Industry Update
Opinion Article27 March 2020

Our employees are the most important assets to protect for the future of the hotel industry

By Howard Field, Founder & Member at HOSPA

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Here's a scenario that is not unique

  • An internationally branded hotel is in trouble because of the Coronavirus
  • It is on a site owned by its Local Authority, to which it pays a ground rent
  • It is in a property owned by a pension fund to which the Owner pays a building rent
  • It has furniture and equipment paid for on a finance lease from a finance company, as a cost to the Owner
  • The hotel has an operating overdraft from a local bank
  • The Owner is a franchisee of the international brand, paying royalties to the brand. The brand has no local presence
  • The hotel operation is managed by a third party management company that is paid a fee by the Owner
  • The Owner has employed an Asset Manager to oversee their investment
  • The General Manager is on the payroll of the management company, who charge the cost the hotel
  • The other core management and operational staff are on the payroll of the Owner
  • Certain departments are staffed by sub-contracting to third party service companies, and by zero-hour or temporary staff
  • The Owner is a foreign investor who never visits the operation of has any direct contact with the management or staff

With such a tangled web, it's a big challenge to all involved to make timely and practical decisions that are relevant to dealing with staff, guests, suppliers, financial sources and others in a situation such as the one we are experiencing now.

Howard Field

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