UNITE HERE Local 1: Xenia Hotels and Resorts Booked $14.8M Impairment Loss at Boycotted Chicago Hotel
CHICAGO--(BUSINESS WIRE)--Dec 18, 2019--
In a report published today, hospitality union UNITE HERE Local 1 questions Xenia Hotels and Resorts’ (NYSE: XHR) explanation of the $14.8 million impairment loss at its Marriott Chicago at Medical District-UIC hotel.
Read the full report: https://www.boycottmarriottmedicaldistrict.org/wp-content/uploads/Xenia-Writedown.pdf
Xenia announced this August that they “wrote down the carrying value of our 113-room Marriott Chicago at Medical District/UIC by $14.8 million.” The Chicago hotel’s impairment was a major factor in Xenia’s overall 57% decrease in net income for the nine months ending September 30, 2019 compared to the previous year, according to Xenia’s 3Q 2019 report.
Xenia Chief Financial Officer Atish Shah said that “It is unlikely that this full-service Marriott’s profitability recovers to prior levels despite the renovation we completed last year.”
Xenia blamed higher operating expenses, higher property taxes, and increased competition from new supply. However:
“How much of the hotel’s impairment can be attributed to the union boycott?” asked UNITE HERE Local 1 research analyst Marcos Feldman.
In May 2018 workers in the hotel’s food and beverage and housekeeping departments voted overwhelmingly for union representation by UNITE HERE Local 1. On November 6, 2019 the NLRB ordered Xenia’s Chicago Marriott to “cease and desist” from its refusal and to start negotiating with its employees.
The Marriott Medical District was acquired for $19.8 million in June 2005 by RLJ Funds, which in 2007 was acquired by Inland American Real Estate Trust. In 2015 Inland spun off much of its hotel portfolio into Xenia Hotels & Resorts.
UNITE HERE Local 1, Chicago’s hospitality workers union, represents over 15,000 hotel and food service workers in Chicago and casino workers in Northwest Indiana.
View source version on businesswire.com:https://www.businesswire.com/news/home/20191218005767/en/
CONTACT: Marcos Feldman
UNITE HERE Local 1
KEYWORD: ILLINOIS UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: LABOR LODGING PUBLIC POLICY PUBLIC POLICY/GOVERNMENT TRAVEL
SOURCE: UNITE HERE Local 1
Copyright Business Wire 2019.
PUB: 12/18/2019 04:52 PM/DISC: 12/18/2019 04:51 PM