HOTEL BUSINESS REVIEW
FOCUS:

Franchised Economy Brand Hotels: Coverage Solutions in a Challenging Market

By Josh Cavallin Principal, Oakbridge Insurance | June 2024

A major challenge for most U.S. hotel owners and operators during 2023 and through the first quarter of 2024 has been their ability to control fixed-expense budgets, particularly rising insurance costs. A toxic combination of weather events, inflation, hotel valuation, reconstruction, material, and labor costs has created an extremely challenging environment for hotel operators, other real estate-focused industries, and personal property owners.

Limited-service or franchised economy-branded hotels face an even bigger issue - securing affordable coverage.

The insurance environment is much more cautious and thorough regarding hotel pricing than it was pre-pandemic. Obviously, there are regional variations in pricing and coverage terms because of the environmental issues within specific regions. The two regions hit hardest are the Southeast and Mountain/Pacific. As a result, most standard carriers have withdrawn from the economy-branded hotel market, leaving those insureds with very limited options.

Background - Valuation and Inflation’s One-Two Punch

During the pandemic, the industry witnessed depressed values. Post-pandemic, hotels are not trading for any less money than they were in 2019, yet the cost of reconstruction is substantially higher. For example, a hotel valued at $12 million pre-2019 may still be insured for that amount. Post-pandemic, not only do we see a premium increase because of the loss experienced within the hotel sector, but property valuation now on that property increases to $18 million, the current replacement cost market. What does that mean? This means that you now must insure $18 million at an increased property rate, which creates a compounding effect on insurance expenses.

This environment puts extreme pressure on hotel performance, eating up post-pandemic recovery money with increased insurance costs, which, in turn, creates more pressure on earnings before interest, taxes, depreciation, and amortization (EBITDA) for hotel owners and operators. The average annual insurance and rolling average annual growth for hotels has increased from roughly $350 per unit in 2018 to $600 per unit in 2022, with 2023 expected to be slightly higher once figures are available. During that same time, the average annual growth rate also increased from 1% in 2018 to 7% in 2022.

Limited Coverage Options for Economy Brands May Cloud Your P&l

To alleviate the dual pressures of inflation and valuation, there may be excess and surplus (E&S) or program business options.

The E&S market plays a critical role in the insurance industry and can be very beneficial for harder-to-place or higher-risk industries - those that the standard insurance markets have previously declined. The negative side to the E&S option can often lead to less or sub-limited coverage options, state taxes, fees, finance charges, and perhaps even franchise limitations. All of these factors result in higher insurance costs or the need for additional policies to fill coverage gaps typically included in standard market policies.

So where do the franchised economy brand hotels turn for coverage, and what procedures can operators implement to improve their insurability appearance?

Creating A Better Way Forward

There is no single solution to overcoming the current industry challenges. However, a multi-step approach that includes open communication with your agent and proactive risk assessment and management will help contain insurance costs.

The important first step for hotel owners is establishing a trusted relationship with a broker who not only has deep hospitality experience and a robust understanding of how the hotel industry operates but also has market access to all major hotel carriers.

Once you have selected your trusted agent, it is time to focus on the specific property details and risk mitigation steps that will make your hotel/motel more attractive to insurance carriers.

Getting Down to Specifics: Risk Mitigation Strategies That Increase Your Viability to Carriers

Roofing

Roofs are a major concern with underwriters during the underwriting process. Implementing a wind mitigation program that can reduce or eliminate major damage caused by windstorms is critical. Below are a few big items underwriters have been focusing on. Addressing these issues and retaining any documentation or maintenance records to support updates and conditions will be very beneficial when it comes to pricing terms.

Roof Covering

What type of roof covering does the property have, and how is it secured? The more up-to-date the roof, the better terms you are likely to receive. Shingles, TPO, tar and gravel, tiles, metal, etc.- some withstand wind better than others. Consider how they are attached and sealed. Nails, not staples, are always the better option; nail placement is key.

Roof Geometry

Consider the roof geometry if building or purchasing a new hotel. Hip and flat roofs are more attractive as they are designed to withstand higher winds. Gable roofs are less attractive since they extend vertically and fall outward, allowing wind to penetrate underneath and lift upward.

Water Resistance or Secondary Water Barrier

Water intrusion is a major issue with hotels and often goes undetected for extended periods due to the lack of a proper roof mitigation program. Raised nails and missing or raised shingles will allow water to penetrate, causing additional interior water damage. Some builders are starting to install a secondary layer between the primary structure and an insulating layer that acts as a light rain jacket.

Water Pipes

Frozen water pipes are another major concern when it comes to the hotel underwriting process. Between December 2022 and January 2023, the insurance industry suffered a 428% increase in freeze claims from winter storm Elliott.

Wrapped Pipes

Have pipes wrapped with insulation material, especially in unconditioned spaces like attics, crawlspaces, basements, or remote areas that may be less occupied.

