Tag Archives: Hotels

by | December 17, 2012 · 7:00 am

Hospitality Industry Property Risks: Superstorm Sandy "Flood Insurance Claims" In New York And New Jersey Exceed Total For Hurricane Katrina In 2005; Federal Flood Insurance Program Only Product Available

The NFIP provides insurance for homes and businesses in flood prone areas, such as Cape May County. Created in 1969 to fill the gap after private insurers declined to continue coverage for property owners in flood-prone flood insuranceareas, it now covers more than 5.6 million policyholders in 21,000 flood-prone communities.

“The federal flood insurance product is the only product available,” 

By the end of the second day after Superstorm Sandy’s powerful storm surge overwhelmed coastal areas of New York and New Jersey, the National Flood Insurance Program had already recorded more flood claims than the total for Hurricane Katrina, a storm that devastated the Gulf Coast in 2005.

William McMahon III, president of the McMahon Agency Insurance in Ocean City, said Sandy has since far surpassed the notorious Katrina.

Katrina, he said, delivered both flood and wind damage. Sandy’s damage was primarily from flooding. Few claims, he said, have been filed for wind damage.

Not long after Katrina, Hurricane Wilma tore across southern Florida, causing massive destruction.

“Wilma was a small storm. It came across the state from the gulf blowing about 70 mph, but the wind did major damage by the time it hit Miami,” McMahon said. “The wind ripped through all the high rises with 100 mph winds.”

In the wake of those two storms, barely two months apart, insurance companies bailed out of writing property and casualty insurance policies in some areas of Florida. The state of Florida, he said, instituted its own carrier, Citizens, now the largest underwriter in the state.

Florida and Louisiana, he said, are the two most difficult states to obtain property insurance. While flood insurance is available in Florida, it is expensive, particularly close to the coast.

For more: http://www.shorenewstoday.com/snt/news/index.php/ocean-city-general-news/32569-flood-insurance-claims-from-sandy-top-katrina.html

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by | December 16, 2012 · 9:14 am

Hospitality Industry Insurance Risks: Pending Legislation Before Congress Deals With Medicare Payments, Workers' Compensation And Liability Insurance Claims

“…the Medicare Secondary Payer and Workers’ Compensation Settlement Agreements Act of 2012…deals only with workers’ compensation claims, and seeks to establish clear and consistent rules for workers’ workers comp medicalcompensation set-asides for claimants covered by Medicare…”

“…The Strengthening Medicare and Repaying Taxpayers Act…deals with issues related to the Medicare Secondary Payment Act. Specifically, it deals with mandates for providing timely information on conditional payments, penalties and statutes of limitations when claims are reported to the Centers for Medicare and Medicaid Services by insurers and self-insured and third-party payers on no-fault auto-insurance claims, workers’ compensation claims, and claims under liability insurance…”

Insurance and related industries are seeking to win support in the waning days of the current Congress for two pieces of legislation dealing with payment of injured worker claims to people whose primary insurance is Medicare. Officials of both the American Insurance Association and the Property Casualty Insurers Association of America are urging action on the bills this year.

Nathaniel Wienecke, PCI senior vice president, Wednesday asked officials of the Senate Finance Committee and the House Ways and Means Committee if it could act on the bill this year.

Currently, workers’ compensation claims that overlap with Medicare coverage are subject to lengthy, cumbersome review by the Centers for Medicare and Medicaid Services to establish the proper “set-side” coverage amounts for future medical expenses, according to PCI officials.

For more:  http://www.propertycasualty360.com/2012/12/14/insurance-reps-push-for-action-on-medicare-seconda?t=commercial

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by | December 14, 2012 · 7:05 am

Hospitality Industry Security Risks: Hotel Electronic Door Locks In "Various Stages Of Being Repaired"; "Mechanical Caps And Security Screws" Provided To Block Hackers

In October, hotel insurance-related company Petra Risk Solutions issued its hotel clients an alert headlined, “Crime Alert – Onity Guestroom Door hackers are for real.”

