Originally Posted by
CMK10
Hampton Inn Jekyll Island, GA:
Pretty weak especially as they have a full bar which is open and they sell to go food for lunch and dinner.
Does the hotel operate the bar or is it a tenant?
I agree with you it is pretty weak. However I could make it even cheaper. Instead of the orange (which probably costs 40-50 cents), insert a banana (costs no more than 20 cents). Instead of the name brand bottle of water, get the off brand one. Instead of the name brand Nutri Grain bar, get the off brand one. Not sure about that oat thing but I'm sure there would be a cheaper replacement.
Hilton needs to step in here and get some consistency to these breakfasts. If they can have a buying program for bathroom toiletries by hotel brand from Sysco or whoever, they can also get a streamlined thing going for prepackaged food for each brand to serve in a grab and go bag. That should also cut costs to the hotels to buy the stuff under Hilton's contract vs. what appears to be happening where some hotel staff is going to a local grocery store or Wal Mart or Costco and picking up random items to construct these breakfast bags.
Originally Posted by
Global Adventurer
I personally believe that many of these hotel chains are barely surviving. The truth will come by the years end. So, I'm not faulting them that much for now. I have numerous upcoming stays even over the holidays. I'm hoping for the best, but I think I'll be getting an orange and muffin too☹️
Look at the REIT who pulled its properties from IHG because IHG was not paying the REIT the contractually required fees. These hotel chains are definitely in trouble.
But that is not even the beginning of it for the individually owned hotels. Most of these individually owned hotels were developed with loans or took out loans to do brand required renovations and those loans come with various covenants regarding financial performance which are obviously not going to be met with this COVID situation. So the banks will be in a precarious position- waive the covenants (which is what a reasonable bank would do IF the hotel is at least somehow staying current on its payments... at the very least), or pull the loan and assume operations of the hotel until they can sell the hotel off to someone else?
With that said let's see what happens at the end of the year. Labor Day weekend seemed to be pretty successful for travel; 9/4 was the best day for US Commercial Air travel since mid March. Let's see how holiday travel does. There may just be enough recovery here to let these businesses eek by without being destroyed financially.