Keep The Upper Floors Warm

Rent from the top down when temperatures drop or at least bump the heat up in the top floors so that the additional heat will rise to the attic areas and help prevent freezing. A higher utility bill will be much less expensive than a burst pipe in the attic that floods lower floors.

Temperature Sensors

Temperature sensors are like water sensors in that their primary function is to detect something out of the ordinary. They can be professionally monitored or cloud-based and will send an alert when the temperature drops below a safe range.

A Word About Liability Lawsuits: High Dollar Verdicts and Limits on Coverage

Social inflation and high-dollar (nuclear verdict) liability settlements are pushing claims into the excess or umbrella layers more than ever. As a result, the once easy and inexpensive excess market is now anything but. For some franchises, lower limits are acceptable. But for others, there are $10-$15 million dollar-plus coverage requirements, which can result in $15-20k additional insurance costs for just the excess liability.

The increased liability claims have devastated exterior corridor properties. Assault and battery coverage, which is extremely important for any type of hotel, has essentially become non-existent for exterior corridor hotels, aside from very small sub-limited coverage options. The problem with sub-limited coverage is that the excess and umbrella typically follow form or also exclude assault and battery, which often leaves the insureds non-compliant with their franchise.

Premises liability is to blame. Georgia is a prime example, recently replacing California as the new “#1 judicial hellhole. ” The litigation climate in the state has deteriorated for years and reached a fever pitch in 2022. Georgia state courts have issued some of the country’s largest nuclear verdicts, attracting personal injury lawyers and private equity investors in droves.

Unfortunately, until tort reform is passed, insureds cannot do much other than express their concerns as small business owners to their local elected officials in hopes of affecting meaningful change.

Actionable Liability Risk Mitigation Strategies

Effective risk mitigation is essential for hotels to ensure the safety, security, and success of their operations. Risk mitigation for hotels involves implementing strategies to identify, assess, and address potential threats to guests, employees, and assets’ safety, security, and well-being. This encompasses various areas such as security measures, emergency preparedness, health and safety protocols, and financial risk management.

To mitigate security risks, hotels often employ surveillance systems, access controls, and trained personnel to deter and respond to incidents such as theft, vandalism, or violence. Additionally, hotels must have robust emergency response plans in place, including procedures for fires, natural disasters, medical emergencies, and other crises, along with regular training and drills to ensure staff readiness.

Health and safety risks can be mitigated through stringent cleanliness and hygiene practices, compliance with health regulations, and measures to prevent the spread of infectious diseases.

Financial risks, including fluctuations in demand and economic downturns, can be managed through diversification of revenue streams, insurance coverage, and prudent financial planning.

Here are some specific, actionable steps hotel owners and operators can implement to mitigate other liability risks:

Facility safety: Most hotels have a facility safety inspection program. If not, one should be implemented immediately.
Electrical panels: It is crucial that the property has an updated, non-obstructed electrical panel with no open circuits.
Life safety: Ensure all fire exits are unobstructed, exit lights are all operational, emergency exit placards are in rooms and common areas, and backup generators are on-site.
Swimming pools: Rules should be posted in common spaces, depth markers should be clearly visible, and the flooring should be in good condition and not slippery. There should be emergency phones and a shepherd’s hook on site, along with an operational ADA wheelchair lift installed.
Slip, trip, and fall prevention: These are the most common safety hazards in a hospitality business. All floors should be inspected for hazards like cracked tiles, wet floors, cables or cords, rugs, or flat mats. Install non-slip strips or mats in hotel and pool entrance areas for wet days. This also applies to in-room bathroom and shower areas. Bathroom grab bars should be installed and properly secured to prevent falls. All furniture should be thoroughly inspected to ensure no injuries occur from damaged furniture.
Elevators: You want to make sure you have a current elevator maintenance contract.
Pest control: Bed bugs have been a big issue among hotels over the last three to five years. It is essential to ensure you have a current pest contract that includes bed bug prevention. It is often recommended that you provide a copy of this to your agent on an annual basis.

By proactively addressing these risks, hotels can safeguard their reputation, protect their assets, and provide guests with a secure and enjoyable experience.

Final Thoughts

If your property does not currently have a risk mitigation checklist, we strongly recommend putting one in place. It will drive accountability amongst team members, reduce incidents, and create a positive safety culture, which results in a well-operated property with proven results for the underwriter to consider.

All the items we have discussed play a critical role so that your broker can present the underwriter with a clear picture of exactly how well your property is operated from a risk mitigation perspective. In return, economy or limited-service hotels can obtain strong coverage in a very difficult marketplace.

