Major hotels in South Florida are reporting layoffs of hundreds more employees, as the economic effects of the coronavirus pandemic continue to take a toll on the tourism industry.
The 653-room bayfront InterContinental Miami at 100 Chopin Plaza laid off 377 employees, according to a WARN Notice filed with the state.
The Hilton Singer Island Oceanfront/Palm Beaches resort at 3700 North Ocean Drive in Riviera Beach laid off 88 employees, according to its WARN notice. Crestline Hotels & Resorts, based in Fairfax, Virginia, owns the waterfront hotel.
The layoffs add to more than 1,150 at other major South Florida hotels, according to the Florida Department of Economic Opportunity’s website. Most recently, the 326-room Mandarin Oriental Miami at 500 Brickell Key Drive furloughed 488 employees. Four Seasons at The Surf Club Hotel and Private Residences at 9011 Collins Avenue in Surfside furloughed 360 people.
Earlier this month, Florida Gov. Ron DeSantis issued an executive order requiring people to stay at home, except for essential businesses. The order followed previous decisions by individual counties and municipalities to close down non-essential businesses, including in some cases, hotels. Two weeks ago, Monroe County prohibited tourists from entering the Florida Keys.
The mass layoffs began in March. Among them, Brightline, the high-speed train service that runs from Miami to Fort Lauderdale and West Palm Beach, said it was laying off 250 employees after it suspended operations, according to a spokesperson.
The hospitality industry in South Florida has been particularly hard hit. Earlier this month, the 221-room Four Seasons Hotel Miami at 1435 Brickell Avenue furloughed 312 people.
The hotel industry is also facing over $4 billion in debt payments on Collateral Mortgage-Backed Securities (CMBS) loans. The loans are harder to restructure than conventional loans and are more likely to head to foreclosure, according to industry experts.