Published on : Thursday, April 2, 2020
Many hotels and resorts around the world have closed, or significantly scaled back services due to the COVID-19 pandemic. That has left hundreds of employees in the hospitality industry at home on furlough.
The CEO of Vail Resorts said that he would not have to take this action. In a letter to employees posted on the company’s website Wednesday, CEO Rob Katz announced several measures to “navigate the financial challenges ahead,” that include furloughs for some employees and pay cuts for others.
This comes several weeks after Governor Jared Polis issued an executive order, temporarily suspending operations at ski resorts. They still remain closed, with no clear timeline to reopen. They will work hard to reopen as soon as practical, but much of this is now outside their control.
The changes outlined in the post Wednesday include: Furloughs for “nearly all” U.S., year-round hourly employees for at least one to two months. Employees currently enrolled in health care coverage will keep it six-month salary reductions for all U.S. salaried employees. Katz announced he would give up 100% of his salary for six months.
In the same post, Katz also announced changes to board member compensation, capital expenditures, and dividends to shareholders.
He have made decisions over the last few weeks that he never could have anticipated in my nearly 30 years working in the ski business. He recognize the impact of today’s decisions on you, and he do not take them lightly. He is humbled and grateful for the passion and dedication to each other.
In Downtown Denver, the Brown Palace Hotel and Spa is still open for business but working with a drastically reduced staff. General Manager Nick Moschetti said the hotel normally employs more than 300 people and is currently operating with 12.
Although guests are still allowed, the hotel has closed restaurants, spa services, tea services and gathering spaces. Moschetti said he hopes business returns to normal by summer.
Gaylord Rockies Resort & Convention Center announced a temporary closure on March 25. In Colorado Springs, The Broadmoor Hotel announced its closure beginning March 21, along with an anticipated reopening date for Memorial Day weekend. The Colorado Springs Gazette reports all 1,411 employees of the hotel have been placed on unpaid leave.