Terms & Conditions

The following are terms of a legal agreement ("Agreement") between you and HotelExecutive. By accessing, browsing and/or otherwise using this web site, HotelExecutive, you acknowledge that you have read, understood and agreed to be bound by these terms and conditions, and to comply with all applicable laws and regulations, including U.S. export and re-export control laws and regulations. If you do not agree to all of these terms and conditions, you may not access, browse and/or use HotelExecutive. The material provided on HotelExecutive is protected by law, including, but not limited to, United States copyright law and international treaties.

These terms of access apply to your access to and use of HotelExecutive and do not alter in any way the terms and conditions of any other agreement you may have with HotelExecutive for products, software, services or otherwise, unless otherwise directed by HotelExecutive. If you breach any of these terms and conditions, your authorization to use HotelExecutive automatically terminates and you must immediately destroy any downloaded or printed materials and discontinue use of any hyperlinks to HotelExecutive.

1. USE RESTRICTIONS

Copyright. All Site materials, including, without limitation, text, pictures, graphics and other files and the selection and arrangement thereof are copyrighted materials of HotelExecutive © 1996-2016, ALL RIGHTS RESERVED, or by the original creator of the material. Permission is granted to display and use the materials on HotelExecutive for private individual, educational and noncommercial use only, provided you do not modify the materials and that you retain all copyright and other proprietary notices contained in the materials. You may not, however, distribute, copy, reproduce, display, republish, download, or transmit any material on HotelExecutive for commercial use without prior written approval from HotelExecutive. You may not "mirror" any material contained on HotelExecutive on any other server without prior written permission from HotelExecutive. Any unauthorized use of any material contained on HotelExecutive may violate copyright laws, trademark laws, the laws of privacy and publicity and communications regulations and statutes.

Trademarks

The trademarks, service marks, trade names and logos (the "Trademarks") used and displayed on HotelExecutive are registered and unregistered Trademarks of HotelExecutive. In addition, all page headers, custom graphics, icons and scripts are service marks, trademarks and/or trade dress of HotelExecutive, and may not be copied, imitated or used, in whole or in part, without the prior written permission of HotelExecutive. You acknowledge that the Trademarks used and displayed on HotelExecutive are and shall remain the sole property of HotelExecutive or the Trademark owner. Nothing in this Agreement shall confer any right of ownership of any of the Trademarks in you. Further, nothing in HotelExecutive shall be construed as granting, by implication, estoppel or otherwise any license or right to use any Trademark used or displayed on HotelExecutive, without the express written permission of HotelExecutive or the Trademark owner. The misuse of the trademarks displayed on HotelExecutive, or any other Content on HotelExecutive, is strictly prohibited.

Hyperlinks

You are granted a limited, nonexclusive right to create a hypertext link to HotelExecutive provided that such link is to the entry page of HotelExecutive and does not portray HotelExecutive or any of its products or services in a false, misleading, derogatory, or otherwise defamatory manner. This limited right may be revoked at any time for any reason whatsoever. You may not use framing techniques to enclose any Company trademark, logo or trade name or other proprietary information including the images found at HotelExecutive, the Content of any text or the layout/design of any page or any form contained on a page without HotelExecutive's express written consent. Links to third party sites on HotelExecutive are provided solely as convenience to you. If you use these links, you will leave HotelExecutive. HotelExecutive has not reviewed all of these third party sites and does not control and is not responsible for any of these sites, their Content or their policies, including, without limitation, privacy policies or lack thereof. HotelExecutive does not endorse or make any representations about third party sites or any information, software or other products or materials found there, or any results that may be obtained from using them. If you decide to access any of the third party sites linked to HotelExecutive, you do so entirely at your own risk. You acknowledge and agree that HotelExecutive shall not be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by, or in connection with the use of or reliance on any such third party sites.

Downloadable Materials

Any software, including codes or other materials that are made available to download from HotelExecutive, is the copyrighted work of HotelExecutive and/or its suppliers and affiliates. If you download software from HotelExecutive, use of the software is subject to the license terms in the software license agreement that accompanies or is provided with the software. You may not download or install the software until you have read and accepted the terms of the applicable software license agreement. Without limiting the foregoing, copying or reproduction of the software to any other server or location for further reproduction or redistribution is expressly prohibited unless otherwise provided for in the applicable software license agreement in the case of software, or the express written consent of HotelExecutive in the case of codes or other downloadable materials.

Limited Access

Except as otherwise expressly permitted by HotelExecutive, any access or attempt to access other areas of HotelExecutive computer system or other information contained on the system for any purposes is strictly prohibited. You agree that you will not use any robot, spider, other automatic device, or manual process to "screen scrape," monitor, "mine," or copy the Web pages on HotelExecutive or the Content contained therein without HotelExecutive's prior, express, and written permission. You will not spam or send unsolicited e-mail to any other user of HotelExecutive for any reason. You agree that you will not use any device, software or routine to interfere or attempt to interfere with the proper working of HotelExecutive. You agree that you will not take any action that imposes an unreasonable or disproportionately large load on HotelExecutive's infrastructure.

