by | August 26, 2010 · 2:16 pm

Hotel Industry Liability Risks: Hotel Guests’ 4-Year Old Child Finds “Condom” In Room And Family Has Retained Attorneys To File Suit Against Hotel Owners

Jones has since filed a report with the Atlanta Police Department and the family engaged lawyers to negotiate a settlement with the hotel. If no settlement is reached, the lawyer plans to file suit.

Wyndham Hotels said it was “disturbed to learn of the allegations,” but that the hotel in question was individually owned and operated. It has been sold since the incident occurred, the hotel chain said.

A 4-year-old boy was being tested for sexually transmitted diseases after he found a used condom in an Atlanta hotel room and tried to blow it up, thinking it was a balloon, his family said.

The boy found the condom in the sheets of a bed in the hotel where his family was staying, according to his grandmother Carmen Jones.

According to the statement, she then called hotel management and asked for alcohol and mouthwash for her grandson. The hotel manager came to the room, put on latex gloves and took the condom from her, citing “company policy.”

“He had his tongue in it,” Jones said in a statement released by her lawyers. “I immediately took it out of his mouth.”

The boy sickened and developed sores on his tongue not long after, Jones said. She took him to Scottish Rite Hospital in Atlanta to have him tested for sexually transmitted diseases, including herpes and HIV, a local CBS affiliate reported.

He had “little white blisters all on the top of his mouth, on his tongue, inside the mouth, inside the lip, the bottom lip. It was all over,” Jones told the CBS affiliate.

For more:  http://www.aolnews.com/nation/article/boy-tested-for-stds-after-finding-condom-in-atlanta-hotel-room/19609907

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by | August 25, 2010 · 5:26 am

Hospitality Industry Risk Management: Management Must Train Staff To HALT If They Are “Hungry, Angry, Lonely And Tired” To Prevent Accidents, Mistakes And Bad Public Relations With Guests

 

"...Whenever (hotel employees) are hungry, angry, lonely or tired...(they) need to stop, HALT! In this state of being hungry, angry, lonely and tired (employees) are much more vulnerable to getting... buttons pushed...AND BAD THINGS ARE MORE LIKELY TO HAPPEN... "

Many hotel guests have all of these conditions going on upon arrival at the front desk. They have traveled a great distance, they are tired, and they may have not eaten in hours and as a result are angry or grumpy.  Any delays or unpleasant encounters will send this guest into a full fledge melt down going off on employees who may also be vulnerable. 

 In your hotel consider what investment goes into getting a guest to call and book a stay at your location?  How much advertising was done?  How many staff hired? How much time and energy in training with staff, operators and front-line?

How much patience and time was given to gain that guest trust?  Your building preparations and maintenance of the property? What did it take to have them call and give you their credit card and put their money into your hotel or establishment? 

Considering this investment is significant when in a moment that guest can be turned away by a negative encounter with one of your employees or managers. 

What took months and perhaps thousands of dollars to build can be lost in a moment. Your hotel and its ultimate success is only as good as its weakest employee. That might be a scary thought!  But even the best employee can be worn thin and not recognize their vulnerable condition.

For more:   http://www.4hoteliers.com/4hots_fshw.php?mwi=5338

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by | August 24, 2010 · 6:46 am

“Hospitality 2015” From Deloitte: Hotel Ownership And Management Must Position Companies For Future Success, Profitability And Risk Reduction

CLICK ON PICTURE TO OPEN: "Hospitality 2015: Game Changers Or Spectators" From Deloitte

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by | August 23, 2010 · 4:30 am

Hospitality Industry Trends: Hotel Ownership Should Consider “Green Lodging” Certifications As Healthier And Safer Business Practices

“… it creates a healthier environment for those working at a hotel, motel or bed and breakfast as more of the cleaning supplies use fewer chemically infused ingredients, fewer linens are laundered, cans, bottles and other goods are recycled and lighting, entertainment, and heating, ventilation and air conditioning systems become more energy saving and efficient…”

“Growing numbers of consumers, including families and conference planners, want to know that the hotel where they plan to stay is ‘green,’ ” says Amey Marrella, commissioner of the state Department of Environmental Protection, who this past week announced that the state just certified its 15th “green lodging.”

