

All the rooms and suites are furnished with discreetly integrated and energy efficient technologies to enhance the guest experience and bring a new dimension of modernity to the Hotel. All accommodations now feature automated curtains and lighting systems as well as temperature management preservation technology within the newly installed windows.

So Long, Minibar: How the Coronavirus Will Change Hotel Stays - NBC

A hotel that doesn't include a breakfast buffet and minibars would have been inconceivable to many Americans three months ago. But coronavirus has changed all that.

Hotel experts predict that the pandemic will drastically alter hotel stays in coming months, prompting many properties to embrace a host of new practices, up to and including temperature checks upon guests' arrivals.

The Four Seasons' guinea pig journey began last month, when H. Ty Warner, the property's owner, said he would open his hotel's doors to medical professionals working on the COVID-19 battlefront. The announcement set into motion a series of moves that have overhauled the hotel's standard operating procedure.

"We now have almost no touch points in the entire hotel, which is completely against a hotel's nature of being hands-on and kind," Tauscher said. "We used to be known for the human touch — but now we're all about no touch at all."

Check-ins and check-outs are performed virtually, with no human-to-human contact. Elevator rides are limited to one guest per car. Room service has been discontinued, and the hotel's restaurant, bar and complimentary coffee station are closed indefinitely.

The hotel's new dining option: pre-made boxed meals, available in an industrial refrigerator in the lobby.

48% of Americans Canceled Summer Travel Due to Coronavirus Concerns

Uncertainty surrounding the coronavirus pandemic has caused nearly half (48%) of Americans to cancel their summer travel plans for this year leading to more distress for the travel industry

Here's what our survey found:

• 46% of those who had upcoming travel plans lost money on nonrefundable deposits and cancellation fees, averaging $854.30 per person. Most of the lost costs came from airline tickets (59%) and hotel rooms (44%).

• The coronavirus pandemic is changing consumers' views about travel. Forty-three percent feel more negatively about the industry as a whole, and many will change their behavior as a result. For example, 55% said they're less likely to take a cruise once the pandemic is over, and 52% are more fearful of overseas travel.

• 1 in 4 Americans are planning a celebratory trip once the threat of the coronavirus disappears, especially millennials, Gen Xers, parents of children under 18 and six-figure earners.

• 40% of consumers said they're more likely to purchase travel insurance for future trips due to the coronavirus. However, 18% said the health crisis made them less likely to consider insuring their future trips.

Here's how hotels are redefining the tea experience for their guests while adding to their revenues

The entire process of growing, hand-picking of leaves, careful sorting and harvesting is fascinating and a premium-grade cup of tea commands a fitting price

Tea is not just therapeutic, but great to taste, besides being zero calories.” The rise and rise of gourmet tea Hotels serving teas beyond the regular Earl Grey and Darjeeling have helped popularise gourmet teas. Cafes and restaurants in hotels now serve single estate teas and unique blends

The making of a gourmet tea

Brewing a good cup of chai is an art and everything lies in how well it is balanced. Bala Sarda, Founder & CEO, Vahdam Teas believes gourmet tea is much like fine wines

At the Emperor Lounge, The Taj Mahal Hotel - Mansingh Road, 26 tea varieties are served, from Panch Dhatu Tea to Rooibos Apple

“A good cup of tea should be brewed at the right temperature, served in beautiful teacups from a stunning teapot, and feel fresh to the palette.”

As wellness finds its way to the centrestage of people’s lives, particularly after the COVID-19 scare, tea, with its various health benefits, will find increased acceptance.

The hotel tea experience 

At Port Muziris, Kochi, A Tribute Hotel by Marriott, guests are treated to an unusual tea tasting session at Kettle, the tea lounge. The cellar holds several varieties of teas inspired by Muziris’ spices and floral heritage. Jasmine, a common flower around these parts, lends itself to a delicate tea. Hibiscus-imbued tea leaves, a green variant flecked with saffron, the not-to-be-missed blue tea made by infusing tea leaves with the butterfly blue pea flower, and lavender-infused teas are part of the extensive cellar.

The cellar at Port Muziris, Kochi, A Tribute Hotel by Marriott, holds several varieties of teas inspired by Muziris’ spices and floral heritage.

