Marriott: an audit points to the weakness of the PSE of the Westin hotel

By Le Figaro with AFP

Posted on 04/05/2021 at 15:59The job protection plan of the Westin Paris Vendôme, a prestigious hotel in the Marriott galaxy, is quite weak for the 168 employees threatened since it will cost " less than 10% " of the savings it will make, according to a audit addressed to the CSE that AFP obtained on Tuesday.

" The cost of the PSE would represent only a small part – less than 10% – of the value of the savings made ”, point the finger at the accountants of Adeco Expertise in a report of March 31 addressed to the social and economic committee. In the fall, a project of collective conventional rupture which did not succeed thus provided for individual severance allowances on average almost doubled compared to those of the PSE.The accountants calculated that the PSE would cost the group 7.34 million euros and would then make it possible to reduce operational costs by 6 million euros per year from 2022, thus causing over the duration of the investment a " value of savings generated of around 90 million euros ”.

The hotel, administered by the Marriott group and closed since November 18, employs 367 people and has 428 rooms. Since October 14, 2018, it has been jointly owned by the British investment fund Henderson Park and Dubai Holding.

The signing of a " mandate for the sale of the building " not excluded

The auditors ensure that its situation before the crisis linked to Covid-19 was good since the new owners generated a gross operating surplus of 12.4 million euros from October 15, 2018 to March 31, 2020. They do not, however, elude not the current economic difficulties since this economic indicator fell into the red (-8.5 M EUR) over the last nine months of 2020.

If the owners, forced to refinance a loan of 300 million euros, do not succeed before June 30, 2021, " several options are considered ", continue the experts who do not exclude the signing of a " mandate of sale of the building ”. The auditors, who state that they have not succeeded in obtaining all the accounting documents requested, also note that " the relationship with the two shareholders " does not seem " as clear " as at the time of the takeover.

They also ensure that the projections of the management, which does not wish to comment, are " disconnected " from those transmitted to the banking pool during the takeover and also, " which is more problematic ", from those retained during a renegotiation. funding in the fall. In the "oral ", the leaders however showed a certain optimism while acknowledging that the alternative to the PSE envisaged by Henderson Park went through a " closing of the hotel (judicial redress...) ", write Accountants

They also deplore that the management refuses to study any alternative scenario proposed by the staff representatives and “ did not activate all the government mechanisms ” and state aid at the height of the health crisis. To justify the measures in progress, the Westin relies on an absence of recovery in activity before 2024. This pessimistic " hypothesis " is out of step with reference sector studies as well as that " preferred by the franchisor Marriott ", notes Adeco Expertise.

Since I did not know what was that PSE, I looked it up:

I don't think they meant Postal Stationary Envelope or Porn Star Experience, so I believe they used the acronym for:

https://www.pse.com/en/business-ince...ograms/lodging

Last edited by UASPG; Nov 25, 2022 at 6:15 pm

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