Being green, says the commissioner, can include increased energy efficiencies, water-use reductions or reducing, reusing and recycling materials found in a hotel, motel or bed and breakfast.

In addition, Marrella says being a certified green lodging hotel can provide that hotel or motel with a competitive marketing tool, in addition to the savings provided by reduced energy use.

By “greening a hotel,” the institution can become more efficient, become friendlier to its surrounding environment and, say DEP officials, bolster its bottom line.

For more:   http://www.theday.com/article/20100822/BIZ02/308229886/-1/BIZ

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by | August 22, 2010 · 8:17 am

Hotel Industry Fire Risks: Hotel Managment Must Have “Properly Maintained Fire Escapes, Exit Lights, Fire Extinguishers And Smoke Alarms”

“…inspection reports obtained by the newspaper showed the apartments did not have properly maintained fire escapes, exit lights, fire extinguishers or smoke alarms…”

The lawsuit filed by the families of Gerardo Reyes Perez and Humberto Hernandez Vanegas, who both died in the apartment building fire, was dismissed with prejudice, according to online court records. A dismissal with prejudice means the lawsuit cannot be refiled against building owner Corazon Peterson, also known as Corazon Moen, and her insurance companies.

A second wrongful death lawsuit has been dismissed against the owner of the Independence Hotel Tap that burned in February 2009, killing three men. The suit was dismissed after a “minor” settlement.

But the amount of the settlement is unknown. Judge John Damon approved an order to seal documents related to the case, including the settlement paperwork, and Moen as well as attorneys representing both sides of the suit did not respond to calls for comment.

The Hotel Tap building failed its last three fire inspections prior to the blaze that also killed Ronald Stuart Beck Sr. His family also filed a wrongful death suit, which was dismissed in June.

Moen denied the failed inspections when questioned by the Winona Daily News last year, saying smoke alarms and fire extinguishers were in the building at the time of the fire. But inspection reports obtained by the newspaper showed the apartments did not have properly maintained fire escapes, exit lights, fire extinguishers or smoke alarms.

The families of Perez and Vanegas contended in their lawsuit that none of the issues were addressed at the time of the February blaze, saying the building was in “general disrepair.”

The suit specifically cites anguish experienced by Perez’s brother Jose Reyes Perez and sister Blanca Morales. The pair were “at the scene of the blaze at its pinnacle and could only watch as the building burnt uncontrollably, and knowing their brother was inside, unable to escape,” the suit states.

Moen in her answer filed in March acknowledged the failed inspections but said the problems were fixed before the fire.

For more:  http://www.winonadailynews.com/news/local/article_34815248-ada3-11df-bd70-001cc4c002e0.html

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by | August 21, 2010 · 8:50 am

Hotel Industry Risks: Hotel Managers And Employees Must Spot Prostitution And Drug Risks When Local Guests Book Rooms For One-Week Or More

Police have started a program to educate hotel employees on how to spot prostitutes and drugs. One warning sign” When a guest with local address books a hotel room for seven or eight days, the Inquirer says.

Hotel prostitution became a high-profile last year when a woman who had advertised erotic services in a Craigslist ad was beaten and fatally shot at close range at the Boston Marriott Copley Place. Police ultimately arrested Philip Markoff, a medical student who was dubbed the Craigslist Killer, for her killing and other robberies of women in hotels. Markoff committed suicide in jail earlier this week.

Crime has been climbing at airport hotels over the last six to eight months, and Capt. Dan MacDonald III says that it can be linked to prostitution.

“This violence has resulted in numerous robberies, assaults and one homicide all directly related to prostitution going on at Philadelphia airport hotels,” the Daily News quotes him as saying.