Onity Electronic LockIn Florida, Petra loss prevention expert Todd Seiders said he received reports that a hacker had been seen carrying a laptop and using a key card – possibly connected to the laptop – to open locked guestroom doors.

The locks on more than 1 million guestroom doors are in various stages of being repaired, following the revelation this summer that they may be vulnerable to hackers.

The New York Marriott Marquis, the biggest hotel in Manhattan, for instance, just completed updating all of its nearly 2,000 door locks. The hotel is one of thousands of properties with guestroom locks manufactured by Onity, a division of United Technologies. An Onity website also shows Sheraton, Hyatt, Holiday Inn, Fairmont, Radisson and other well-known hotels from Paris to Perth as also having its locks updated.

The hacking tool, according to Petra’s alert, could be made for about $50 in easy-to-acquire electronic parts.

“Please train and notify your hotel staff that these burglaries are spreading across the country,” Petra’s alert cautioned hoteliers. “Hotel staff should be vigilant while they are on the guest floors and paying attention to guests walking through hallways…Take time to watch guests walking through your hallways to ensure they are going to a room and entering it. Be very suspicious of someone carrying a laptop or small bag wandering the hallways. Greet guests and ask them if they need assistance.”

Onity did not immediately return an e-mail seeking comment about the issue. But in a statement updated for December on its website, Onity says that as of Nov. 30, it has shipped hardware to fix 1.4 million hotel door locks. The hardware includes mechanical caps and security screws that “block physical access to the lock ports that hackers use to illegally break into hotel rooms.”

For more:  http://www.usatoday.com/story/hotelcheckin/2012/12/14/hotels-fixing-flaw-that-made-room-locks-vulnerable-to-hackers/1769081/

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by | December 7, 2012 · 8:59 am

Hospitality Industry Legal Risks: Florida Hotel And Spa Sued For "Sexual Abuse" Of Woman During Massage; Masseuse Used "Inappropriate Draping Techniques" And Contact

“…The suit alleges masseuse failed to use appropriate draping techniques and within 10-15 minutes, Hospitality Industry Lawsuitshe was completely naked…he proceeded to “massage” her exposed breast and lower belly, saying it was a technique in which he specialized, according to her attorney…”

A woman and her attorney have filed a lawsuit against a Miami Beach spa after she claimed she was sexually abused by a masseuse. According to the lawsuit filed in Miami-Dade County Circuit Court early Thursday morning, the unnamed woman went to the Sanctuary Hotel on South Beach with her husband on Feb. 20th and purchased a massage at the Sanctuary Spa & Salon through Groupon.

According to the suit, Fraga continued the sexual conduct by rubbing between her buttocks, legs and private parts and placed his penis in her hand. The woman has sued the Sanctuary Hotel Group, Inc.

For more:  http://miami.cbslocal.com/2012/12/06/lawsuit-woman-alleges-sex-abuse-by-masseuse-at-sobe-spa/

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by | December 3, 2012 · 6:58 am

Hospitality Industry Health Risks: Hotel Employee Causes Chemical Reaction By "Accidentally" Mixing Pool Chemicals, Forcing Evacuation; Hazmat Team Sent For Clean-Up

“…an employee had accidentally poured chlorine into a container of muriatic acid, causing a chemical chlorine gas leakreaction…since chlorine was diluted and poured down a drain by an employee, the Region of Peel’s hazardous materials team has also been sent to the hotel…”

A mishap with pool chemicals has forced some of the staff and guests at the Hilton Garden Inn on Traders Blvd. E. to be evacuated from the hotel this morning.

Everyone on the first floor of the building was evacuated as the Mississauga Fire and Emergency Services Department and police arrived. The second floor has now been evacuated after guests reported smelling chlorine. A Mississauga Transit bus has been sent to the hotel at 100 Traders Blvd. E., just east of Hurontario St.,  to accommodate those who have been forced outside. A decontamination area has been set up to help with the clean-up.

