Hospitality union UNITE HERE released a report today on the
unprecedented number of simultaneous union contract renegotiations
occurring at leading hospitality companies in 2018, and the potential
impact of those negotiations on two leading companies in particular:
Marriott International (NYSE:MAR) and Host Hotels and Resorts (NYSE:HST).
Last month, the Union inked landmark settlements with the largest gaming
companies on the Las Vegas Strip, which included precedent-setting
agreements on automation and sexual harassment. Since then, Marriott has
emerged as the largest hospitality employer still facing multiple
renegotiations, with 49 expiring hotel contracts largely concentrated in
This year marks the first time Marriott has been the dominant employer
in hotel contract negotiations across North America. Marriott’s 2016
acquisition of Starwood Hotels and Resorts resulted in a 126 percent
increase in the number of Marriott-operated properties with workforces
represented by UNITE HERE affiliates—from 46 hotels prior to the merger
to 104 post-merger —and tripled the number of contracts which Marriott
will be responsible for renegotiating in 2018 — from 15 to 49.
Among owners of Marriott-operated hotels, Host Hotels and Resorts is
particularly exposed, with nine properties representing nearly $160
million in estimated EBITDA subject to contract renegotiations.
the full report here.
UNITE HERE is the North American hospitality union with more than
275,000 members in the US and Canada.
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