CLEVELAND, Ohio – A total of 178 employees at Hilton Cleveland Downtown hotel, who were furloughed in March for six months, now will remain off work for an indefinite period, the hotel revealed this week.
In a letter to the state Workforce Development Office, Cleveland Mayor Frank Jackson and Cuyahoga County Executive Armond Budish, hotel General Manager Teri Agosta said the company is still hopeful some workers will be called back before the six-month period ends in September, but that that is no longer the company’s “best estimate.”
“We did not and could not have foreseen how broadly and deeply the COVID-19 epidemic would spread and affect our business; nor did we foresee that ‘lockdown’ orders, initially issued for short durations in certain specific cities, would spread throughout the country and be constantly and continually extended,” Agosta wrote.
The letter and form disclosing the furloughs is dated July 25 and was received by the state Friday. Cleveland.com obtained a copy from state files.
In May, as Ohio began to reopen, Agosta told cleveland.com that she was seeing signs of life in Cleveland’s tourism economy and was optimistic business would rebound.
But a surge in coronavirus cases across the state and the country has left the travel industry struggling.
“The return of consumer confidence to travel remains weak,” Agosta wrote in her letter. “Even though we are seeing early signs of economic relief, they have not been consistent or significant.”
With 600 rooms, the 32-story hotel is the largest in Cleveland and one of the largest in Ohio.
Built at a cost of $272 million, the building was financed by Cuyahoga County taxpayers, via a sales tax increase that also funded the adjacent Huntington Convention Center of Cleveland. At the time, county leaders argued that a large convention-oriented hotel was necessary to attract major events and groups to the city.
Early in July, Cuyahoga County Council approved a $7.9-million bailout to offset lost revenues Hilton blamed on the downturn in business.
The money was needed to pay for $1.4 million in property taxes and $6.5 million in debt payments that would typically have covered by the hotel’s revenues and bed taxes collected from hotel guests — sources that have dried up amid the pandemic.
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August 01, 2020 at 05:10AM
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178 workers at Hilton Cleveland Downtown initially furloughed for 6 months by coronavirus now idled indefinit - cleveland.com
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