Tag Archives: Hotels

Hospitality Industry Property Risks: Minnesota Hotel Suffers Extensive Flooding And Electrical Equipment Damage From Broken Water Line

“…the waterline break occurred during a planned repair project and also flooded the skywalk tunnel under the street between the hotel and the hotel water pipe burstdowntown Duluth Public Library…the line that broke was not a city waterline but the hotel’s own service line running into the building…it appeared that a private contractor replacing the service somehow severed the line, triggering the flood of water…”

Officials with Duluth’s Radisson Hotel said Saturday evening that they’re still working to assess the damage caused by a broken waterline earlier this week, and there is no timeline yet for reopening. The waterline break on Wednesday night flooded the downtown hotel’s basement and disrupted electrical service to the building. About 80 guests had to be evacuated to other hotels.

“Hotel ownership and management teams are working as quickly as possible to determine the extent of the damage caused by the flooding and what equipment and work will be necessary in order to open the hotel,” hotel officials said in a news release Saturday evening. “As of (Saturday), that assessment continues and the Radisson is unable to provide an estimated time frame at this point in time. The safety and welfare of our guests and team members is first and foremost in determining when we will be able to open.”

Officials said they continue to work with other hotels in Duluth to relocate guests who had reservations at the Radisson. They said an update on the hotel’s status is expected by Wednesday. The Radisson has 268 guest rooms, in addition to its restaurant, meeting and banquet facilities.

For more:  http://www.duluthnewstribune.com/event/article/id/261688/

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Filed under Insurance, Liability, Management And Ownership

Hospitality Industry Cybercrime Risks: Hotel And Restaurant “Connected Point-Of-Sale (POS) Systems” Attacked By New Malware Called “Dexter”; Steals Credit Card Data And Transmits It “Encrypted” Back To Attacker

“…Just before the 2012 festive period, a new piece of malware surfaced and was found in hundreds of POS systems in hotels, restaurants, retailers and private parking providers. The malware was discovered by Israel-based security cybercrime in hotelsfirm Seculert: ‘Dexter’ (which comes from the string ‘BKDR_DEXTR.A’) is a data-theft tool used to target and attack POS systems. The program, which is Microsoft Windows-based, uses common techniques to search the memory of running processes to identify credit-card track data, but with the uniqueness of the attacker having full control…”

Connected point-of-sale (POS) systems – that’s the checkout to you and me – are the most recent targets of the cybercriminal, and a specially-crafted malware, dubbed Dexter, is further indication that now all kinds of connected devices may be vulnerable to attack.

Seculert CTO and co-founder Aviv Raff explains that while the company is as yet uncertain as to who is behind Dexter, the author is fluent in English: Dexter mainly targeted English-speaking countries. The malware was located in 40 different countries, but notably 42 per cent of POS systems targeted were in North America and 19 per cent UK-based. “Instead of going through the trouble of infecting tens of thousands of consumer PCs or physically installing a skimmer, an attacker can achieve the same results by targeting just a few POS systems with specially crafted malware,” Raff says.

The malware injects itself into the iexplore.exe file in Windows servers, through rewriting in the registry key. It then’ pinches sensitive credit-card data from the server, before transferring it through a remote command and control system. Windows-based POS systems are used increasingly in the industry, and according to Seculert’s findings, 51 per cent of targeted POS systems use the outdated Windows XP. The high percentage indicates Windows-based machines that process unencrypted track data are viable targets.

Microsoft Windows XP may be the ‘preferred’ choice for POS systems, especially among smaller retailers who feel that they cannot afford to upgrade, but with the operating system to be discontinued in 2014, the question is over what support will be offered for remaining XP users and if they will be able to handle the upgrade to Windows 7 or 8.

“Dexter only has three purposes in life,” says Trustwave’s security researcher Josh Grunzweig. “To always be running on the victims’ machine, to find any card, or track, data in any running program on the victim, and to communicate with the attacker who is controlling it.”

The latter is what makes the malware stand out and impresses Grunzweig. “I can’t remember the last time I saw a piece of malware that targeted POS systems that had a nice command and control structure to it,” adds Grunzweig.

He explains the hacker maintains control of the attack by using normal communication methods, but with the skill to hide what it was sending by encoding the data. This involved sending out a message to the attacker, by default, every five minutes and also checks the victim to see if there is any track data running every 60 seconds.

The magnetic strip on a credit card contains three tracks and the malware attempts to extract data from memory relating to tracks one and two, containing numeric or alphanumeric data that can be used to clone the card that was used in a transaction. If Dexter finds any of this track data, it alerts the attacker in the next message sent and the process is repeated. The attacker has the control to change the times and install additional malware or even remove Dexter altogether.

