Austin News

Two furloughed hospitality industry employees, one in Lakeway and the other in Austin, are among thousands who suddenly lost their jobs last week as COVID-19 pandemic sent hotel guest rates plummeting.

Chelsea and Tom became two of almost 6,800 associates furloughed by Remington Hotels, which manages the hotels where they are employed, company Regional Director and Human Resources Partner Lucy Ledezma said in a statement to Austin News.

Chelsea graduated in May of last year with a degree in human resources and relocated from Houston to Austin for her first job as human resources manager at Hilton Garden Inn Austin Downtown.

President Donald Trump, with Vice President Mike Pence (left), during Trumps declaration of a national emergency over the COVID-19 pandemic last week | whitehouse.gov

"Chelsea is one of those young leaders that have infectious positivity," Ledezma said. "She is humble, kind and driven beyond her years."

Chelsea, like so many these days, lives pay check to pay check "since the cost of living is so high in Austin in addition to paying for her student loans," Ledezma said. "Not only has the loss of her position due to the COVID-19 had a significant impact on Chelsea’s personal finances, it has also impacted her confidence as a young professional."

Chelsea remains "hopeful that her position will be available to her very soon as she dreams of growing her career," Ledezma said.

Tom has worked for Remington Hotels since February 2015 and had been a Lakeway Resort and Spa laundry attendant "long before that," Ledezma said.

"He is our oldest employee on site and way beyond retirement age but continues to come to work every day for one specific reason: his wife."

Tom was diagnosed with cancer more than 3 years ago and since has been trying to bring in enough income to support his wife after he is gone.

"He has undergone numerous surgeries over these past three years and yet the only thing that has stood in his way from coming to work during this time is the negative impact the hospitality business has felt due to the COVID– 19 pandemic," Ledezma said.

Chelsea and Tom are two among many suffering due to the economic effects of COVID-19.

"Remington Hotels is struggling in the face of the coronavirus," Remington Hotels President and CEO Sloan Dean III said in his own statement to Austin News.

Dean's appointment as president and CEO of Remington Hotels was announced in December.

Remington, founded in 1968, is a hotel management company that also provides providing property management services. Its hospitality wing manages 86 hotels in 26 states across 17 brands.

The suffering of Remington Hotels' employees is a small portion of the larger story about how COVID-19 threatens the world's economy. Treasury Secretary Steven Mnuchin warned earlier this week that COVID-19 could drive unemployment in the U.S. to 20 percent, levels not seen since the Great Depression.

The travel and hospitality industry is asking for about $150 billion in relief.

Like the rest of the industry, Remington Hotels has been hit hard by COVID-19, which has sunk its business to "beyond depression levels" and Remington anticipates losses this year in the hundreds of millions, Dean said.

Remington Hotels expects hotels that it manages to run at 90 percent lower occupancy levels in April 2020, compared to the same month last year, Dean said.

"Most all of our 6,800 associates are furloughed," he said, adding that the entire situation is a "disaster."

Dean said assistance will need to come from the nation's top leadership.

Priorities for the entire industry were presented to President Donald Trump on Tuesday, March 17 by the American Hotel and Lodging Association.

Those priorities are emergency assistance for employees, a workforce stabilization fund from the U.S. Treasury Department, preservation of business liquidity that would include $100 billion for employee retention and rehiring, and tax relief.

"For many Americans in our sector, this health crisis will be compounded by economic hardship in the coming weeks and months," Dean said. "Congress must act now!! Time is essential as unemployment claims in hospitality will be in the millions."