COVID-19 Impact: Choice Hotels, Extended Stay America, Hilton
Articles published by Choice Hotels, Extended Stay America, and Hilton indicate that the hoteliers are putting in place measures that will help in reducing the impact of the COVID-19 crisis. In response to the outbreak, the hotel operators have prioritized the wellbeing of their customers, and also taking part in the initiatives that support healthcare professionals who are the frontline soldiers against the virus.
Below is a list of articles addressing how COVID-19 has impacted the companies and how they are mitigating the risks associated with the pandemic.
1. Choice Hotels Joins Serta “Stay Home, Send Beds” Initiative, Enabling Loyalty Members to Donate Points Towards Hospital Mattress Donations
- This press release by Choice Hotels outlines the efforts of the corporation (Choice Hotels International, Inc.) to team up with Serta, Inc. to provide bed donations through the “Stay Home, Send Beds” initiative. The aim of the combined effort is to address the shortage of mattresses in hospitals and medical facilities as a result of the COVID-19 outbreak.
2. Choice Hotels ASIA-PAC Supports Its Network As Franchisees Look To Innovative New Guest Experiences
- In an article published by the Business Franchise Australia, Choice Hotels Asia-Pacific announced several measures it has taken to support its franchisees during the COVID-19 pandemic. The key measures outlined include suspension of certain fees such as guest relations handling fees and reputation management fees; pausing of quality assurance reviews; providing guidance and outlining crisis preparedness best practices; and suspension of certain brand standards.
3. COVID-19 Impact Roundup: How Choice Hotels Is Responding To The Crisis
- This article discusses the impacts of COVID-19 on Choice Hotels as well as the mitigation measures taken by the corporation to address the pandemic. According to the article, most of the Choice Hotels’ properties in Europe have been shut down, and employees furloughed. The company announced that it is working closely with its operators and hotel owners to manage the challenges presented by COVID-19.
4. Choice Hotels International Provides COVID-19 Business Update
- This news release published by PRNewswire outlines the impacts of the COVID19 pandemic on Choice Hotels’ business. The company updated information on the virus impact on its balance sheet and liquidity and the current mitigation plans such as reducing the compensation of its executive members and reducing or eliminating non-essential expenditures. The release also provided an update on the company’s March performance and the measures taken to support its guests and franchisees.
5. Choice Hotels Pulls Outlook On Coronavirus Impact
- According to this article, Choice Hotels pulled its 2020 outlook on the impact of COVID-19. The company acknowledged that it is unable to precisely quantify the impacts of the virus, given the uncertainty of the crisis on the global hospitality industry.
EXTENDED STAY AMERICA
1. Extended Stay America Provides Guidance Update
- This article discusses the 2020 guidance update made by Extended Stay America, Inc. in light of the ongoing COVID-19 outbreak. Based on the company’s press release, its capital expenditure, Adjusted EBITDA, and RevPAR growth are expected to be lower than previously projected due to the pandemic.
2. Many Hotels Have Shut Down During the Coronavirus. How This Budget Chain Has Stayed Open
- According to this article, although the hotel industry is significantly hit by the ongoing COVID-19 pandemic, Extended Stay America is projected to “ride out the crisis” better than others. Analysts believe that the hotel chain will surprise investors as it may experience the smallest drop in earnings compared to its rivals.
3. Hoteliers open doors to help those fighting COVID-19
- This article acknowledges the efforts made by hoteliers to address the COVID-19 outbreak. According to the author, Extended Stay America, together with other hotels like Red Roof, Studio 6, and Motel 6, which are under the Hotel Engine, have discounted their rates for support personnel and healthcare professionals assisting in the fight against the virus. Extended Stay America has reduced its hotel rates and is offering an additional 15% discount for stays under 30 days.
4. Analysts Estimate Extended Stay America (STAY) to Report a Decline in Earnings: What to Look Out for
- This article outlines the projected drop in the overall earning of Extended Stay America based on different analyses. Zack Consensus Estimate, for instance, projects that the hotel operator’s revenues will drop by 3.7% to $267.32 million.
5. Blackstone and Starwood Capital Group secure stakes in Extended Stay America
- This news article discusses how Starwood Capital, a private-equity firm, and Blackstone have both taken a stake in Extended Stay America during the COVID-19 crisis. The company’s cash flow has dropped since the virus outbreak, and the partnerships would tide it over until Covid-19 recedes.
- This company statement by Extended Stay America’s CEO, Bruce Haase, outlines the efforts made by the hotel operator to meet customers' needs during the COVID-19 outbreak. The statement provides guidelines on how it is going to ensure every customer’s stay and its commitment to creating comfort.
1. Hilton and American Express to Donate Up to 1 Million Rooms To Frontline Medical Professionals During COVID-19 Crisis
- This article highlights Hilton’s announcement on its partnership with American Express to donate up to 1 million hotel room nights to medical professionals who are aiding in the fight against coronavirus.
- This article outlines how the Hilton corporation is taking action to protect its business and customers against the COVID-19 crisis. Some of the actions listed include the President and CEO of the company forgoing his salary, the executive committee taking a 50% pay cut during the crisis, and corporate team members have a 20% pay cut.
3. COVID-19 Response: How Hilton Hotels Are Supporting Our Communities Around the World
- Hilton has published an article that provides an overview of its efforts to support communities during the COVID-19 crisis. In the article, the hotel operator has outlined several blogs recognizing its worldwide efforts to ease community burden through food donations, inspiring messages, and in the distribution of medical supplies.
4. Hilton Partners with Leading Companies to Find Temporary Jobs for Displaced Hotel Team Members
- This article highlights the efforts made by Hilton to find temporary employment to its suspended employees in response to the COVID-19 outbreak. The company is collaborating with companies like Albertsons, CVS, Amazon, Walgreens, and Lidl.
5. 'A New Normal': Hilton Follows Marriott, Airbnb With Cleanliness Initiative Amid Coronavirus Pandemic
- According to this article, Hilton is partnering with Mayo Clinic and the company behind Lysol to launch the “Hilton CleanStay” program, which will ensure cleanliness and safety of visitors who stay at any Hilton property.