“The most unusual thing about Dexter is the small amount of public attention it has received,” says Trustwave’s Josh Grunzweig. “The issues that make POS-specific malware difficult to discuss in the industry also affects the ability of antivirus companies; without samples they are unable to provide detailed protections for specific threats.”

For more:  http://eandt.theiet.org/magazine/2013/03/turn-on-log-in-checkout.cfm

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Filed under Claims, Guest Issues, Liability, Management And Ownership, Privacy, Risk Management, Technology, Theft

Hospitality Industry Legal Risks: Hotel And Restaurant Employees Subjected To “Conditions Or Actions Intended To Humiliate, Harass Or Destroy Career” File “Constructive Discharge Lawsuits”

“…the intolerable or aggravated category (of constructive discharge) are actions intended to humiliate (e.g., demoting a vice president to janitor overnight); actions intended to harass (e.g., requiring a black employee to Hospitality Industry Termination Lawsuitswork extra hours for the same pay as white co-workers and punch a clock while others do not); actions intended to destroy the employee’s career or guarantee job loss (e.g., sudden, unexplained drops in performance ratings, skipped promotions, forced demotions, pay cuts)…”

Here’s how one state supreme court defined constructive discharge: “An employee who is forced to resign due to actions and conditions so intolerable or aggravated at the time of his resignation that a reasonable person in the employee’s position would have resigned, and whose employer had actual or constructive knowledge of the intolerable actions and conditions and of their impact on the employee and could have remedied the situation, but did not, is constructively discharged.”

Factors that may contribute to a constructive discharge claim—either singly or in combination—include whether an employee suffered:

  • a demotion
  • reduction in salary
  • reduction in job responsibilities
  • reassignment to menial or degrading work
  • reassignment to work under a younger supervisor
  • involuntary transfer to a less desirable position
  • badgering, harassment or humiliation by the employer
  • offers of early retirement or encouragement to retire
  • offers of continued employment on terms less favorable than the employee’s former status
  • a threat of violence or actual physical assault
  • a threat of termination

For more:  http://www.businessmanagementdaily.com/glp/43084/Termination-Guidelines.html

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Filed under Employment Practices Liability, Labor Issues, Liability, Management And Ownership, Training

Hospitality Industry Legal Risks: Hotel And Restaurant Management Must Conduct Criminal Background Checks To Avoid “Negligent Hiring Lawsuits”; Screening Must Be Relevant To Job Description To Avoid Discrimination

“…Hospitality employers (conduct criminal-background checks) to avoid negligent hiring lawsuits – a lawsuit from a guest or customer, for example, based on a hotel’s failure to properly screen an employee who later does Hospitality Industry Criminal Background Checks (2)harm…for each job description, (management) should prepare a memo that describes the relevance of, and need for, such information and how it is related to the particular job description…it is inconsistency in the selection of what type of background check each applicant gets that can often get employers sued for discrimination…”

According to some studies, over 90% of employers conduct criminal-background checks for some job applicants and over 70% of employers conduct background checks on all potential new hires. This includes many hospitality-industry employers. Most decision-makers want information about criminal behavior and other related data before bringing a candidate into the organization.

For example, the Equal Employment Opportunity Commission (EEOC) and some states are taking the position that, given the disproportionate rate of minorities that are arrested and convicted of crimes, an employer’s policy of disqualifying all applicants with criminal history can have a discriminatory impact on minority candidates and thereby violate Title VII’s discrimination laws.

Each state has its own position on the use of arrest and conviction records. Even when abiding by those parameters, there is still the need for a comprehensive, consistent set of procedures regarding the use of criminal history to avoid claims of discrimination. The key here is to identify by job description prior to hiring candidates, what kind of criminal background information (including how many years back) the company will look for and to ensure that the same level of background check is done for every applicant for that position.

Establishing a policy and procedure to make sure each applicant for a job description gets the same background check and having a defensible job-related justification for the relevancy and need for the information for each job position is critical to defending against future discrimination claims.

For more:  http://www.mondaq.com/unitedstates/x/225564/employee+rights+labour+relations/And+By+The+Way+Are+You+A+Criminal

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Filed under Crime, Employment Practices Liability, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management

Hospitality Industry Payment Risks: Hotel Tech Trade Association Releases “Secure Payments Framework For Hospitality”; Best Practices Advocates “Tokenization” And “Removal Of All Guest Credit Card Data From Systems”

Hospitality Industry Secure Payment Framework-page-001

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Hospitality Industry Secure Payment Framework Executive Summary-page-001

For more:  http://www.scmagazine.com/hotel-tech-trade-association-offers-best-practices-for-reducing-payment-card-risk/article/283129/

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Filed under Crime, Guest Issues, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management, Technology, Theft

Hospitality Industry Property Risks: Mississippi Hotel Fire Caused By “Lamp Cord Short”; Damage Contained By Room “Designed To Isolate Fires”

“…(the cord) was stuck under the lamp and wore out after a while…friction likely caused the shorted cord to HOTEL FIREignite, and sparks caused the carpet to catch on fire, which then spread to a couch and the wall…”

Starkville Fire Department officials confirmed the cause of a fire Thursday that destroyed the interior of a hotel room at Americas Best Value Inn & Suites on Miss. Highway 12 as electrical. SFD Training Officer Charles Yarbrough said he concluded in his investigation that the fire was started by a short in a lamp cord.