Additional Use Restrictions

You shall not post, transmit, e-mail, re-transmit or store material on or through any of the services provided by HotelExecutive (the "Services") which, in the sole judgment of HotelExecutive: (i) is in violation of any local, state, federal or non-United States law or regulation, (ii) is threatening, obscene, indecent, defamatory or that otherwise could adversely affect any individual, group or entity (collectively, "Persons") or (iii) violates the rights of any person, including rights protected by copyright, trade secret, patent or other intellectual property or similar laws or regulations including, but not limited to, the installation or distribution of "pirated" or other unauthorized photos or software products that are not appropriately licensed for use by you. You shall be responsible for determining what laws or regulations are applicable to its use of the Services. In addition, you may only use the Services in a manner that, in HotelExecutive's sole judgment, is consistent with the purposes of such Services. If you are unsure of whether any contemplated use or action is permitted, please contact HotelExecutive at editor@HotelExecutive By way of example, and not limitation, the following uses described below of the Services are expressly prohibited:

A. upload, post, e-mail or otherwise transmit any information, data, text, software, music, sound, photographs, graphics, video, messages or other materials (collectively, "Content") that is unlawful, harmful, threatening, abusive, harassing, tortious, defamatory, vulgar, obscene, libelous, invasive of another's privacy, hateful, sexually intolerant or racially, ethnically or otherwise objectionable;

B. impersonate any person or entity, including, but not limited to, a Company official, forum leader, guide or host, or falsely state or otherwise misrepresent your affiliation with a person or entity;

C. forge headers or otherwise manipulate identifiers in order to disguise the origin of any Content transmitted through the Services or develop restricted or password-only access pages, or hidden pages or images (those not linked to from another accessible page);

D. upload, post, e-mail or otherwise transmit any Content that you do not have a right to transmit under any law or under contractual or fiduciary relationships such as inside information, proprietary and confidential information learned or disclosed as part of employment relationships or under nondisclosure agreements;

E. upload, post, e-mail or otherwise transmit any Content that infringes any patent, trademark, trade secret, copyright or other proprietary rights of any party;

F. upload, post, e-mail or otherwise transmit any unsolicited or unauthorized advertising, promotional materials, "junk mail," "spam," "chain letters," "pyramid schemes" or any other form of solicitation;

G. upload, post, e-mail or otherwise transmit any material that contains software viruses, worms or any other computer code, files or programs designed to interrupt, destroy or limit the functionality of any computer software or hardware or telecommunications equipment;

H. interfere with or disrupt the Services or servers or networks connected to the Services, or disobey any requirements, procedures, policies or regulations of networks connected to the Services;

I. intentionally or unintentionally violate any applicable local, state, national or international law, including, but not limited to, regulations promulgated by the U.S. Securities and Exchange Commission, any rules of any national or other securities exchange, including, without limitation, the New York Stock Exchange, the American Stock Exchange or the NASDAQ, and any regulations having the force of law;

J. 'stalk' or otherwise harass another user of HotelExecutive or Company employee or official;

K. promote or provide instructional information about illegal activities, promote physical harm or injury against any group or individual, or promote any act of cruelty to animals. This may include, but is not limited to, providing instructions on how to assemble bombs, grenades and other weapons, and creating "Crush" sites; and

L. effecting security breaches or disruptions of Internet communication. Security breaches include, but are not limited to, accessing data of which you are not an intended recipient or logging into a server or account that you are not expressly authorized to access.

M. advertising to, or soliciting any user of HotelExecutive to buy or sell any products or services through the unauthorized or impermissible use of the Services. You may not transmit any junk email or chain letters to other users. If you breach this Agreement and send unsolicited bulk email, instant messages or other unauthorized commercial communications of any kind through the Services, you acknowledge that you will have caused substantial harm to HotelExecutive, but that the amount of such harm would be extremely difficult to ascertain. As a reasonable estimation of such harm, you agree to pay HotelExecutive $500 for each such unsolicited email or other unauthorized commercial communication you send to each user through the Services.

2. DISCLAIMER WARRANTY

HotelExecutive, including all software, functions, materials, and information is provided "as is" without warranties of any kind, either express or implied. HotelExecutive disclaims all warranties, express or implied, including, but not limited to, warranties of non-infringement and implied warranties of merchantability, fitness for a particular purpose, non-infringement, title, merchantability of computer programs, data accuracy, system integration, and informational Content. HotelExecutive does not warrant or make any representations regarding the operation of HotelExecutive, the use, validity, accuracy or reliability of, or the results of the use of the materials on HotelExecutive or any other sites linked to HotelExecutive. The materials of HotelExecutive may be out of date, and HotelExecutive makes no commitment to update the materials at HotelExecutive. HotelExecutive does not and cannot guarantee or warrant that the files available for downloading from HotelExecutive, if any, will be free from infection, viruses, worms, Trojan horses, or other code that manifest contaminating or destructive properties. HotelExecutive does not warrant that HotelExecutive, software, materials, products, or services will be uninterrupted or error-free or that any defects in HotelExecutive, software, materials, products, or services will be corrected.

