South Florida hotels continue to get slammed by the coronavirus impact.
South Beach Hotel Group, led by longtime Miami Beach hotelier Alan Lieberman, is the latest casualty. The company laid off over 700 employees at 13 of its 16 boutique Miami Beach hotels, according to a WARN notice filed with the state.
The list includes 214 people at the 188-key Catalina Hotel at 1732 Collins Avenue, 79 people at the 100-key Harding Hotel at 210 West 63rd Street, and 64 people at the 96-key Riviera Loft Hotel at 2000 Liberty Avenue.
Hotel occupancy in Miami now stands at about 20 percent, a drop of nearly 76 percent from the same time a year earlier, according to the latest report from hotel research firm STR. Revenue per available room is hovering at about $18.
This week, the Trump Organization’s Mar-a-Lago resort furloughed 153 people. Trump National Doral also furloughed 560 people.
The 100-room Standard Spa in Miami Beach also laid off 236 people.
Earlier this month, Gov. Ron DeSantis issued a statewide stay-at-home order, requiring all nonessential businesses to shutter. The order followed previous decisions by individual counties and municipalities, including in some cases, ordering hotels to close.
The hotel industry is also facing over $4 billion in debt payments on CMBS loans. The loans are harder to restructure than conventional loans and are more likely to head to foreclosure, according to industry experts.