“At the time, we believed that we would be able to recall the employees back to work within six months of the above date,” said human resources manager Mindy Statz. “We continued to provide health care benefits to the employees during this period of time.”
Statz said RMC recently concluded that due to continuing issues and concerns with the pandemic, occupancy at the hotels have not returned to the degree needed to bring employees back to their previous positions.
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Both hotels remains in operation with a reduced staff, she said.
Since the coronavirus crisis started, hotel owners say they are struggling to get relief on a type of loan that Wall Street investors buy. These commercial mortgage-backed securities loans are packaged in the form of bonds with the loans on properties such as hotels serving as collateral.
Since the coronavirus halted most travel, many hotel owners have had to lay off workers and they’ve been unable to make monthly payments on their loans. Hotel owners say that unlike banks that are negotiating with them, the servicers for the CMBS loans, also known as Conduit loans, have been next to impossible to reach for help.
The Associated Press contributed to this report.