So, this is bad. And it’s going to get worse. The Spanish hotels have all been closed and there are rumours galore about London.
I have heard the current situation compared to 9/11 many times. In an interview with Hotels magazine Tim Hansing CEO of Red Planet hotels has said it is 9/11 and Lehman Brothers combined, and he knows better than many of us in the UK. A Bangkok based company, Red Planet operates 31 hotels, totalling nearly 5,000 bedrooms in the Far East. He has lived through this crisis and is coming out the other side. He has some harsh realities to share:
· You cannot be prepared enough
· Single digit occupancy will be the norm
· Your hotels aren’t going to make any money
· Sort out your debt provision with your bank
· Reduce your staff costs now
On the positive side, his opinion is that the UK response is good, but he suspects the EU will have bigger problems and he suggests the US is probably the least prepared in the world, both medically and economically.
Our partners at UKHospitality are focussing on encouraging the Government to:<