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

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 kk@therealdeal.com