On Thursday, a shift manager at the hotel said  she called 911 after a customer came into the lobby and said he saw smoke emitting from the back of the building. The manager, who refused to be identified, said neither the room where the fire took place nor any nearby rooms were occupied at the time the smoke was first reported and there was no one in the vicinity of the fire.

Yarbrough said everything in the room, from the furnishings to the walls would have to be replaced, but said the hotel’s structural integrity was satisfactory as the rooms were designed to contain and isolate fires.

For more:  http://www.starkvilledailynews.com/node/13339

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Filed under Fire, Insurance, Maintenance, Management And Ownership

Hospitality Industry Legal Risks: Colorado Hotel And Restaurant Sued By Woman Who “Drank Bleach In A Water Glass”; Lawsuit Seeks $100,000 For “Negligence And Breach Of Implied Warranties Of Merchantability And Wholesomeness Of Food”

“…(plaintiff) suffered serious and continual medical problems, including the inability to eat effectively, persistent acid reflux syndrome, digestive problems and other symptoms…(her) relationship with her husband Hospitality Industry Injury Lawsuitsand her ability to care for her children have been affected…among the claims in the lawsuit are negligence, breach of implied warranties of “merchantability and wholesomeness of food,” loss of consortium and a violation of Colorado’s premises liability statute…”

A Basalt woman is suing the owner and operator of the Viceroy Snowmass, alleging that she was served and drank out of a glass that had bleach in it at the hotel’s Eight K restaurant. The incident happened during brunch in February 2011, according to the lawsuit by Janine and John Reichert. The suit, filed Tuesday in Pitkin County District Court, seeks more than $100,000. It lists Base Village Owner, the hotel’s owner, and Viceroy operator KHM Snowmass as the defendants.

After being seated, a waiter poured water for the Reicherts’ party from a pitcher, wrote their attorney, Alan Feldman of Aspen, in the lawsuit. “Immediately after Janine drank from the glass, she jumped up out of her seat, stating that she had drank chemicals and needed to get to the bathroom as she was going to throw up,” the lawsuit says. “Janine’s throat began to burn and swell up. … [She] raced to the restroom, where she became violently ill.”

John Reichert dipped his finger in her glass and allegedly tasted a bleach solution. The wait staff then cleared all of the glasses from the table and disposed of their contents, Feldman wrote. One Eight K employee allegedly told John Reichert that “it is typical for the water pitchers to be soaked in a solution of bleach for sterilization and that the waiter could have picked up a water jug soaking in this bleach solution, believing it to be drinking water,” Feldman wrote.

However, as Janine Reichert was talking to a poison-control operator, a manager allegedly told her that she had ingested merely the residue from the bleach left on the jug.

For more:  http://www.aspendailynews.com/section/home/156795

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Filed under Claims, Food Illnesses, Guest Issues, Injuries, Insurance, Liability, Maintenance, Training

Hospitality Industry Social Media Management: Hotel Management Must Have Policies In Place To Deal With An “Online Reputation Crisis” Including “Act Quickly, Publish Official Response, Remove Content And Rally Supporters”

Given the rapid-fire pace at which content can spread via social networks, hotels have never been more vulnerable. A seemingly minor issue can quickly escalate into a full-blown crisis, causing serious damage to Hospitality Industry Social Media Managementreputation.

After a power outage at a Texas hotel last summer, a paralyzed American war veteran called the front desk to request help from his room. For reasons not entirely clear, the clerk allegedly laughed at the request and mocked him. The guest got down by throwing his wheelchair and bags down three flights of stairs and sliding down on his backside. Then he went to straight to the media.

The incident incited a public furor that quickly spread to social networks. The hotel, its employees and the entire brand came under attack, with expressions of outrage and calls for a brand-wide boycott. Despite a solid reputation, it seemed nothing the brand could do—issue a refund and a public apology, dismiss the employee, implement staff training—would appease detractors.

