NY owners to pay US$500M to pandemic-hit workers
New York City hotel owners have to pay more than US$500 million to employees displaced by COVID-19, a victory for tens of thousands of unemployed workers and a fresh setback for cash-strapped property owners. The ruling represents the largest hotel-employee payout ever awarded in New York City, hotel owners and union representatives said. While the final amount of severance pay depends on a few factors, it is likely to be the biggest on record for any hotel-union.
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Half of Canadian hotels near closing, says industry leader
Half of Canada’s 8,000-plus hotels could go out of business soon without help. Speaking at the Tourism Industry Association of Canada’s virtual summit, Hotel Association of Canada President and CEO Susie Grynol said federal programs have helped hoteliers cope with COVID-19 but that a good deal more is needed. Grynol said Canadian hotels may carry the names of international chains, but that many more are owned by families running small to medium-sized businesses.
U.S. occupancy slips further
U.S. weekly hotel occupancy slipped further from previous weeks, according to the latest data from STR through November 14.
November 8-14 (percentage change from comparable week in 2019):
Occupancy: 43.2% (-32.7%)
ADR: US$90.58 (-28.6%)
RevPAR: US$39.11 (-52.0%)
After ranging between 48% and 50% occupancy from mid-July into late October, the past three weeks have produced levels of 44.4%, 44.1% and 43.2%. Aggregate data for the top 25 markets showed lower occupancy (39.7%) but higher ADR (US$96.31) than all other markets. Phoenix, Arizona (52.7%) was the only Top 25 Market to reach or surpass 50% occupancy. Markets with the lowest occupancy levels for the week included Oahu Island, Hawaii (24.0%), and Chicago (29.3%).
Booking.com’s cleanliness score
Booking.com is launching a new required “Minimum Cleanliness Score Commitment” aimed at guaranteeing cleanliness in its short-term rental listings. The phased initiative will require rental managers and homeowners to maintain a score of 6 out of 10 in order to remain on the platform, and if they don’t, they will be put on a warning list. Once on the warning list, rental providers will have six months to give guests a better cleanliness experience and earn better reviews that raise the cleanliness score to a 6 or higher. If a rental manager/owner will not commit to improving their cleanliness score, Booking.com will remove the property from its site.