3. LIMITATION OF LIABILITY

In no event will HotelExecutive, its suppliers or other third parties mentioned at or in HotelExecutive be liable for any damages, including, without limitation direct, indirect, special, incidental, or consequential damages, damages resulting from lost profits, lost data or business interruption arising out of relating to the use, inability to use, or resulting from the use of HotelExecutive, any web sites linked to HotelExecutive, the materials, software or other information contained in any or all such sites, whether based on warranty, contracts, statutes, regulations, tort (including but not limited to, negligence) or any other legal theory and whether or not advised of the possibility of such damages. If your use of the materials or information from HotelExecutive results in the need for servicing, repair or correction of equipment or data, you assume all costs thereof.

4. REVISIONS TO THIS AGREEMENT

HotelExecutive may revise this Agreement at any time without notice by updating this posting. By using HotelExecutive you agree to be bound by any such revisions and should therefore periodically visit HotelExecutive and page to determine the then current Terms of Access and Use conditions of use to which you are bound.

5. TRANSMISSIONS

Any idea you transmit to or post on HotelExecutive by any means will be treated as non-confidential and non-proprietary and may be disseminated or used by HotelExecutive or its affiliates for any purpose whatsoever, including, but not limited to, developing and marketing products. You are prohibited from posting or transmitting to or from HotelExecutive any unlawful, threatening, libelous, defamatory, obscene, scandalous, inflammatory, pornographic, profane material or any other material, including but not limited to any material that could give rise to any civil or criminal liability under both domestic and international law.

6. YOUR WARRANTIES

You warrant to HotelExecutive that:

You are the sole owner of all rights in the materials posted or uploaded by you (including all related copyrights) or that you have the absolute right to license their use as provided in this section. While you will retain ownership of the copyright in the materials posted or uploaded by you, you agree that all materials posted or uploaded by you shall become part of a database, and that HotelExecutive will own the compilation copyright in that database. In addition, you hereby grant HotelExecutive a perpetual, worldwide, irrevocable license to use, reproduce, modify, publish, publicly perform, publically display and distribute such materials, and portions of such materials and any derivative works created from such materials, in print, electronic and other media, by any means now known or developed in the future. We may sublicense all of our rights and licenses or assign them to third parties. Neither HotelExecutive nor any third party using the materials in accordance with this section will be obligated to pay you any royalties or other compensation for use of the materials.

You will comply with these Terms of Access and Use including, without limitation, the USE RESTRICTIONS set out in Section 3 above;

You agree to indemnify and hold HotelExecutive harmless from any claim or damages (including any legal fees in relation to same) made by a third party in respect of any matter in relation to or arising from your use and/or membership arising from any breach or suspected breach of these Terms of Access and Use by you or your violation of any law or the rights of any third party.

7. ACTIONS WE MAY TAKE AT OUR SOLE DISCRETION

HotelExecutive may take any or all of the following actions at our sole discretion:

Remove any member profile (including photographs) or other material that, in our sole discretion may be inappropriate or we suspect to be illegal, subject us to liability or which may violate these Terms of Access and Use or where required to do so by law;

Issue members with verbal or written warnings and may take such further action as we deem appropriate if such warnings are not heeded;

Suspend or terminate a member's access to the members's area of HotelExecutive or a member's account without notice at any time;

Inform the appropriate authorities and provide them with information regarding any suspected illegal activity; or bring legal action against a member or other user of HotelExecutive in relation to any breach of these Terms of Access and Use or any illegal or suspected illegal activity.

8. GOOD SAMARITAN CONTENT AND COMPLAINT PROCEDURES POLICY

A. Policy

We have provided opportunities for you to contribute Content to our Site. It is our policy, however, not to allow any Content which may constitute intellectual property infringement; violations of federal, state, or local law; obscene or defamatory material, or may otherwise be unacceptable or inappropriate. Upon learning of such Content, we will attempt, and you hereby give HotelExecutive the right, to delete, edit, remove, disable, change, or restrict access to or the availability of the Content, which in our sole discretion, is otherwise unacceptable or objectionable. We may or may not notify you about what action we take with respect to the disputed Content. The provisions of this section are intended to implement this policy but are not in any way intended to impose a contractual obligation upon us to undertake, or refrain from undertaking, any particular course of conduct.