  • Be prepared – Given the risks involved, a social media policy with a crisis management component must be a priority. Outline the steps to take in the event of a crisis, the people responsible, and the role social media will play in messaging. Keep a list of emergency contacts at hand, including your social media administrator.
  • Act quickly – When a crisis hits, there’s no time for bureaucracy. You must respond quickly and decisively. But first you must assess what’s at stake. Include senior management in decisions, and if appropriate seek advice from a PR firm or lawyer.
  • Publish an official response -  An official response is a critical step. It should be honest and sincere, should speak to your company’s credentials, and should be authored by a senior executive. Post it to one channel—your website or blog, a video—and direct all inquiries there.
  • Rally supporters – Call on your community of fans to help get your messaging out. Their words will have more impact and reach than official brand messages.
  • Don’t fuel the fire – Buchmeyer tells me of another incident in which a client attempted to quell a spate of angry comments on its Facebook page by deleting them and blocking detractors. This only resulted in escalating the situation. Monitor conversations and respond as appropriate, but resist the urge to sanitize. In some cases it may be better to “go dark” on social media rather than draw attention to the issue and further provoke detractors. This is especially true in the case of a tragedy or natural disaster, when communications should be restricted to community support and keeping guests informed.
  • Get the content removed – Getting damaging content taken down can be challenging, especially if it has spread to multiple channels. Go to the source and ask them to remove it, but don’t be heavy handed. At the same time, appeal to the host site to have it removed. Litigation is an option if the content is libelous, but use it as a last resort. Engage in charitable causes and community work that will garner positive content to displace the negative.
  • Reputation management—a company wide function – The media loves a scandal, and exposés of security, sanitation and safety issues are popular topics that can be highly damaging to business. Employees must be aware that social media has raised the stakes. The consequences of guest mistreatment, negligence and lapses in quality, service and security can be severe. Management must play its part by providing the training, empowerment and support necessary to ensure standards are understood and upheld.

For more:  http://www.hospitalitynet.org/news/154000320/4059521.html

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Filed under Guest Issues, Labor Issues, Liability, Management And Ownership, Privacy, Risk Management, Technology, Training

Hospitality Industry Crime Risks: New York Hotel Thieves “Smash Jewelry Cases” And Walk Out With Over $160,000 In Watches And Diamonds

“…the hotel lobby has 18 display cases…the suspects chose to smash the one filled with jewels from Jacob & Company, a designer favored by celebrities from Jay-Z to Jennifer Lopez to former New York Mayor Rudy Hotel CrimeGiuliani…(police) released images of the suspects from a surveillance camera late Sunday night, and confirmed that police are still looking for them. The men were last seen heading east on 57 Street after the heist…”

It was nearly 2 a.m. on Saturday when two men smashed a display case full of jewelry in the Four Seasons Hotel in midtown Manhattan. The men walked out of the hotel with two high-end wrist watches, a diamond chain and a pendant — together worth more than $160,000 — according to the New York Police Department. No one stopped them.

New York City hotels appear to be an easy target for criminals looking for a quick, and valuable, steal. Last year, a New Jersey man was sentenced to one-to-three years in prison for walking out of the Chambers Hotel in June 2011 with five paintings, each valued at $1,800, stuffed in a canvas tote bag. Two weeks later, the same man pilfered a $350,000 sketch by the highly regarded modern artist Fernand Leger from the Carlyle Hotel.

This is the first time a theft like this has occurred at The Four Seasons in its 20 years, according to Tiffani Cailor, a hotel spokeswoman.

“This is an unusual incident,” she said. “We are very concerned and upset over the theft.”

For more:  http://money.cnn.com/2013/02/18/news/jewelry-heist-four-seasons/

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Filed under Crime, Liability, Pool And Spa, Risk Management, Theft

Hospitality Industry Information Security Risks: Hotels, Restaurants And Retailers Accounted For 78% Of “Data Breaches By Cyber-Criminals” In 2012; “Weak Or Guessable Passwords” Is Most Common Vulnerability

“…Almost one-third of all victims had critical systems administered by a third party…Attackers had no trouble exploiting that weakness, with vulnerable remote-access systems accounting for the method of entry in 47 cybercrime in hotelspercent of the cases…in most cases, users – not software vulnerabilities – were to blame. Almost 90 percent of systems had weak or easily guessable passwords, with “Password1″ continuing to be the most common, according to Trustwave’s report…”

An analysis of breach data for 2012 found that retailers and the hospitality industry continued to command the most interest from cyber-criminals, accounting for 78 percent of the breaches documented by security services firm Trustwave.

The businesses are typically easy targets, having outsourced the administration of important servers and business data to firms that focus more on keeping the systems functioning than on security, says Christopher Pogue, director of digital forensics and incident response for Trustwave’s SpiderLabs.

“An integrator may have 1,000 customers and may do remote administration for all of them using, not 1,000 passwords, but maybe two or three,” Pogue said. “That leaves a vulnerability that can be exploited by attackers.”

For more:  http://www.techweekeurope.co.uk/news/retailer-hotel-crime-107589

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Filed under Crime, Liability, Maintenance, Management And Ownership, Privacy, Risk Management, Technology, Theft