From the desks of the Hotel News Now editorial staff:
- COVID-19 sees many S&P 500 firms renew guidance
- F&B hotel outlets require new, creative thinking
- Renewed calls for hotel terrace safety after death
- Dalata confirms 'significant financial headroom'
- Florida breaks grim US COVID-19 record
COVID-19 sees many S&P 500 firms renew guidance: The COVID-19 pandemic has resulted in more than 180 firms listed on the S&P 500 submitting renewed guidance on their earnings, resulting in the “widest dispersion in earnings estimates among analysts since at least 2007,” according to The Wall Street Journal.
The newspaper said corporate earnings among companies in the S&P 500 are projected to have fallen approximately 45% in the second quarter in year-over-year terms. But despite the worry, the stock market index has “surged 42% from its March low thanks to high levels of stimulus from the Federal Reserve and Congress … (and) although the rally has slowed over the past month, the index is off just 1.4% in 2020.”
F&B hotel outlets require new, creative thinking: Reopening hotel F&B outlets is not just a question of welcoming back diners but a complex one of balancing profitability with hygiene and safety, writes Hotel News Now contributor Laura Koss-Feder. Things will not all look the same when diners—those from the hotel and also locals—come back.
Ghee Alexander, SVP of operations for Prism Hotels & Resorts, said because his firm’s restaurants have spaced out tables and chairs , the lack of sit-down diners is being offset by to-go orders. Hyatt Hotels Corporation is among the hotel firms adopting technology to minimize contact, with such initiatives as QR codes to allow guests to explore restaurant menus from their own mobile devices.
Renewed calls for hotel terrace safety after death: New calls have been made to make hotel terraces safer after a British man on vacation in Marbella, Spain, died after falling off his hotel room terrace over the weekend. The man struck a Spanish man on the terrace below, which resulted in his death, too, according to The Independent.
According to local police, the man fell from a seventh-floor balcony of the Meliá Don Pepe Hotel, operated by Spanish chain Meliá Hotels & Resorts, in the early hours of 11 July.
Dalata confirms “significant financial headroom”: Dalata Hotel Group, the largest hotel operator in the Republic of Ireland, has amended its debt facilities to offset the impact from the COVID-19 pandemic as it gets set to reopen all of its 44 hotels, according to The Irish Times. Executives said the company’s “previous covenants comprising net debt to earnings before interest, taxes, depreciation, and amortisation and interest cover will not be tested again until June 2022.”
The Dublin-based firm has “significant financial headroom. At the end of June 2020, the company had cash resources of €103 million ($116 million) and further undrawn committed debt facilities of €72 million ($81 million). The undrawn committed debt facilities have increased to €111 million ($125 million) as a result of the increase in the revolving credit facility.”
Florida breaks grim U.S. COVID-19 record: Florida has broken the record previously held by New York as the U.S. state to post the highest number of positive COVID-19 instances in a single 24-hour period, according to The New York Times. Florida recorded 15,300 new coronavirus cases on Sunday, a number that eclipsed the previous one-day high of 12,274 set in New York on 4 April.
Compiled by Terence Baker.