B. Complaint Procedures

If you believe that another user or other third party has posted Content which violates this policy or specifically the USE RESTRICTIONS in Section 3 above, you may notify HotelExecutive via e-mail at editor@HotelExecutive . In order to allow HotelExecutive to respond effectively, please provide HotelExecutive with as much information as possible in your correspondence, including: (1) the nature of the right infringed or violated (including any applicable registration numbers of the federally-registered intellectual property allegedly infringed), if applicable, or the unacceptable or inappropriate Content; (2) all facts which lead you to believe that a right has been violated or infringed, if applicable; (3) the precise location where the offending Content is located; (4) any grounds to believe that the party or user which posted the Content was not authorized to do so or did not have a valid defense (including the defense of fair use), if applicable; (5) if known, the identity of the party or user who posted the infringing, offending, or inappropriate Content; and (6) in the case of alleged copyright infringement claims, information sufficient to identify the work and your claims to ownership.

C. Indemnification/Waiver of Certain Rights

By contacting HotelExecutive and complaining of an alleged violation, you agree that the substance of your complaint shall constitute a representation made under the pains and penalties of perjury pursuant to the laws of the State of California. In addition, you agree, at your own expense, to defend and indemnify HotelExecutive and hold HotelExecutive harmless against all claims which may be asserted against HotelExecutive, and all losses incurred, as a result of your complaint and/or our response to it.

D. Waiver of Claims and Remedies

We expect all users of our Site to take responsibility for their own actions and cannot and do not assume liability for any acts of third parties which take place at our Site. By utilizing the Good Samaritan procedures set forth herein, you waive any and all claims or remedies which you might otherwise be able to assert against hotelexecutive under any theory of law (including, but not limited to, intellectual property laws) that arise out of or relate in any way to the content at hotelexecutive or our response, or failure to respond, to a complaint.

E. Investigation/Liability Limitation

You agree that we have the right, but not the obligation, to investigate any complaint received. By reserving this right, we do not undertake any responsibility in fact to investigate complaints or to remove, edit, disable or restrict access to or the availability of Content. We will not act on complaints that we believe, in our sole discretion, to be deficient, incomplete, or otherwise questionable. If you believe that Content remains on HotelExecutive which violates your rights, Your sole and exclusive remedy shall be against the user or other party responsible for said content, not against HotelExecutive. your sole and exclusive remedy against HotelExecutive shall be to terminate your use of HotelExecutive and service.

Digital Millennium Copyright Act Compliance. As set forth in Subsection (b), you must contact our agent if you believe that a work protected by a U.S. Copyright which you own has been posted on our Site without authorization or that our Site, in some material way, contributes to its infringement. It is our policy in appropriate circumstances, if possible, to terminate the access rights of repeat infringers and other users who use HotelExecutive in an inappropriate or objectionable manner.

9. COOPERATION WITH LAW ENFORCEMENT

HotelExecutive reserves the right to fully cooperate with any law enforcement authorities or court order requesting or directing HotelExecutive to disclose the identity or other information regarding any user or member alleged by any governmental entity to be using HotelExecutive or any Content or materials available in, at, through or in association with HotelExecutive in violation of any law or regulation, or in violation of this Agreement, including, without limitation, the posting of e-mail messages, or publishing or otherwise making available any such materials. By accepting this agreement you waive and hold harmless HotelExecutive from any claims resulting from any action by HotelExecutive during, or as a result of, its investigations, and from any actions taken as a consequence of investigations by either HotelExecutive or law enforcement authorities

10. APPLICABLE LAWS, VENUE, JURISDICTION & MANDATORY ARBITRATION

If any provision(s) of this Agreement is held by a court of competent jurisdiction to be contrary to law, then such provision(s) shall be construed, as nearly as possible, to reflect the intentions of the parties with the other provisions remaining in full force and effect. HotelExecutive's failure to exercise or enforce any right or provision of this Agreement shall not constitute a waiver of such right or provision unless acknowledged and agreed to by HotelExecutive in writing. The section titles in this Agreement are solely used for the convenience of the parties and have no legal or contractual significance. This Agreement may be assigned in whole or in part by HotelExecutive. This Agreement may not be assigned in any manner by you without the express, prior written permission of HotelExecutive.

Any and all disputes or controversies of any kind, including but not limited to any performance, duty, obligation or liability arising under or related to this Agreement which are not first resolved informally, shall be determined by binding arbitration in San Francisco, California, in accordance with the rules of the American Arbitration Association. The final award in any such arbitration proceeding shall be subject to entry as a judgment by any court or competent jurisdiction, provided that such judgment does not conflict with the terms and provisions hereof. The jurisdiction of the arbiter (or arbiters) with respect to legal matters shall be limited only by the statutory and common law of the State of California and the United States.

Notwithstanding the foregoing, any and all disputes, which the parties cannot informally resolve, regarding the scope of issues or matter with the jurisdiction of the arbitrator, shall be resolved by a separate dispute resolution process whereby HotelExecutive, in its sole discretion shall elect the dispute to be resolved by either (1) a court of competent jurisdiction in the State of California or (2) a panel of three new arbitrators.