With Mister Chai, we went all out to ensure that the typical chai time is a far more luxurious experience.” Among its offerings is Kali Mirch Chai, served with the Colaba Fish Fry Sandwich. ITC Maurya's rooftop Pan-Asian restaurant - Tian, asked Anamika Singh of Anandini Tea to work with its chef de cuisine to put together a tea-paired menu. The hotel now has a regular teatime service delivered at the room by designated butlers, exclusively for those who check-in at the women-only Eva Floor. For its executive floor guests, it has a dedicated tea lounge named Samaya, where the house blends are particularly popular.

The Lounge & Terrace on the lobby level of Four Seasons, Bangalore introduced the rarefied experience of loungy, relaxed afternoon teas to Bengaluru. In-house tea sommelier Mousumi Sharma has put together blends such as Apple Cinnamon Dust, Wild Berry Tales, Chocolate Mint and Orange Blossom, along with the classic

The art of pairing

Nair believes that each tea has its defined list of food accompaniments. High-Tea in Britain is said to be an extravagant and lavish affair,  accompanied by garden sandwiches,  scones, tarts, pies and cake. The rise and rise of High-Tea show how widely appreciated and accepted this mid-evening meal is.

The art of pairing the right food with the right cup of tea requires the sommelier to have some practice and a well-defined, sensitive palette

They  are best paired with very light food  such as white fish like sea bass or mild cheeses and desserts. Pakoras or a hot plate of vegetarian fritters go incredibly well with a piping cup of spiced chai, according to Samuel Massey, Director of Food &Beverage,Vivanta New Delhi, Dwarka.

Ranjit Batra, President – Hospitality, Panchshil Realty pens his view on the emerging new order in hospitality

The hotel industry will see a paradigm shift in the post-COVID-19 world. We will soon be referring to it in terms of BC and AC — Before COVID and After COVID. A lot of people compare the resilience of the hotel industry during the SARS epidemic and the 2018 financial crisis, and it eventually got back after a lag of a couple of years.

Most of them believe — taking cues from the fact that almost 85% of hotels in China have opened now — that it will see a V-shaped recovery. I think that is a pipe dream. SARS was an epidemic and affected only 26 countries.

In India, the entire country was placed under lockdown at a snap of the finger. This will have a significant impact on all the key stakeholders — owners, operators and customers. There will be some short-term impact and some long-term structural changes.

HVS India estimates hotel revenues in India to decline by anywhere between $8.5billion and $10 billion in 2020, not to mention the job losses. Let us take the impact on different stakeholders.

THE OWNERS

Indian owners will be staring at a loss for 2020, with a glimmer of hope that 2021 at least sees them break even. Taking a cue from HVS estimate of revenue loss and assuming average NOP margins of 25% to 30%, the owners would be staring at a loss of NOP of almost $2.5 billion to $ 3 billion. The owners will also have to bear the opening cost, once the hotels are ready to open after the lockdown.

THE OPERATORS

Operators have long maintained that their interest is aligned to that of owners as their fees are tied to revenues and net profits. However, it will be interesting to see whether the operators step up to the plate and ease the financial burden of the owners, especially when most of the owners are at their wit's end. The test of a relationship is always in hard times only.

It will be interesting to see how the relationship between the operators and their employees will pan out, with some operators choosing to seek pay-cuts from their employees, while some choosing to stand by them, making sure there are no pay-cuts and insisting that owners toe the line

THE CUSTOMERS

The increase in a web-based meeting on the likes of Zoom and CISCO WebEx, coupled with the shift towards work-from-home, will lead to business travel being curtailed to a large extent in the near future. Hotels, mainly dependent on business travellers, will require significant time before their occupancies see some traction. Usually, domestic leisure destinations should rebound first, with domestic travel restrictions being eased first.

THE WAY FORWARD

The future will belong to the owners with a stronger balance sheet and operators who stand by the owners. The customers will vote with their feet for hotels that they feel safe in and care about the environment.

Hilton closes 1,000 hotels, experiences 56% decline in revenue per room resulting from coronavirus

Hilton Hotels' preliminary systemwide first-quarter estimate of revenue per available room showed a 56% to 58% decline for March, according to the company's filing with the U.S. Securities and Exchange Commission

For the company's hotels in Europe, the Middle East and Africa, revenue per room is down 62% to 64% for March, which is slightly worse than Hilton properties in North and South America, which are down 54% to 56%.

These numbers are all better than the hotel's revenue per room in the Asia/Pacific region, which declined 74% to 76% in March.

