Several of NH Hotels’ properties have been medicalised. (Photo: NH Collection Gran Hotel Calderón)

Government restrictions on hotel operations have led to the closure of 90% of the NH Hotels Group’s properties in Spain and Italy and about 50% in other European markets.

The COVID-19 outbreak has had a devastating impact on the hospitality industry worldwide.

Despite revenue drops and temporary closures, companies like NH Hotels are stepping up to support their communities.

We find out how NH has been impacted and which role the group is playing in making this situation more bearable.

COVID-19 impact on NH Hotels

Following the spread of COVID-19, NH Hotel experienced a radical drop in demand and occupancy at its hotels worldwide. Government restrictions on hotel operations have led to the closure of 90% of the group’s hotels in Spain and Italy and about 50% in other European markets.

Mitigation measures undertaken by NH Hotels

To minimise the impact this situation has on NH Hotels, the group has taken steps to reduce costs by drastically cutting back on non-priority expenses. This included suspending all team travel, putting training and consulting initiatives on standby and reducing marketing expenses.

Improved payment terms have also been negotiated with hotel owners and suppliers. On top of this, board members and the group’s management committee have foregone 50% of the annual compensation for four months from March 1, 2020.

“We trust that the initiatives undertaken will help mitigate the impact during this temporary situation, after which we expect a significant recovery in demand,” Ramón Aragonés, CEO of NH Hotel Group, said in a recent media release.

Supporting local communities and the healthcare system

With many hospitals at capacity in Spain, NH collaborated with local authorities to medicalise some properties and provide the much-needed extra hospital beds. The first such project was the NH Hotel Parla in Madrid which is near one of the city’s leading hospitals and will now welcome patients recovering from COVID-19. More such conversions will follow soon.

On top of this, some NH hotels are operating as on-call hotels. They are ready to host guests who are forced to travel or stay away from homes such as healthcare workers and other essential personnel.

NH also worked with local charities to distribute the food stored at all the hotels which have had to close their doors.