An ambulance has taken one person to Credit Valley Hospital.

For more:  http://www.mississauga.com/news/article/1547378–hotel-evacuated-after-pool-chemical-mix-up

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by | December 2, 2012 · 7:15 am

Hospitality Industry Property Risks: Texas Hotel "Stairwell Fire" Forces Evacuation Of Nearly 400 Guests; Building Remains Without Power

“…Dallas Fire Rescue said the fire happened in the south stairwell on the third floor…electricity was shut off Hotel fire and smoke damageand the hotel remains without power…”

Hotel management said 387 people were listed as guests at the time of the fire and everyone evacuated.

A Downtown Dallas hotel fire caused the evacuation of nearly 400 guests on Saturday afternoon.

One person was taken to the hospital for further evaluation of possible burns.  Their name and condition have not been released. Paramedics treated some other people on scene for non-life threatening issues.

As of 5:30 p.m., the fire is extinguished but electricity has been shut off to the hotel.

Management is now allowing all guests to gather their belongings and transfer to another local hotel. Investigators are searching for the hotel fire’s cause.

For more:  http://www.nbcdfw.com/news/local/Hundreds-Evacuated-In-Downtown-Dallas-Hotel-Fire-181695311.html

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by | December 1, 2012 · 7:18 am

Hospitality Industry Legal Risks: Hotels Warned By Federal Trade Commission (FTC) For "Deceptively Low" Estimates Of Room Costs; Undisclosed "Resort Fees" May Violate Law

 “One common complaint consumers raised involved mandatory fees hotels charge for amenities such as newspapers, use of onsite exercise or pool facilities, or internet access, sometimes referred to as ‘resort fees.’  FTCThese mandatory fees can be as high as $30 per night, a sum that could certainly affect consumer purchasing decisions.”

The Federal Trade Commission has warned 22 hotel operators that their online reservation sites may violate the law by providing a deceptively low estimate of what consumers can expect to pay for their hotel rooms.

The warning letters cited consumer complaints that surfaced at a recent conference the FTC held on “drip pricing,” a pricing technique in which firms advertise only part of a product’s price and reveal other charges as the customer goes through the buying process.   The warning letters also state that consumers often did not know they would be required to pay resort fees in addition to the quoted hotel rate.

“Consumers are entitled to know in advance the total cost of their hotel stays,” said Federal Trade Commission Chairman Jon Leibowitz.  “So-called ‘drip pricing’ charges, sometimes portrayed as ‘convenience’ or ‘service’ fees, are anything but convenient, and businesses that hide them are doing a huge disservice to American consumers.”

The letters strongly encourage the companies to review their websites and ensure that their ads do not misrepresent the total price consumers can expect to pay.

For more:  http://www.ftc.gov/opa/2012/11/hotelresort.shtm

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by | November 29, 2012 · 8:47 am

Hospitality Industry Guest Satisfaction: Hotels Must Develop And Facilitate A "Mobile Device Strategy" That Pays "Careful Attention To Guests' Needs"

“…Given the rapid move to mobile devices by travelers, (hotels must) develop a “mobile strategy” that facilitates the use of mobile devices to make sure a hotel is noticed during a mobile search–and gets the business. Hotels must find a way to become part of guests’ mobile ecosystem, in part by paying more careful attention to guest needs…”

Two new publications from the Cornell Center for Hospitality Research (CHR) at the School of Hotel Administration outline technology issues and the effects of social media on the hospitality industry. A study by Cornell’s Chris Anderson confirms what hospitality operators have long suspected–social media reviews drive hotel reservations.

One particular value of analytics is that they can highlight and resolve problems with guest satisfaction that may not show up in conventional guest surveys. Hotel operators are aware that their property needs to appear near the top of web search results, and analytics can present techniques for making this happen, such as connecting the hotel with local attractions or events.

