Khabar Magazine. Nov 2020.
The hotel industry, like restaurants, has been battered during the pandemic. How are South Asian-owned hotels dealing with the crisis? What changes have they made to reassure guests and employees? As travel slowly picks up, what’s the new normal going to be like at your next stay in a hotel?
Like most people, I started this new year with a list of resolutions and aspirations. One of them was to visit my hundredth country and all seven continents. For the past several years, I have been traveling internationally at least once or twice a month, crisscrossing the globe, and was scheduled to enter the travel centurion club by mid-2020. I traveled to Antarctica and Europe in the first couple of months of the year, but by mid-March, the future of travel started to look uncertain. Countries were closing borders, visas were getting suspended, and conferences and festivals started cancelling.
As with everyone in the travel industry, my life too has been greatly impacted by the pandemic. The stay-at-home order left me grounded for over two months, and virtual travel was just not satisfying, personally and professionally.
As soon as Georgia reopened businesses, I took my first overnight trip to Lookout Mountain, a small hilltop destination located at the border of Georgia and Tennessee. Staying at a hotel, with a looming infectious virus, was daunting at first. I debated whether it was safer to continue to stay at home or to go out and support the economy. Cabin fever had left me restless and after considerable research, I decided to venture out. What I learned was that the hospitality industry had quickly set new standards in cleanliness after consulting with CDC and other organizations.
At the River View Inn in Chattanooga, I had to wear a mask when entering the reception area, where a plexiglass divider separated me from the attendant. There were arrows on the sidewalks, and signage throughout the property, reminding guests to keep six feet distance from each other and to wear masks in public areas. The rooms had been sanitized and inn capacity was capped to about 60 percent. Sit-down breakfast service was suspended and replaced with fruit and granola bars to take away in the morning. The new experience was a bit strange, but it felt good to get away from the usual routine of cooking meals every day and attending back-to-back Zoom calls.
Since May, I have stayed at a number of bed-and-breakfasts inns, boutique hotels, and resorts around the U.S. All of them seem to be cleaner than ever, holding heightened standards to ensure safety of guests and employees. In Duck, a beach town on the Outer Banks in North Carolina, Sanderling Resort enforced touchless check-in and check-out with online forms and keys handed out in parking lots. A reassuring note hung on the door knob stating that no one had entered my room since it was sanitized. Remote controls and door knobs had been wiped down. Enough towels and toiletries were left in the room for the duration of my stay to avoid interaction with housekeepers. Other places, like the Marble Distillery Hotel in Colorado, did not utilize keys at all. They simply emailed me a door code to enter my room. I never had to speak to a staff member during my two-night stay. And at Home in The Tropics B&B in St. Thomas, a QR code guided me to neighborhood attractions and restaurants, instead of maps and brochures.
The impact of Covid-19 on the travel industry has been surmountable, despite the heavy blow. Hotels in particular have had to adjust their businesses overnight. Approximately 40-50 percent of the hotels in the United States are owned by South Asians, according to the Asian American Hotel Owners Association (AAHOA), a trade association that represents hotel owners. Hotels are categorized by ownership (chain, single owner), target markets (airport, extended stay, resorts), and by level of service and number of rooms.
Budget and value or economy hotels such as Motel 6, Comfort Inn, and Americas Best have the lowest room rates and offer good value for money. Mid-range and business hotels such as Marriott and Holiday Inns cater to families, business travelers, and affluent travelers. Brands such as Mandarin Oriental, Langham, and Ritz-Carlton fall into the category of Luxury Hotels. Generally, Asian Americans dominate the motel ownership in small towns.
Adapting to new standards
Because hotels are termed as an essential business, they did not close during the lockdown, yet maintained operations even without any guests.
Navid Kapadi, a partner at Atlanta-based Peach State Hospitality, owns three Choice Hotels franchises located near Atlanta airport. The mid-grade hotel brand caters to leisure travelers who are on road trips through the Southeast and are looking for a night to break their journey. When the shutdown was announced, he panicked. “It was very concerning as we didn’t know what to expect. We had never expected anything like this and didn’t have any guidance on how to deal with it. All of a sudden, cancellations started pouring in.
The first week was extremely tough!” says Kapadi who has been in the hotel business for about five years. His staff immediately sprang into action, partnering with Eco Lab to make sure all their cleaning products were up to date, deeply sanitizing every room, and cleaning the facilities more often. They rearranged the lobby to allow for social distancing, spaced breakfast tables six feet apart, installed plexiglass barriers and sanitizing stations, and put up signs stating only two people could enter the elevator at a time. Further, they implemented daily temperature checks and retrained all their employees.
