Faena Hotel, Eau Palm Beach Resort among latest to lay off hundreds

Faena plans to lay off 261 employees between August and September

Miami /
Jul.July 30, 2020 02:30 PM
Faena Hotel Miami Beach and Eau Palm Beach (Faena, Eau Palm Beach)

Faena Hotel Miami Beach and Eau Palm Beach (Faena, Eau Palm Beach)

UPDATED, July 31, 4:50 p.m.: South Florida hotels continue to lay off hundreds of employees due to the coronavirus pandemic, including high-end properties such as Faena Hotel Miami Beach and Eau Palm Beach Resort & Spa.

Faena Hotel, at 3201 Collins Avenue in Miami Beach, will lay off 261 employees, according to a WARN notice filed with the state. That includes permanent layoffs of 163 employees on Aug. 30, and layoffs of another 50 employees Sept. 8. Faena Group and Len Blavatnik’s Access Industries own the 168-room beachfront hotel, which is part of the Faena District.

Eau Palm Beach Resort & Spa, at 100 South Ocean Boulevard in Manalapan, laid off 295 employees. In a letter to the state, the hotel said that the layoffs, furloughs and reduction of hours that began on March 25 may continue beyond six months and could become permanent. The 310-key oceanfront hotel reopened on July 1, according to its website.

At Kimpton Epic Hotel at 270 Biscayne Boulevard Way in Miami, 168 employees were let go, according to a WARN notice filed with the state. Ugo Colombo’s CMC Group developed the 411-key hotel.

Brookfield Properties’ Hilton Fort Lauderdale Marina, at 1881 Southeast 17th Street, extended the furlough of 167 employees, according to a notice filed July 16. And the Hilton Fort Lauderdale Beach Resort, at 505 North Fort Lauderdale Beach Boulevard, extended the furlough period of 79 employees, and eliminated the roles of 29 employees.

In the Hilton Fort Lauderdale Marina’s WARN notice, the hotel referred to the “constantly changing” orders and regulations. “The hotel is responding and adapting to these developments as much as reasonably and feasibly possible. Contrary to our expectations, government orders continue to impose substantial limitations on our operations at this location including social distancing guidelines, limits on large public gatherings, and capacity limitations,” the letter states.

It’s not just the hotel industry that’s slashed its workforce since March. Calder Casino, at 21001 Northwest 27th Avenue in Miami Gardens, laid off 254 employees. Ruth’s Chris Steak House in North Palm Beach laid off 43 workers, according to WARN notices filed with the state.

In early July, casinos were ordered to close again in Miami-Dade County after the number of Covid-19 cases rose following a phased reopening of non-essential businesses countywide.

Tens of thousands of workers in South Florida have been laid off or furloughed since March. Many of those layoffs became permanent following reopening, including at the Fontainebleau Miami Beach, the largest hotel in Miami-Dade.

Already grappling with losses since March, a growing number of hotel owners in the Miami area are plotting their exits, as the pandemic takes another big toll, sources say.

An earlier version of this story identified the incorrect owner of the Hilton Fort Lauderdale Beach Resort. 

Write to Katherine Kallergis at [email protected]


Related Articles

arrow_forward_ios
A photo illustration of Icon on 8's planned short-term rental hotel along with the current site at 930-950 Southwest 8th Street in Little Havana (Getty Images, Icon on 8, Google Maps)
LA developer plans Little Havana short-term rental hotel
LA developer plans Little Havana short-term rental hotel
Developer Jeffrey Soffer and the JW Turnberry resort at 19999 West Country Club Drive in Aventura (Getty, TripAdvisor)
Jeffrey Soffer’s Turnberry Isle resort scores $412M refi from Bank of China
Jeffrey Soffer’s Turnberry Isle resort scores $412M refi from Bank of China
Frank Pellegrino Jr. with Loews Miami Beach and Loews Hotel owner Jonathan Tisch (Rao's, Google Maps, Getty)
Iconic NYC eatery Rao’s to open at Loews Miami Beach
Iconic NYC eatery Rao’s to open at Loews Miami Beach
G6 Hospitality CEO Rob Palleschi and the Motel 6 at 825 East Dania Beach Boulevard (LinkedIn, Google Maps)
Blackstone sells five South Florida budget hotels for $61M
Blackstone sells five South Florida budget hotels for $61M
Hyatt CEO Mark Hoplamazian and Gencom Founder and Principal Karim Alibhai with a rendering of the proposed three-tower development at 400 Southeast Second Avenue (James L. Knight Center) (LinkedIn, Gencom, Arquitectonica)
Hyatt, Gencom score Miami commission approval for James L. Knight Center referendum
Hyatt, Gencom score Miami commission approval for James L. Knight Center referendum
NR Investments' Ron Gottesmann and Nir Shoshani (top) and a rendering of  the development in Allapattah (NR Investments, DPZ CoDesign)
NR Investments wants to build mixed-use complex in Miami’s Allapattah
NR Investments wants to build mixed-use complex in Miami’s Allapattah
Domenic Gatto and Banyan Cay Resort and Club (Linkedin, Banyan Cay, Illustration by The Real Deal with Getty)
Developers of troubled West Palm resort project facing $61M foreclosure
Developers of troubled West Palm resort project facing $61M foreclosure
Jamestown CEO Matt Bronfman and the 727 Collins Apartments at 727 Collins Avenue in Miami Beach (Getty, Google Maps, Jamestown)
Former low-income South Beach apartments hit market as possible hotel conversion
Former low-income South Beach apartments hit market as possible hotel conversion
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...