Philly isn’t alone in fighting prostitution activity in airport hotels

For more:   http://travel.usatoday.com/hotels/post/2010/08/philly-police-bust-airport-hotel-prostitution-ring/108959/1

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by | August 20, 2010 · 5:40 am

Hospitality Industry Cybercrime Risk Management: “Cloud Computing” Providers Will Carry “Cyber Insurance To Mitigate The Risk Of Data Breaches Or Unexpected Downtime”

The manager of a fine hotel would never allow an electrician or plumber to work without being insured; it’s standard fare on service contracts in the physical world. Not so in cloud computing, where provider coverage in the form of cyber insurance is far from a given. This undoubtedly will change as businesses push providers to share the risks of a data breach or unexpected downtime, experts said.

Such large cloud computing providers as Salesforce.com Inc. do carry cyber insurance to mitigate the risk of data breaches or unexpected downtime, but “smaller providers are not carrying insurance and have no plan to [do so] until the larger customers push back and say, ‘You’re in our risk profile now,'” said Drew Bartkiewicz, vice president of technology and new media markets at The Hartford Financial Services Group, a cyber insurance company based in New York.

For the cloud computing model to work, cloud customers, as well as cloud providers, need to share the risk, according to Drue Reeves, director of research for the Burton Group in Midvale, Utah. If a provider were wholly responsible for the data of hundreds or thousands of tenants, it simply wouldn’t be able to buy enough insurance to cover the liability. To protect themselves in this risky situation, cyber insurers generally cap their policies at $10 million or $15 million, forcing providers and large customers to keep shopping, experts said.

For more:  http://searchcio.techtarget.com/news/2240021040/Cyber-insurance-mitigates-the-risk-of-data-breaches-in-cloud-computing

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by | August 19, 2010 · 10:16 am

Hospitality Industry Employment Risks: Hospitality Management Must Have “Valid” Reasons To Fire Employees

  • Make sure that you have a valid reason for firing (or laying off) the employee. Some invalid reasons include: retaliation, complaining about OSHA violations, discrimination, alien status, and any violation of public policy.
  • Keep it confidential: a company-wide Eblast is probably not the best approach to alerting others in the company of the employees’ situation. Rather, only telling those individuals that need to know is the best approach to ensuring that the employee does not hear about his firing before it happens.
  • Plan ahead: sounds simple enough, but by considering all the legal requirements you need to comport with before firing the employee, you will also alleviate a lot of legal concerns that may occur post-firing. This may include: severance offers, monies due, terms in the employment contract, company policies, etc.
  • Keep a paper trail: keeping copies of performance reviews, relevant correspondence, and other personnel documents will help protect you should there be a lawsuit later on.
  • The employee should not be completely surprised by the firing or lay-off. Whether it is keeping employees abreast of the struggling finances of the company, or alerting the worker to poor job performance, there should be a dialogue before the employment termination.

Although a majority of the American workforce is based on “at will” employment, essentially meaning that the employer-employee relationship can be severed at any time, there are still some viable concerns over a wrongful termination suit in any situation. Making sure you have a valid reason for firing an employee, and planning the conversation ahead of time will help with the actual firing and protect your company from many of the legal issues that follow.

In the end, honesty is almost always the best policy, and usually appreciated as the employee can take your reasons with them as they job hunt.

For more:  http://www.reuters.com/article/idUS348304971720100817

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by | August 18, 2010 · 7:28 am

Hospitality Industry Health Care: Smaller Hotel Owners Will Struggle With “Medical Loss Ratio” And Must Find Hospitality Industry Health Care Insurance Specialist

The Affordable Care Act sets a minimum threshold for what’s known as the “medical loss ratio” — the percentage of premium dollars that go into medical care (a “loss” from Wall Street’s view) rather than into overhead or profits. For plans sold to small businesses or directly to individuals, that ratio must be at least 80 percent; for plans sold to large groups, it must be at least 85 percent.

For big insurance companies that sell predominantly to big employers, the medical loss ratio shouldn’t be hard to meet. With their economies of scale, these insurers and employers together provide coverage at relatively low administrative cost (although, it should be noted, Medicare’s overhead is even lower). But smaller insurers that deal primarily with individuals or small businesses will have a tougher time. Among other things, they typically lose 8 percent of premiums on commissions to agents and brokers who sell policies on their behalf. (Once the insurance exchanges exist, much of that cost will disappear.) These are also the insurers most likely to bilk consumers, since individuals buying coverage on their own typically lack the knowledge — or ability — to bargain as shrewdly as corporate benefits managers do. (The exchanges should also help with improved information and bargaining leverage.)

