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Hotel Development Insider

NEWS AND UPDATES FROM THE HOTEL DEVELOPMENT INDUSTRY
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Hoteliers forced to shift mindsets & strategies.....

All industries have been impacted due to COVID-19, forcing all of us to examine and alter our daily lives and making businesses desperately look for new revenue streams. The travel industry has especially taken a hit and it will be sometime before we return to "normal" levels again. Sadly, many businesses will not make it through this pandemic.


Here's a great article about how the Peabody Hotel in Memphis is thinking outside of the "normal" box to drive revenues:


Peabody shifts service menu, including day rates catered to remote working


The toll of the coronavirus pandemic on the hospitality industry has slashed occupancy rates at Memphis hotels and forced operators to come up with different ways to woo guests.

Memphis Tourism president and CEO Kevin Kane said April 2 that Memphis’ hotel occupancy rate plummeted to its lowest of the year at 30.2% on March 22 and hit 30.9% the week of March 28. Similarly, The Peabody Hotel's occupancy rates dipped between 10% to 30% by March 21, according to Peabody director of marketing Kelly Brock. Now, the hotel is pulling out all the stops to try and bring in guests. The Peabody recently started offering day rates of $59, aimed at providing space from 8 a.m. to 6 p.m. for those working remotely. Overnight rates currently stand at $99 and are intended to target individuals who are putting in long work hours who need a place to rest close to Downtown, according to the hotel's website. Brock said normal room rates around this time of year are $200 and up. “The COVID-19 pandemic has forced everyone within the hospitality industry to think creatively to find new and innovative ways to provide our services to our customers,” Brock told MBJ on April 2. The Peabody is reaching out to essential industries, such as health care, government, and transportation, Brock said. The in-room amenities for guests include high-speed internet and room service discounts. The hotel is also waiving its service fee. “We’ve seen locals take advantage of our offers, mostly within the transportation and shipping industries, and individuals who, for example, need a private workspace for conference calls," Brock said. "Our goal is to be a resource within the community by providing a home away from home for workers who need to travel for their jobs or are unable to be with their families."


Article written by: Corey Davis, Reporter for the Memphis Business Journal

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