This Agreement shall be governed by and construed in accordance with the laws of the State of California notwithstanding any conflict of laws provisions. You and HotelExecutive agree that the venue for all legal disputes, controversies, actions of any kind arising under or related to this Agreement shall be San Francisco, California. You and HotelExecutive further agree that in case of any litigation regarding this Agreement, you irrevocably and unconditionally (i) consent to submit to the exclusive jurisdiction of the state and federal courts in the County of San Francisco, California for any litigation or dispute arising out of or relating to this Agreement, (ii) agree not to commence any litigation arising out of or relating to this Agreement except in the California Courts, (iii) agree not to plead or claim that such litigation brought therein has been brought in an inconvenient forum, and (iv) agree the California Courts represent the exclusive jurisdiction for all litigation relating to this Agreement.

11. MEMBERSHIP FEES

Hotel Business Review Subscriptions

If you choose to purchase a subscription, member subscription payments can be made in U.S. Dollars, as well as a variety of international currencies. Membership terms are Annual Recurring, and Monthly Recurring. The Annual Recurring subscription is an annual commitment and subscribers will be charged each consecutive billing cycle. Annual Recurring subscriptions can be cancelled after the first billing cycle and within 30-days of the billing date for a full refund. Monthly Recurring subscriptions are ongoing and subscribers will be charged each consecutive monthly billing cycle. Monthly Recurring subscriptions can be cancelled after the first month and within 7 days of the monthly billing cycle for a full refund.

12. PAYMENT AUTHORIZATION

Payment for the services provided to you in, at, through or in association with HotelExecutive may be made by automatic credit card, debit card, direct debit, bankwire or Paypal and other approved payment means offered in, at, through or in association with HotelExecutive, and you hereby authorize HotelExecutive and its agents to transact such payments on your behalf.

You hereby authorize HotelExecutive's Internet Payment Service Provider to charge your credit card to pay for your membership to HotelExecutive. You further authorize HotelExecutive's Internet Payment Service Provider to charge your credit card for any and all purchases of products, services in association with HotelExecutive. You agree to be personally liable for all charges incurred by you in association with your access or other use of any content provided by HotelExecutive or any third party in association with HotelExecutive. You acknowledge and agree that your liability for all such charges shall continue after termination of your access or any type of membership arrangement with HotelExecutive.

In the event that you have chosen to have your membership automatically rebilled, unless and until you notify HotelExecutive that you wish to cancel or terminate your membership to HotelExecutive, you hereby agree and authorize HotelExecutive's Internet Payment Service Provider to automatically renew your membership to HotelExecutive on a continuing basis and to charge your credit card (or other payment means you have selected) to pay for the ongoing cost of your membership. You hereby further authorize HotelExecutive's Internet Payment Service Provider to charge your credit card (or other approved payment means you have selected) for any and all purchases of products, services and entertainment provided to in, at, through or in association with HotelExecutive.

13. PRIVACY POLICY

The following is the Privacy Policy for HotelExecutive

We can be reached via telephone, email, or online at our contact page. When you visit our site we do not log any information regarding your domain or email address. Information Sharing: We do not share user information with any third parties other than via press release distribution as described below.

Hotel Newswire is a newswire service that distributes press releases on behalf of our users. If you decide to submit a press release for distribution through our system we will transmit your entire press release including any personal information therein contained to our media contacts and online distribution points including search engines. This is the only redistribution of your information that we engage in. Your submission of press releases through our system indicates consent with this policy. The information we collect during your registration process is used to notify users about updates to our service and inform users of any special events hosted by Hotel Newswire. This information is not shared with other organizations for commercial or non-commercial purposes.

Cookies: Our system requires the use of cookies to enable the user to log back into our website to access information from the newswire, without having to log in each time using the required username and password.

If you do not want to receive email from us in the future, please let us know by following instructions included in our communication with you. Users who supply us with telephone numbers online may receive telephone contact from us regarding their account, or informing them of new products and services available on the HotelExecutive website. If you do not wish to receive such telephone calls, please edit your account and remove your phone number from your account profile. This can be done from your user account menu.

Ad Servers: We do not partner with or have any relationship with any ad server companies. From time to time, we may use customer information for new uses not previously disclosed in our privacy notice. If our information practices change at any time, we will post the policy changes to our website to notify you of these changes and provide you with the ability to opt out of these new uses. If you are concerned about how your information is used, you should check back at our website periodically.

Upon request we provide site visitors with access to all information (including proprietary information) that we maintain about them. Users can access this information by logging in to their account.

Security: We always use industry-standard encryption technologies while transferring and receiving user data exchanged with our site. We have appropriate security measures in place in our physical facilities to protect against the loss, misuse, or alteration of information that we have collected from you on our site. We do not store credit card information in our systems.

