In direct response to the COVID-19 pandemic’s effect on the hospitality industry worldwide, Palisociety has launched the Boutique and Independent Hotel Recovery Fund, designed to provide sub-100-key independent hotels with relief and recovery capital and direct access to the brand’s operational infrastructure and shared services platform to stabilize hotel operations, mitigate further operational losses during the crisis period and successfully relaunch during the recovery period. If applicable, the fund can and will also support the repositioning of select properties into a Palihouse, Palihotel or independent Palisociety branded hotel.
“Boutique and independent hotels are in basically the same state of stasis as most of the hotels around the world, planning and hoping for some sort of a reopening as soon as reasonably possible before their lenders go sideways on them,” Avi Brosh, founder of Palisociety, told InspireDesign. “The greatest challenge they face is staying power—it’s the seminal issue in the hospitality industry today and most of the smaller players currently have less optionality and somewhat less access to capital.”
The Palisociety Boutique and Independent Hotel Recovery Fund will aid participating hotels in the areas of
COVID 19 crisis-related hotel operations; the integration of nimble and flexible operations and staffing models;
an expedited ramp up and stabilization timeline; achievement of RevPAR premiums and high direct sales mix; and
“Over the next six to 18 months, hotels will need to rely upon strong brand recognition, smart and novel marketing
and revenue strategies, and nimble financial structures in order to succeed in the mid term and regain the confidence of travelers,” Brosh said. “The Palisociety relief fund offers the capital, cost-effective resources, operating models and national visibility to enable the speedy recovery and future success of these properties.”
Palisociety’s team of industry executives will work directly with each property in the fund to deploy services and support in a timely, effective manner within weeks of partnership with a focus on preserving cash, recovering capital investment, exploring contract and revenue opportunities and improving payment terms with existing vendor partners.
“There is without question going to be winners and losers on the other side of this. The winners will have to stay up with best health and safety practices and have access to the resources necessary to reopen,” the founder said.
The fund also allows access to Palisociety’s revenue management and accounting technologies, digital marketing and PR specialists, and design and development teams overseeing concept and interior design, construction administration and technical services.
“For boutiques, I don’t expect much in terms of a design paradigm shift per sé, but I do expect there to be a rush to limit guest touches across the board in hotels overall,” Brosh said.