COVID-19 impact roundup: How Hyatt is demonstrating leadership
Hyatt Hotels is making reduced-rate rooms available to healthcare workers in the US. (Picture: Hyatt)
Despite occupancy rates lower than those during the 2008 financial crisis, Hyatt Hotels is taking steps to support staff and local communities.
Hotels the world over have seen their revenues plummet in light of COVID-19 and Hyatt Hotels is no exception.
However, even though the current situation is gloomy, the American hotel group is doing what it can to support stakeholders, staff and communities it operates in.
We find out how Hyatt is demonstrating leadership in this crisis.
COVID-19 impact on Hyatt
2020 started well and was supposed to be a good year. But as the coronavirus spread around the world, Hyatt was forced to correct the positive outlook it had for this year.
Currently, many of the company’s hotels around the world have temporarily closed or are operating with occupancy rates which are lower than those seen during the 2008/9 financial crisis.
Mark S. Hoplamazian, president and CEO, said in a recent news release, “We are confident in the resilience and capabilities of our teams to manage through the challenges our industry faces. We continue to care for our colleagues, guests, customers, hotel owners, and the communities in which our hotels operate that have been affected by this public health issue. Our thoughts remain with the individuals and communities affected across the world as the public health response to COVID-19 continues.”
Mitigation measures taken by Hyatt
To cut costs and ensure liquidity, difficult decisions have been taken. Staff at many properties have either been furloughed or now work reduced hours. Hyatt’s corporate teams in all regions and across all levels have taken pay and work reductions.
Both the group’s CEO and the chairman of the board have given up 100% of their salaries through May while the senior leadership teams have taken cuts of 50%.
The closure of certain properties, as well as very limited investments in the coming months, will further help the company reduce expenditures and ensure liquidity.
Supporting staff in hard times
To help employees who are in financial distress due to furloughs and work reductions, the Hyatt Care Fund is being set up. Initially, it will be seeded by the funds saved on senior leadership salaries.
“We are very proud of what our colleagues in the Hyatt family are doing to provide care for our guests, customers, hotel owners, and the communities in which our hotels operate, as the impact of COVID-19 continues to be felt in an increasing number of communities around the world. It is in these types of circumstances that our purpose – to care for people so they can be their best – has the greatest impact,” Mr Hoplamazian went on to say.
Supporting local communities and healthcare workers
Hyatt is offering reduced flat-rates for healthcare staff in many cities around the United States thus giving them the chance to stay closer to hospitals and avoid going home and risking their family’s health.
Many of the hotels which recently closed have donated their unused food supplies to their staff or local communities. Other properties gave cleaning supplies, sanitizers and shower caps (to be used for self-protection) to volunteers and healthcare workers.