As of April 14, 1,000 Hilton Hotels have suspended operations, which accounts for 16% of the chain's total global properties.

Marriott hotels also expect to report a decline of at least 23% in revenue per room for the first quarter. 

About 25% of Marriott's 7,300 hotels around the world are temporarily closed as a result of coronavirus travel fallout, according to a business update from the company

Hotel occupancy, average daily rate and revenue per available room were down significantly year-over-year for the week of April 5-11, according to a report from STR, a firm that analyzes hospitality industry data. 

More than 15,000 hotels signed up for a new American Hotel and Lodging Association (AHLA) initiative called "Hospitality for Hope," which matches hotels with government agencies in need, offering temporary housing for emergency and health care workers amid the pandemic.

Hotels may be in a position to offer rooms near a hospital they have a relationship with. When relatives of sick patients come to an area, hotels reach out to hospital leadership to offer a discounted rate.

How Each Hotel Department Can Start Preparing for A “New Normal” Re-opening

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-draw your floor plan so that there is a minimum of 6 feet between tables.

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

·         If your credit card scanner does not accept contactless cards, get one that does.

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.

·         If there are occupancy limitations, you may be sold-out or close-to-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

Marketing/Sales

• 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.

• Divide your Sales contact list by group size. Large groups may not be able to commit to events for a while because of logistics, but small groups are very manageable.

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.

Accor to reduce pay, furlough 75% of global head office teams

 Accor reviewed its recurring investment plan for 2020, resulting in a €60m reduction in capital expenditure. The company is further streamlining all other costs, such as sales, marketing and IT, in line with lower systemwide revenues.

Given the current situation, Accor is reducing schedules and/or furloughing 75 percent of its global head office teams for Q2, as well as implementing a travel ban and a hiring freeze. These actions, it estimated, will result in a minimum €60 million reduction in general and administrative expenses for 2020 to mitigate the COVID-19 pandemic’s impact on business.

Accor said it currently has more than €2.5 billion in cash on hand and an undrawn revolving credit facility of €1.2 billion.

Accor is also withdrawing its proposal for a 2019 dividend payment of around €280 million. It decided to allocate 25 percent of the planned dividend to the launch of the ALL Heartist Fund, which will assist:

• The group’s 300,000 employees, pledging to pay for the COVID-19-related hospital expenses of those who do not have social security or medical insurance

• On a case-by-case basis, furloughed employees “suffering great financial distress”

• On a case-by-case basis, individual partners facing financial difficulty

• Health-care professionals and nonprofit organizations

  Accor board members have collectively decided to reduce their attendance fees by 20 percent to the benefit of this fund. Additionally, Chairman/CEO Sebastien Bazin will forgo 25 percent of his compensation during the crisis with the cash equivalent to also be contributed to the fund.

Best Practices for Hotel Management Company CROs Responding to COVID-19 - By Kaitlin Dunn, Writer, Hospitality Sales and Marketing Association International (HSMAI)

HSMAI hosted a Hotel Management Company (HMC) Chief Revenue Officer Virtual Roundtable on March 25 that focused on the impact that COVID-19 is having on hotel revenue optimization. In addition to discussing key indicators they are using to track how the hospitality industry is doing, HMC CRO participants shared their best practices, lessons learned, and ideas for preparing to accelerate as quickly as possible. Here are five of their suggestions, presented in their own words:

1) EXPLORE NEW STAFFING MODELS:

“We’re lucky enough to still have 90 percent of our corporate team, but completely redeployed our team into a secure division, a support division, and a succeed division. Succeed is focused on ramping back up — procedures, staffing, strategy plans, markets to proceed with, staffing messaging, communicating with properties. It’s been our main focus.”

2) WORK ACROSS MARKETS:

“We have been focused on a solid post-COVID plan, taking as much information across markets as we can to build that. We’re also synergizing our efforts across markets and sharing knowledge across markets. We’ve been heavily focused on our weekly forecast across all markets, so we’ve come up with a market-level focus for each market as well. We are also gathering a lot of digital information and consolidating it on a common forum.”

3) RECOGNIZE YOUR TEAM MEMBERS’ WORK:

“It’s been exciting to see my team in the field step up. They’ve been sharing what trends they’re seeing, leads that come in. We’re trying to focus on the good things we’re seeing

“We had to lay off a lot of employees last week, but those who have remained showed great compassion and empathy toward those who were furloughed. They’re all having to learn different brands that they never thought they would have to know three weeks ago. This is a great time for cross-training, and they are willing and open to learning.”