Not all hotel segments experienced the same level of concern. “Our properties play in the monthly and weekly, long-term, affordable housing segment. Our occupancy has actually gone up during this time. During recession, people are looking for housing where rents are lower and utilities are included,” says Ali Jamal, author of the upcoming book Can-Do Real Estate and CEO of Stablegold Hospitality, which owns and operates seven locations in the Atlanta metro area and two in North Dakota. Jamal claims his top-line revenues during the crisis have been better than he had expected.
Like everyone else in the industry, Jamal did not know how much of an impact Covid-19 would have on the economy and the hotel business. But there’s always a segment of the population that depends on affordable housing, in a flexible format that hotels offer. This has led to a steady and consistent business for him, as well as for other hoteliers in this space. Still, Jamal felt the economic challenge of his customer base and worked with each one of them to offer discounted rates up to 50 percent and flexible payment options to ensure they had a roof over their heads.
Managing financial crisis
New safety measures are now required to reinforce confidence, but put a strain on the hotel’s resources even as revenues dwindle. “We have had to cut back expenses on planned upgrades and other investments, and redo our budgets for the next year,” says Kapadi. Not serving breakfast has reduced costs but hardly enough to offset the added expenses, while occupancy still remains low.
Sam Patel, who owns a Travelodge in Forsyth County, Georgia, and a Red Roof Inn in Richmond Hill, Georgia, also saw considerable impact on his business, but decided to take advantage of the Small Business Administration Economy Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP). “It allowed us to retain our staff, pay our mortgage, and keep operations going,” he says. Being a smaller hotel, Patel was able to reduce operation costs in the interim. He shrank employee hours, scaled back on ground maintenance, and turned off the lights and refrigerators in unused rooms to save on utilities. Patel also consulted with other hoteliers in the area and concluded, “We are sustaining with the help of government loans but are uncertain about the future. Perhaps we would need another stimulus package, or many of us will need to shut down permanently.”
Another major issue that hoteliers are facing during the pandemic is having enough staff return to work. Employees face the same health risks as the customers do, if not more. Being on the frontline of cleaning rooms after each customer, they have more chances of being exposed to the virus. Kapadi adds, “We still have a lot of work, but it’s been challenging, getting staff to return to work. Many of them prefer to receive unemployment, and are afraid for their health.”
Meanwhile, Jamal has not only been able to avoid furloughs, but has hired additional staff to meet demand at his extended stay properties. He also gave out full bonuses to all his managers regardless of their hitting targets.
The new normal
Travel has slowly resumed and many people are resorting to road trips and choosing destinations close to home. “This time of the year, we are typically at 80-100 percent capacity, but now we are at 40-45 percent,” says Kapadi, who has seen increased traffic on the highways in the past few weeks. He can’t predict when his business will return to normal, but is hoping to see more guidelines for the hotel industry.
Patel feels more skeptical. “Though road traffic has increased, people are choosing to skip staying overnight in Georgia, due to our recent spike in cases.” He believes that the state has earned a bad reputation for the way it is handling the virus, which is resulting in guests driving further to stay in neighboring Tennessee and South Carolina.
Across the nation, as vacationers book accommodations, they are not just price sensitive anymore. They are asking questions about what the hotels are doing to ensure health and safety. Hotels need to assure clients that their room is perfect. Each one is expected to observe the new norms that may include touchless check-ins, temperature checks of guests and employees, health screening, reduced room capacities, and extended cleaning procedures. Staff and guests are required to wear masks and limit interactions. Housekeeping, happy hours, and buffet breakfast have also been put on hold.
An uncertain future
There is much uncertainty in the travel space right now, and usual business travel is not likely to return for many months. Lack of a vaccine, increasing unemployment, and fluctuating virus cases are not good news for hoteliers. They believe that big chains that have larger operating costs are more exposed and are going to continue to face challenges, while smaller economy hotels may be able to sustain themselves longer. Major hotel operators Hilton Worldwide Holdings Inc., Hyatt Hotels Corp., and Marriott International Inc. have already laid off thousands of employees and have not seen a major uptick in bookings.
Dos and don’ts for your next hotel stay
If you decide to stay at a hotel during these times, make sure to check the city/state travel website to get latest updates on travel restrictions and safety measures. Call the hotel or check their website to see what procedures they have in place and how prepared their staff is. Ask basic questions about cleaning, social distancing, wearing masks, etc.
If you see something that you are not comfortable with, make sure to point it out to the manager so they can rectify it. Also, carry your own PPE (personal protection equipment) such as masks, hand sanitizers, and disinfecting wipes with you when you travel. It is a good idea to wipe down high-touch surfaces such as remote controls, air-conditioning switches, and door handles yourself. Lastly, don’t expect the same level of services and amenities as before. Many hotels have closed access to pools, spas and gyms, and are limiting room service, turndown service, late checkouts, or sit-down breakfasts. They too are anxious and worried while trying to survive, not knowing how bad it can get.
~ Written for and published by Khabar Magazine. All rights reserved. Pick up a copy of the November 2020 issue to read more.