There’s leeway in the rule in two key places. The law doesn’t dictate a precise formula for calculating the medical-loss ratio. It’s up to the administration which “care management” activities count as medical care, whether taxes should be part of the calculation, and the extent to which carriers can average out the ratio among different plans. And while the law calls for the requirement to take effect starting in January 2011, the Department of Health and Human Services has the authority to phase it in; Sebelius could, for instance, set the floor at 70 percent for 2011 and then gradually ratchet it up until 2014. Some insurance and employer lobbyists have urged the administration to move slowly, lest insurers unable to meet those requirements go out of business. Then again, insurers that can’t meet those requirements are, by definition, less efficient.

For more:   http://www.tnr.com/blog/jonathan-cohn/77080/get-ready-sebelilus-v-insurers

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by | August 16, 2010 · 8:28 am

Hospitality Industry Insurance Risk Management: Las Vegas Hotel Has Insurance Policy That Fails To Name Hotel As “Additional Insured”, Complicating Payment Of A Submitted Claim For Structural Damage

The floor collapsed and dropped almost a foot, resulting in damage to the structures of both the lounge and the hotel.

The Luxor also sought compensation as an “additional insured.” The lease between the casino and developer required the latter to name Luxor as an additional insured on all policies. No doubt the Luxor assumed (that dangerous word!) that this language covered its exposure to loss.

However, the developer’s insurance policy restricted the coverage of an additional insured. Luxor’s entitlement was limited to indemnification for money it paid to people injured by the developer’s acts or omissions. The casino was not entitled to compensation for its own losses…

The casino invoked the Unfair Insurance Claims Practices Statute, a law adopted by numerous state legislatures.

The Luxor Hotel & Casino Hotel contracted with a developer to construct and operate a restaurant called the Cathouse Lounge (nothing is subtle in Vegas) on the mezzanine level. The developer gutted the space, made structural modifications and installed new fixtures and equipment.

One night during Cathouse’s third month in operation, while a large crowd was enjoying good food and fun ambiance, a portion of the structure began to buckle. The floor collapsed and dropped almost a foot, resulting in damage to the structures of both the lounge and the hotel. The lounge was evacuated immediately. Thereafter the county Department of Building Services ordered Luxor to close both the Cathouse and damaged portions of the hotel pending repairs. Luxor hired an expert to determine the cause of the floor’s failure. Turns out the renovations were insufficient to support the sizeable number of people the lounge attracted.

Both Luxor and the developer paid to repair the structural deficiencies and for damage to their respective property. The Cathouse reopened in three weeks and submitted a claim to its insurance company. The Luxor also sought compensation as an “additional insured.” The lease between the casino and developer required the latter to name Luxor as an additional insured on all policies. No doubt the Luxor assumed (that dangerous word!) that this language covered its exposure to loss.

However, the developer’s insurance policy restricted the coverage of an additional insured. Luxor’s entitlement was limited to indemnification for money it paid to people injured by the developer’s acts or omissions. The casino was not entitled to compensation for its own losses. Yikes!

This is a very significant limitation. Luxor was seeking compensation for costs of repairing structural damage to its own facility, replacing its own destroyed property and interruption of its business. The insurance company denied the claim based on the indemnification-only coverage, and the court upheld the denial. This was not the plan Luxor had in mind when it included the requirement that the casino be listed as an additional insured in the developer’s lease.

But lawyers are clever folks and Luxor was well-represented. The casino invoked the Unfair Insurance Claims Practices Statute, a law adopted by numerous state legislatures. This act requires, among other consumer protection provisions, that insurance companies respond to claim letters within 30 days of receipt. The insurance company in the Luxor case waited months before acknowledging the hotel’s claim. The penalty for violation is mandatory payment of the claim. This is true even though the policy does not otherwise cover the claim. So the court awarded Luxor the money it sought. Sometimes the back door can be a great alternative.

For more:   http://www.hotelworldnetwork.com/legal/read-your-insurance-contract-closely-then-read-it-again

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