4) FOCUS ON RECOVERY:

“Anything that we can put together that’s hopeful or positive looking forward is more important than ever and is better received by employees. I look forward to putting that together for each property.”

“We’re focusing on when we are going to reopen and what happens then, instead of focusing on right now when we’re closed. We’re cross-training our revenue team with other departments who can’t work remotely. We’re also making sure we’re educating teams that discounting isn’t the best way to go.”

Marriott International Lights Up Across Asia Pacific To Spark Hope

Hong Kong -- Marriott International across Asia Pacific will light up its properties to send a positive message, offering a ray of hope to the communities they are in for locals and travellers alike. The "Light for Hope" initiative looks to spread positivity amidst the challenging times the world is currently facing.

 Over 270 hotels across various cities and regions, from Seoul, Tokyo, Shanghai, Hong Kong, Bangkok, Kuala Lumpur, Saigon, Jakarta, Maldives, Mumbai and many more have lit up their hotel rooms to the symbol of a smiley face, as seen from the façade of the hotel. The symbol was chosen to project a happy demeanour radiating positivity, with hopes that it brings a smile to the faces of everyone who sees it.

"In times of uncertainty one thing remains certain - we are in this together, and we will come out stronger", said Craig S.

Putting people first is at core of Marriott International. Hotels across Asia-Pacific have been going above and beyond to demonstrate the extraordinary collective power of people to help others

In these challenging and unprecedented times, associates from hotels across Asia Pacific have volunteered over 40,000 hours to serve their communities

Throughout April, guests and travellers can view the "Light for Hope" initiative at select Marriott International hotels across Asia Pacific.

Candy Marth has been appointed General Manager at IntercityHotel Rostock

43-year old Candy Marth is an experienced manager who has emerged from Deutsche Hospitality's own ranks. Candy Marth took over the reins at the 174-room IntercityHotel Rostock on the Baltic Coast with effect from 1 April.

Candy Marth has worked for the hotel group for 20 years. During this period, she has fulfilled various roles in the fields of management assistance and human resources as well as being Head of Events at the Intercity Hotel Stralsund.

Ms. Marth replaces Katrin Schissler as General Manager of the IntercityHotel Rostock.

Steven Drewery Named Executive Assistant Manager for the Pan Pacific London Hotel

Pan Pacific London announced the appointment of Steven Drewery as Executive Assistant Manager for Pan Pacific Hotels Group's first London property, opening in Autumn 2020.

Steven joins from The Biltmore Mayfair, where he was an integral part of the pre-opening and operational activity for the first London outpost of Hilton's most upmarket brand, LXR Hotels & Resorts.

In the new Executive Assistant Manager position, he will support Anne Golden, General Manager, on strategic decision making in addition to overseeing all Pan Pacific London's food and beverage operations. A highly established professional within the industry, Steven has an exemplary background in luxury hotel management and F&B operations, which includes positions at JW Marriott Grosvenor House; Fairmont Bab Al Bahr; Giorgio Armani, Ritz-Carlton and Conrad in Tokyo; Swissotel Singapore; and Peninsula Hong Kong.

Set to open its doors in Autumn 2020, Pan Pacific London will be taking reservations from Spring 2020. Located in a mixed-use development at One Bishopsgate Plaza, the City's new landmark tower, the hotel is currently under construction and will provide a new hospitality offering to The City of London. 

Lodging Partners Announces Sale of Residence Inn Durango

Lodging Partners, LLC, a member of Hotel Brokers International, announced the 66-guestroom Residence Inn located in Durango has sold to a regional owner/operator of premium-branded select-service hotels.

Lodging Partners along with HREC Investment Advisors represented the seller on this transaction. The marketing and negotiations were led by Ford Barton of Lodging Partners and Jeffrey Duni at HREC Investment Advisors.

Durango is considered to be an authentic Colorado town with a rich history and an endless supply of recreational activities, making it an exceptional tourist destination with diversified demand drivers. 

 The Hotel recently completed a major renovation of all guest rooms and public areas. The Hotel is in great physical condition and is well-positioned to capitalize on the market’s continued economic growth and expanding leisure demand.

"This is the second Marriott property that Lodging Partners has represented for the seller, and we were pleased to assist them in reaching their goals and objectives," said Ford Barton, Principal of Lodging Partners.