Around 1,500 jobs have reportedly been placed at risk at hotel management firm LGH.
According to the BBC, the management group, which operates 55 hotels from brands such as Crowne Plaza and Holiday Inn, has entered a consultation period with its staff due to the impact of the coronavirus pandemic.
The BBC cites an unnamed source who works at one of the hotels managed by LGH who said that the majority of staff at the hotel were told that they could be made redundant.
It is thought that the majority of jobs that are at risk are operational such as chefs, front of staff and cleaners, however Joanne Monk, group people and development director at LGH, told the BBC that some higher management are also “at risk”.
She added that no decisions had been made about the number of jobs that would have to be cut adding that some may be retained on casual contracts.
Monk told the BBC that the consultation has been launched following a lack of demand for its hotels and that it doesn’t predict it to improve over the next six to 12 months.
“There is absolutely not the demand [for hotels] that there was before the pandemic”, she said.
LGH CEO Simon Teasdale told Hotel Owner: “In order to master the current Covid-19 situation, we are currently holding intensive talks with the staff. We are endeavouring to protect the interests of the employees and our company as best we can. Since the occupancy rate of hotels in the face of the pandemic necessitates capacity adjustments, we are currently reviewing all options for ensuring the company’s continued success.”