Article Summary:

From the desks of the Hotel News Now editorial staff:

  • Hotel CEO speak out against racial inequality
  • Weekly hotel performance for US, Canada
  • Lobbyists call for shortening of UK two-meter rule
  • US passes 2 million COVID-19 cases
  • Scotland’s Macdonald Hotels hints job losses likely

Primary Category: 5 Things to Know

Secondary Categories: News

Hotel CEO speak out against racial inequality: In the wake of the death of George Floyd as a direct result of his arrest by police officers in Minneapolis, several hotel company CEOs have made statements reaffirming their firms’ commitment to equality and underlining the need for an end to racial injustice, writes Hotel News Now’s Danielle Hess.

Hilton President and CEO Chris Nassetta* stated on LinkedIn that “while racism, bigotry and violence have been societal challenges well before these events, today I feel a greater need to get Hilton back on the playing field to help address them.”

Salamander Hotels & Resorts Founder and CEO Sheila C. Johnson wrote on her Instagram page that “as a business woman, as an Africa American, but mostly, as a black wife and mother, I find the current state of our country—and I do not use this world lightly—terrifying. I call on all good Americans, but particular our wives, mothers and sisters, to stay strong … and rebuild the very same bridges others are trying to burn to the ground.”

Weekly hotel performance for U.S., Canada: U.S. hotel performance continues to climb back from the depths of the pandemic crisis, according to the latest data from HNN’s parent company STR.

While occupancy was down 45.3% year over year for the week ending 6 June, the absolute value of 39.3% continues an eight-week stretch of occupancy growth.

Average daily rate was down 35.9% year over year to $85.01, revenue per available room was down 65% to $33.43.

Data for the same week shows the Canadian hotel industry is still struggling with a lack of demand. Occupancy was down 70.3% year over year to 22.2%. ADR dropped 42.2% to 105.92 Canadian dollars ($78.47), and RevPAR was down 82.9% to CA$23.49 ($17.40)

Lobbyists call for shortening of U.K. two-meter rule: More voices from the United Kingdom hotel and hospitality industry, including principal lobbying organization UKHospitality, are asking for the U.K. government to ease its guidance on social distancing necessary to stop further transmission of COVID-19, the BBC reports.

According to lobbyists, hotels and hospitality firms fear the rule for at least two meters between guests and others will make no economic sense and cause further job losses and company bankruptcies. Several ruling Conservative Party members of Parliament also have joined the call, including former party leader Sir Iain Duncan Smith, who said “the hospitality sector simply can’t make a living at two meters.”

U.S. passes 2 million COVID-19 cases: According to John Hopkins University & Medicine, the U.S. has reached the dire mark of more than two million confirmed cases of COVID-19, as NPR reports that while “new coronavirus infections are rising in at least 20 states … restrictions on daily life continue to ease across the country.”

University researchers said at press time there have been 2,000,464 positive cases. The death tally in the U.S. is now more than 112,000, with NPR adding positive cases “have swelled recently in places like Texas, Arizona, Arkansas and California.”


Scotland’s Macdonald Hotels hints job losses likely: The Bathgate, Scotland-based firm Macdonald Hotels, which has 31 hotels in the U.K., might be forced to cut approximately 1,800 jobs, stating its current system is “unsustainable” and that there is “no realistic prospect of returning to normal trading in the near future,” the BBC reports.

The news comes after the Scottish government announced its “tourism businesses, including pubs, hotels and restaurants, (can) prepare to reopen on 15 July.”

Compiled by Terence Baker.

*Editor’s note: Hotel News Now is a division of STR, a CoStar Group company. Chris Nassetta serves on CoStar Group’s Board of Directors.

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Headline: 5 things to know: 11 June 2020

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Article Time: 10:26:00 AM