Marriott International is beginning to furlough tens of
thousands of employees as it plans to increase its hotel closings around the
world in light of the coronavirus outbreak, The Wall Street Journal
reported.
The newspaper reported that the company began to shut down
some of its managed properties last week and will make additional closures this
week. Marriott has about 7,300 hotels worldwide.
"As travel restrictions and social distancing efforts
around the world become more widespread, we are experiencing significant drops
in demand at properties globally with an uncertain duration," a Marriott
spokesperson told BTN. "We are adjusting global operations
accordingly, which has meant either reduction in hours or a temporary leave for
many of our associates at our properties. Our associates will keep their health
benefits during this difficult period and continue to be eligible for company-paid
free short-term disability that provides income protection should they get
sick. We are working quickly to mitigate the impact to our business while also
focusing on assisting our associates, our guests and our owners. While the
ultimate impact is difficult to predict at this time given the fluidity of the
situation, we remain confident in our long-term prospects."
During its February earnings call, at a time when it
appeared the virus was still mainly affecting the Asia Pacific market, the
company said that about 90 of its 375 properties across Greater China had been
closed, and that February's revenue per available room in China had declined
nearly 90 per cent compared with the same period last year.
Marriott also has relaxed its cancellation policies for hotels
globally.