Marriott extends furlough to October 2020

Eloise Hanson Eloise Hanson Uploaded 28 May 2020

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US: Marriott International announced on Wednesday that it will extend its furlough and reduced workweek schedules to 2 October 2020, and expects a “significant number of above property position eliminations” later this year.

Due to the reduced demand and drop in RevPAR levels, Marriott is extending the furloughs that began in April throughout the summer period. In April, the reported downturn in RevPAR was around 90 per cent.

“The Covid-19 pandemic is having a more severe and sustained financial impact on Marriott’s business than 9/11 and the 2008 financial crisis combined,” said the company in a statement. “Today, Marriott informed its associates that the company will need to implement additional measures in light of the increasing likelihood that it will be some time before lodging demand and RevPAR levels recover.”

In addition, Marriott has announced a voluntary transition programme for its US associates. It allows employees to leave the company to pursue other opportunities, and a similar programme is expected to expand to other properties globally.

“Given the company’s expectations that prior levels of business will not return until beyond 2021, the company anticipates a significant number of above-property position elimination later this year,” the statement continued. “The company is not able to predict how many associates will be affected by these separations or any resulting charges or cost savings.”

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