Skip to content

Search

Latest Stories

Choice to cut furloughed U.S. employees

Loss of consumer demand because of the COVID-19 pandemic led to decision

LOSS OF REVENUE from reduced consumer demand resulting from the COVID-19 pandemic has led Choice Hotels International to lay off U.S. corporate employees who had previously been furloughed. The decision is the most recent of similar steps large companies have had to take to deal with the crisis.

The laid off employees will receive severance packages and benefits, including outplacement support. The number of employees was not made clear by the company, but it has reduced its global workforce by more than 20 percent through a combination of layoffs and furloughs since the beginning of the first quarter, including the most recent layoffs.


A hiring freeze remains in place for all non-critical positions globally.

Choice Hotels made the difficult decision to transition previously furloughed corporate roles in the U.S. to a reduction in workforce, effective July 1, as part of the ongoing evolution of its efforts to help ensure the long-term health of the business and its independently owned and operated hotels amid a significantly reduced consumer demand environment resulting from the COVID-19 pandemic,” Choice said in a statement.

In early April, Choice announced several other steps to compensate for losses stemming from the COVID-19 downturn. They include:

  • Reduced the compensation for the company’s board of directors, chief executive officer and other executive officers for the remainder of 2020.
  • Implemented a hiring freeze except with respect to certain critical positions, suspended associates' 401(k) match and implemented a temporary furlough for certain positions in Europe, where government-mandated and other closures have been more prevalent.
  • Eliminated, reduced or deferred non-essential expenditures, discretionary capital expenditures and investments.
  • Suspended the company's share repurchase plan.
  • Determined to suspend future, undeclared dividends for the remainder of 2020.

"Given the broad-based uncertainty of the current environment, we have taken decisive actions over the past several weeks to position the company for changing market dynamics and enhanced our financial flexibility to sustain the long-term health of the business,” Patrick Pacious, Choice president and CEO, said at the time. “We are confident in our ability to weather this storm, while supporting our franchisees as they navigate uncharted waters. Choice Hotels has been through challenging times before and, each time, the company has always emerged stronger given its long-term focus, proven brands, high-caliber associates and broad franchisee base."

Other large companies have had to make cuts to their workforces as well. In June, Hilton Worldwide Holdings announced it was cutting around 2,100 corporate positions. India-based OYO hotels and Homes laid off and furloughed “a certain number of employees” in the U.S. Also, Vision Hospitality Group, led by President and CEO Mitch Patel in Chattanooga, Tennessee, had to furlough 1,100 of his 1,500 employees.

The “COVID-19 Hotelier Sentiment Study” by Fuel, StayNTouch and ReviewPro said that, while 41 percent of respondents believe that their hotels will fully recover in less than a year, most were “engaging in broad budgetary cuts” that included layoffs and furloughs.

More for you

Red Roof partners with FreedomPay to streamline payments in 700+ U.S. hotels
Photo credit: Red Roof

Red Roof taps FreedomPay for 700+ hotels

Summary:

  • Red Roof is contracting with FreedomPay to provide payments across its 700+ U.S. hotels.
  • The company will gain an integrated solution, improved service, cost savings and efficiency.
  • The company is investing in people and technology to advance the brand, president Zack Gharib told Asian Hospitality.

RED ROOF IS contracting with FreedomPay to provide payments across its portfolio of more than 700 hotels in the U.S. The company will receive an integrated payment solution, upgraded service, cost savings and operational efficiency, according to a statement.

Keep ReadingShow less
Gen Z Shifts Hotel Shopping: Tech, Experiences & Values

Survey: Gen Z redefines hotel shopping

Summary:

  • Younger consumers are redefining hotel discovery through platform-hopping and peer input, according to SOCi.
  • Fragmented search and discovery are reshaping how trust is built.
  • About one-third of consumers aged 18–34 report less brand loyalty than a year ago.

GEN Z IS RESHAPING hotel shopping through multiple platforms, peer input and real-time research, according to SOCi, a marketing platform for multi-location businesses. Unlike previous generations who relied on a single search engine or map app, the younger consumer moves through a series of smaller decisions - starting on TikTok, checking Reddit or Yelp and ending with a Google Maps search.

Keep ReadingShow less
Hotel Tech Advances; Outpaces Operational Readiness

Report: Tech outpaces readiness in hotels

  • A gap is growing between technological potential and operational readiness, with many hotel teams still early in AI use.
  • Distribution teams are evolving with limited resources and uneven investment in talent and automation.
  • The report outlines how commercial teams in hospitality are managing transformation.

THERE IS A widening gap between technological potential and operational readiness, with many hotel staff still early in using AI effectively, according to “The State of Distribution 2025” report. Despite the availability of technology, training, systems and workflows remain in development.

The second edition of the industry benchmark report—published by NYU SPS Jonathan M. Tisch Center of Hospitality and its Hospitality Innovation Hub, in collaboration with RateGain Travel Technologies and HEDNA—noted that as traveler expectations rise, aligning people, processes and platforms is becoming a driver of performance.

Keep ReadingShow less
Peachtree Group's Residence Inn by Marriott under construction in downtown San Antonio, topping out milestone reached, June 2025

Peachtree tops out San Antonio Residence Inn

Peachtree Hotel to Open in Summer 2026 with 117 Extended-Stay Rooms

PEACHTREE GROUP HELD a “topping out” for its Residence Inn by Marriott in downtown San Antonio, Texas, marking completion of the structural phase of the 10-story, 117-room hotel. The property, co-developed with Austin-based Merritt Development Group, is scheduled to open in summer 2026.

The extended-stay hotel will be owned by Peachtree and managed by its hospitality management division, the company said in a statement.

Keep ReadingShow less
Air India plane crash 2025
Photo by Sam PANTHAKY / AFP

Air India reducing flights after deadly crash

AIR INDIA WILL reduce international service on widebody aircraft by 15 percent through at least mid-July, according to media reports. The decision comes less than a week after the June 12 crash of an Air India airliner carrying 230 passengers and 12 crew members in Ahmedabad, India, that killed 246 but left one survivor among the passengers.

The airline said the reduced service due to the safety inspection of aircraft and ongoing geopolitical tensions in the Middle East, which have disrupted operations, resulting in 83 flight cancellations over the past six days, according to ABC News. Passengers can either reschedule their flights at no additional cost or receive a full refund.

Keep ReadingShow less