  • First, he documented the increasing influence of TripAdvisor, as the number of reviews consulted by consumers prior to booking a hotel room has steadily increased over time.
  • Second, an analysis of transactional data from Travelocity illustrated that a 1-point increase on Travelocity’s 5-point scale allows the hotel to increase its price by 11.2 percent and still maintain the same occupancy or market share.
  • Third, by matching ReviewPRO’s Global Review IndexTM with STR’s hotel sales and revenue data, Anderson’s analysis finds that a 1-percent increase in a hotel’s online reputation score leads up to a 0.89-percent increase in a hotel’s average daily rate (ADR), as well as an occupancy increase of up to 0.54 percent and up to a 1.42-percent increase in revenue per available room (RevPAR).

Perhaps most critically, customer reviews have now become a major discriminating point for customers’ determination of a hotel’s quality. Whereas price used to be used for that purpose, customers now put a greater weight on user-generated content on social media sites. Surprisingly, the fashion industry may be a model for how to use social media to promote hotel sales. People like to hear comments on how they look in a new outfit, so the issue is how to translate that kind of interaction to a restaurant meal or hotel stay.

For more:  http://www.equities.com/news/headline-story?dt=2012-11-29&val=770928&cat=service

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by | November 27, 2012 · 6:44 am

Hospitality Industry Property Risks: Florida Hotel Room Fire Caused "Box On Top Of Stove Burner"; Water Damage From Sprinkler System

“…someone had placed a box on top of a stove burner and then turned the burner on. The box caught fire and activated the hotel’s sprinkler system, which put out the fire…the sprinkler system drenched the top floor and water seeped down to the first floor, which could have compromised the hotel’s electrical systems…”

The Value Place hotel at the corner of Racetrack Road and Eglin Parkway was evacuated after a small fire started in a room on the second floor about 4:20 p.m. Monday.

Firefighters made sure everyone was cleared out of the hotel and then stayed at the scene until about 9 p.m. to make sure there were no immediate electrical issues that could start another fire.

The hotel’s occupants were sent to other hotels in the area overnight until an electrician can come today to make sure the electrical system is working properly.

Most of the damages the hotel sustained were from the sprinkler water, although there was a small amount of damage from the fire, Wagner said.

For more:  http://www.nwfdailynews.com/local-news/hotel-evacuated-after-fire-1.55276

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by | November 19, 2012 · 7:26 am

Hospitality Industry Legal Risks: Michigan Hotel Sued By EEOC For "Terminating Pregnant Housekeeper"; Employers May Not Exclude Pregnant Women Based On Their "Concerns About Safety Of Unborn Child"

“…Ramin fired a housekeeper shortly after it learned of her pregnancy. The company stated that it could not allow her to continue to work as a housekeeper because of the potential harm to the development of her baby…”

The U.S. Equal Employment Opportunity Commission (EEOC) filed a lawsuit today charging that Ramin, Inc., a Comfort Inn & Suites franchise owner in Taylor, Mich., violated federal law when it terminated a pregnant housekeeper because of her pregnancy.

Title VII of the Civil Rights Act of 1964, as amended by the Pregnancy Discrimination Act, protects female employees against discrimination based on pregnancy, and the Supreme Court has expressly rejected the notion that an employer may exclude pregnant women from employment based on its own concerns about the safety of the unborn child.

The EEOC seeks injunctive relief to prevent Ramin from discriminating against pregnant employees or applicants in the future, as well as monetary relief on behalf of the victim.  The EEOC filed suit after first attempting to settle the case through its conciliation process.

“Pregnancy discrimination is rarely subtle,” said Lauren Gibbs Burstein, attorney in the EEOC’s Detroit Field Office.  “Employers may not bar pregnant employees from work because of outdated myths or stereotypes.  The EEOC will vigorously defend the rights of pregnant workers to provide for their families by remaining employed.”

For more:  http://www.eeoc.gov/eeoc/newsroom/release/11-13-12c.cfm

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