Given the impact COVID-19 has had on its business, Hyatt Hotels Corp. announced Tuesday it will be suspending operations at some hotels, implementing temporary furloughs and reducing pay and work at the corporate level from April 1 through May 31. According to Hyatt, it will furlough or significantly reduce the schedules of two-thirds of its U.S. corporate employees.
Corporate employees will not face any changes in eligibility for health care or other benefits but will be able to file for unemployment benefits during the two-month period. For furloughed employees who were on Hyatt’s health-care plan, the company said it is actively taking steps to protect and fund benefit coverage—including employee benefit premiums—for up to two months. Temporarily furloughed employees will be eligible for unemployment benefits and will be encouraged to use personal-time-off days to cover pay during the furlough period.
Hyatt also said it is in the process of setting up a global Hyatt Care Fund, seeded by 100 percent of Hyatt leadership team’s salary reductions as an initial contribution. Through the end of May, President/CEO Mark Hoplamazian and chairman of the board Tom Pritzker will forgo 100 percent of their salaries and Hyatt’s senior leadership team will take a 50 percent salary cut. The company said proceeds of the fund will be distributed to the employees “with the most pressing financial needs due to loss of income,” but did not offer any other specifics.
As of Dec. 31, 2019, Hyatt’s portfolio consisted of more than 900 properties in 65 countries.