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Latin American Hotel Owners Discuss Their Obligation to Employees, Communities

Hoteliers from Panama, Argentina Share How They Helped Employees Weather the Pandemic

An exterior view of the Hilton Buenos Aires Hotel at Puerto Madero district in Buenos Aires, Argentina. (Getty Images)
An exterior view of the Hilton Buenos Aires Hotel at Puerto Madero district in Buenos Aires, Argentina. (Getty Images)

PANAMA CITY — At the start of the COVID-19 pandemic, when lockdowns stopped all nonessential travel, employees at hotels in destinations like Panama City and Buenos Aires were feeling the pain of the economic crisis most acutely.

That's when companies like Bern Hotels & Resorts stepped in to make sure they were doing everything they can to help both their employees and the communities around their hotels.

Speaking during the 2022 SAHIC Latin America & The Caribbean conference, Herman Bern Jr., president of Bern Hotels & Resorts, said his company's first move after shutting down was to provide associates at least with the essentials.

"We had 1,700 employees at the beginning of the pandemic," he said via a live interpreter, while speaking on that "Hotel Owners Speak Out" panel. "We had to tell them what was going on, and at first [shutting down hotels] was for one week, then two weeks, then three months. [Employees] had nothing to eat. We had no work to give them, so we gave them the food we had in storage."

Bern said the only people working on property during those periods were security personnel, and employees would rotate who got to work those shifts so everyone would get some pay.

"You could have a waiter working as a guard," he said.

Bern said his company then quickly pivoted to donating hotels like The Westin Playa Bonita Panama as housing for essential workers, including healthcare workers and law enforcement officers. He said that was particularly rewarding because his hotel hosted the doctors and nurses that saved his father's life when he contracted COVID-19.

Paula Gonzalez, president of Madero Este Group, which owns the Hilton Buenos Aires, said she's proud that her company managed to weather the crisis without closing that hotel, even when it meant the only people on property were an eight-person team who lived on property while operating it, a Spanish couple and a Mexican business man, all stranded from returning home. She said that decision was difficult but has paid dividends.

"With a great deal of effort, we got through it, and I'd like to share with you that our rate has grown 55% since those days with 72% average occupancy," she said.

Gonzalez said she didn't have a connection to the hotel industry prior to developing that property 22 years ago, but operating it has helped her fall in love with hotels and the role they have in building communities around them.

The hotel has emerged from the crisis somewhat leaner, with a staff of 260 compared to 400 prior to the pandemic, Gonzalez said.

When asked whether it was better to be affiliated with a brand during the crisis, she said Hilton was helpful in navigating back up from the depths.

Bern agreed that strong hotel brand affiliations are helpful in the current environment, particularly with making guests feel more comfortable about the prospect of international travel.

"Nowadays, the traveler wants to feel safe, not just with hygiene and health but in a time of crisis where they can't go to their home country," he said. "They'd rather stay in a Westin than some random hotel. they want to feel safe and know they're taken care of, and a brand delivers that promise internationally."

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