Hotels Provide Relief to Franchisees — but Some Say It’s Not Enough
Partner Yariv Ben-Ari was quoted in The Real Deal discussing the current state of the hotel market during the time of COVID-19. As hotel chains work to take care of the franchisees around the United States, the process is multi-layered and for some it may not be enough
Yariv discussed with The Real Deal that "the pandemic has battered every hotel around the world, and, for the most part, it appears franchisors have taken the necessary steps to help owners. Some companies have suspended contributions to furniture, fittings and equipment reserve funds that franchisees are required to maintain for things like furniture replacement." But Yariv noted that, "franchisees that are struggling and need more assistance should contact their franchisors sooner rather than later."
As the majority of hotels in the U.S. are franchised, and owned by small businesses, many will not have the same resources as their larger corporate counterparts.
“It’s better to have a dialogue now and work with them,” he said. “I think everybody recognizes the pandemic is affecting everybody individually on a human basis, and people are treating each other positively on a business and personal basis.”