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April 2020's Converge Newsletter
When to Reopen Your Hotel: The Decision to Shut Down Was Hard, But the Decision to Reopen Is Even Harder
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April 29, 2020 via Hotel Business
Politicians and industry leaders are struggling with when to allow hotels to open. Even when policy changes, just because hotels can reopen does not mean they should. When the pandemic hit the U.S., owners and operators were immediately concerned with the health and safety of their employees and guests. As occupancy levels plummeted, they scrambled to determine at what level it was more "profitable" to stay open than to close. A common range was between 8% and 12% occupancy. With that analysis, they then considered things like the duration of the lack of demand. At that point in time, hotel owners had the clarity of knowing that things were going to get worse: Cases would rise and travel would be discouraged, if not banned, by the government.

Now, more than a month later, things appear to be getting better. Cases are leveling off in some places, and governments are looking at when and how businesses can reopen. The challenge for owners is balancing the desire to resume business as soon as possible and the reality that sooner isn’t always better, particularly when dealing with a pandemic recovery. When weighing the decision of when to reopen, owners should consider the following:'s ConvergeBlog
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Running on Empty: Protecting People and Business During the COVID-19 Crisis

April 28, 2020 via Lodging Magazine
With an eye toward doing the right thing for guests and employees while surviving this uncertain time, LODGING spoke to a hospitality professor and two hotel management company executives about relevant issues including preventing the spread by stepping up housekeeping protections and managing employees and guests who become ill.
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Business Interruption Insurance: Litigation and Legislative Update

April 22, 2020 via Eckert Seamans

As state and local governments continue civil orders directing the mandatory shut down of commercial activity deemed non-essential or non-life sustaining, there have been an increasing number of lawsuits wherein business interruption insurance policy holders seek coverage for lost income due to government-mandated closures. In addition, multiple states are considering legislation, which would mandate coverage for pandemic related business losses regardless of contractual language.
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Companies Refocusing Internal Investigations Amid Pandemic
April 17, 2020 via Bloomberg Law

The Justice Department formed a coronavirus fraud task force on March 23, four days before Congress passed an unprecedented $2 trillion stimulus that provides direct payments to individuals and loans and grants to major industries--including pharmaceutical companies, hospital and airlines--and thousands of small businesses.

The injection of government funds combined with widespread financial hardship only heightens risk, attorneys say, opening the door for embezzlement, data breaches, misreporting of company financials, and insider trading.
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