Since April, when we last wrote concerning the tumult and uncertainty caused by the pandemic, the hospitality industry remains in a constant state of flux as hotel owners and operators consider whether and how to reopen. While some states continue the slow reopening process, others have begun to close down once again due to the continued rise of confirmed positive COVID-19 cases. In many cases, the areas where the virus was considered under control in April (such as Florida and Texas) now face growing infections, while areas hard hit in April (like New York City) are cautiously reopening as the number of reported cases fall. No one can say what will happen next week, let alone next month or next quarter, and uncertainty is the new normal.

With occupancy levels likely to remain well below historical norms for the foreseeable future, and hotel employees and their union representatives demanding that strict safety protocols be put in place before employees return to work, hotel owners and operators are preparing themselves for the next reckoning: what to do with furloughed employees that remain unneeded given the low levels of demand, but will expect sizeable severance if the furloughs persist and become a permanent layoff.