If you feel that this site is not following its stated information policy, you may contact us.

Receive our Newsletter

Embracing Locally Sourced Ingredients in Hotel Dining

By Jeremy Sadler, General Manager, Valor Hospitality Partners

Crafting an Immersive Guest Experience with Locally Sourced Ingredients One of the greatest benefits of locally sourced ingredients is the ability to form a deeper connection with hotel guests and the local community. When guests are exposed to dishes crafted from ingredients sourced from nearby farms and producers, they feel a sense of authenticity by knowing they are directly supporting local businesses. This connection transcends the nourishing aspect of a meal, as it allows guests to experience the essence of a destination through its culinary heritage and flavors. Around the world, each region boasts its own culinary...

Raising the Bar in Hotel F&B

By Amy Draheim, Founder, ABD Creative

F&B is an undeniable cornerstone of the hospitality industry, but all too often it's feast or famine. When operations and marketing work together effectively, F&B can make significant contributions both to the guest experience and to revenue generation. As F&B operators race to embrace the latest trends, marketers must trot in tandem as key partners. Harnessing the latest trends on both the operations side and the marketing side will surprise and delight prospective guests, even before they set foot in your restaurant. The Green Stack One of the most prominent trends in the hospitality F&B sector is the...

Managing Hotel Labor Costs Today

By Kasia Russell, Senior Managing Director, Practice Leader, HVS

Managing labor costs in a hotel operation is crucial to maintaining a profitable business while delivering the service level that is commensurate with the scale of hotel. Finding this balance has been especially difficult in a post-COVID-19 environment, when inflationary challenges coupled with labor supply shortages have put further pressures on hotel operations. Labor is one of the most significant expenses a hotel faces, accounting for 30–45% of total operating costs. Managing these costs takes creativity, innovation, organization, and diligence. Adjustments must be carefully considered because making too many staffing cuts can lower profitability and negatively affect the...

Re-Imagining The Outdoors: Building Hospitality Brands at The Gateway to Nature

By Matthew Mering, Executive Vice President of Hospitality, Waterton

There is a distinct magic in stepping outside and being instantly immersed in nature. For many travelers, the draw of the outdoors isn’t just about escaping the city or disconnecting from screens; it’s about a deeper sense of freedom, possibility, and connection. As travel patterns evolve, hospitality brands operating near national parks and outdoor destinations are uniquely positioned to shape how people engage with the natural world. What was once a niche offering, has become one of the most dynamic and in-demand sectors in travel, fueled by the rising appetite for meaningful, adventure-driven experiences. As more travelers prioritize wellness, mental...

How Can Luxury Hotels Adopt Sustainability Practices Without Losing Quality Control?

By Andy De Silva, Co-Founder & CEO, Hotel Emporium

The modern customer is not shy in their clear expectations of a luxury hotel experience. After all, when investing in that caliber of a stay, there is an understanding that they will enjoy far more than a simple good night’s sleep. And with the rising interest in sustainability, not just to support the environment but also to meet the demands of the new eco-conscious consumer, luxury hotels are seeking ways to pivot their operations. However, as to be expected, activating on ideas and plans outside of normal operations can bring about a bit of fear. How does a...

Mistakes Hotel Companies Make When Actively Hiring

By Heather Berti, Senior Vice President of People Services, Arlo Hotels

Hotel companies are always looking to fill open roles. According to a survey conducted by the American Hotel & Lodging Association (AHLA) and AHLA Gold Partner Hireology, hotels have, on average, six to seven open positions per property. As a result, hotel companies and hiring managers often undercut the expectations for these roles in an effort to quickly fill the position and alleviate a staffing shortage. The hiring process is a delicate balance between communication, training and investment. It can be tedious and often takes time, patience, and equal parts effort from various team members at different levels. It...

The Rise of Sleep Tourism

By Haley Payne, Head of Commercial, Pure Wellness

According to Hilton's third annual trends report, this year will be marked by a pronounced emphasis on wellness travel, with "rest and relaxation" identified as the pivotal trend shaping the travel landscape for 2024. Beyond the traditional offerings like spas, yoga classes at sunrise, and fitness centers with the latest equipment, the pursuit of personal wellness has undergone a significant transformation. As a result, today's travelers, whether embarking on a business trip or a leisurely vacation with friends or family, are placing a growing emphasis on prioritizing sound sleep and rest. Known as sleep tourism, this phenomenon refers...

HOTEL BUSINESS REVIEW FOCUS:

Franchised Economy Brand Hotels: Coverage Solutions in a Challenging Market

By Josh Cavallin Principal, Oakbridge Insurance | June 2024

Terms & Conditions

Receive our Newsletter

HOTEL BUSINESS REVIEW
FOCUS: