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