Just ask Hyatt Hotels officials today why it’s important to have brand and reputation insurance coverage for your hotel operations. The company’s recent move to fire its Boston-based housekeeping staff and opt to outsource work to a staffing firm outside of Massachusetts – based in Georgia, in fact – has earned Hyatt more publicity than it cares for. Worse, the company had the staff train their “vacation” replacements, but failed to mention that these were the people who would have their jobs once the 100 modestly paid staffers were let go. Ouch. Since the move was announced August 31^st, Web-based news articles are littered with reader comments citing “shame on them” types of admonishments; that’s press coverage no company wants.

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Hard to imagine how botox could become a risk to your hotel business, but if a spa operating on your hotel premises is selling botox treatments to your guests, beware. Most hoteliers don’t often connect the dots between their hotel business and the businesses of those vendors who have set up shop on hotel property. But botox, laser treatments, even nail salons doing business independent of your hotel business pose an exposure to lawsuits to your hotel.

With more amenities being heaped on guests and more hotels eager to partner with guest service providers in an attempt to woo said guests, the risks of such partnerships are often overlooked. Service providers such as spas, hair salons, personal trainers, medical services come with their own sets of risks, including the risk to the health and safety of your guests. Consider that if your hotel brochures or in-room promotions of either your establishment or that of the vendors is presented to your guests as additional services, you face liability for nearly any claim waged against the vendors.

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Defaults on loans are not limited to the residential housing market. In fact, the hotel industry is suffering the same bleeding as its Main Street counterparts. In San Francisco this past July, two famous high-end hotels defaulted on large-scale loans, a sign of the blight that is creeping into the hotel industry. High unemployment, low occupancy, and an aversion by the masses to paying more for a hotel stay than pre-recession are all contributing factors in this market.

For owners of the 97-year-old Renaissance Stanford Court hotel in Nob Hill, the $89 million loan was more than it could bear. Within a few short weeks, the Four Seasons Hotel on Market Street came up short in its repayment of a $90 million loan. To date, seven California-based hotels are in default.

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No one needs to tell you the changing nature of the hotel industry. Between government regulatory change and health and safety issues, it’s all you can do to stay ahead of an evolving, growing industry. So how do you think that hotel insurance policy package you bought is doing?

 If it’s been more than a few years since you purchased your hotel insurance package, it’s almost a given that something in your current business practices is not covered by that insurance package. But how can you know? (more…)

Flickr photo credit: Rain Rabbit

The Atlantic Ocean is kicking up a few tropical storms and one confirmed hurricane, not totally unexpected for mid-hurricane season. As the eastern seaboard dries off after Tropical Storm Claudette and braces for potential damage from Hurricane Bill, hotel operators outside the danger zone are once more faced with the onslaught of evacuees. According to the Texas Department of Public Safety, nearly 33 percent of all evacuees intend to ride out the storm in a hotel. Is your hotel one of those?

Public safety officials recommend that hotels serving as evacuation points meet the following requirements: 

• Hurricane evacuation shelters should be located outside of hurricane risk areas. 
• Shelters should be located away from floodplains. 
• Access roads to the shelter should be checked to make sure flooding won’t deter evacuees from reaching it. 
• The shelters should be wind-resistant. 
• Shelters must be located away from hazardous materials storage, manufacture, or use facilities.

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