Lemon Tree Hotels Ltd.
The current pandemic has had a far-reaching global impact on the hotel sector and the overall economy since February this year. The travel and hospitality industries across the world have been among the most severely impacted sectors.
For us, keeping the operating costs as close to operating revenues as possible and managing payroll expenses without asking an employee to leave and without pay cuts for team members in lower bands was paramount. The leadership team led by example by accepting a substantial pay cut for the entire period (which continues), backed by a balanced approach to leave without pay (LWP) by hotel team members on a rotational basis, in line with a revised roster.
Our approach to handling this recalibration of revenue has been to align our costs—fixed and variable—to match this reduced revenue and thereby minimize the negative impact on profitability. Special attention was paid to large and fixed cost contributors like manpower costs, power and fuel, lease rentals, etc.
If we review the history of the previous three pandemics/epidemics (all influenza-based) of the past century (Spanish Flu of 1918, Asian Flu of 1958 and Hong Kong Flu of 1969), the evolution has been identical: The numbers rise in the first phase with one to three waves after which they decline as the population develops herd immunity. This, then, arrests and ends the pandemic/ epidemic. The economic recovery and return to normalcy usually take 2-3 years from the start.
Over 50% of Lemon Tree Hotels’ operating inventory was open during the last six months of lockdown.
The group partnered with various state governments to serve as quarantine centres for Indian nationals returning home from abroad. Right now 70% of the inventory is open.
The group partnered with hospital chains, Apollo Hospitals and Medanta, to provide specific hotels as centres for asymptomatic/mild symptom patients. These hospitals also set up 24×7 nursing stations at Lemon Tree Hotels under the regular guidance of doctors.
Ensuring the safety and health of 8000 employees and galvanizing their collective strength yielded the best results. In March, a core team was formed by the CMD, COOs, HR, Brand and Communication, and other leadership team members to define new Standard Operating Procedures (SOPs), safety measures, a new consumer journey (from the booking stage to check-in, stay and check-out), F&B menus and service norms.
To boost employee morale high, a high frequency of short briefings and concalls in a hybrid online-offline mode was used along with extensive online training sessions on the new SOPs. In May 2020, Lemon Tree Hotels launched the Rest Assured program to help create an environment focused on health, hygiene, safety and wellbeing, in partnership with Diversey.
Frontline Heroes
Sandeep Malhotra, Security Manager, Lemon Tree Premier and Red Fox Hotel, Delhi Airport
When Sandeep Malhotra found himself in a situation where he could save a guest’s life, he did so without hesitating for an instant. A guest in quarantine at the hotel called the operator to inform him that he has breathless and required urgent help. The hotel team called for an ambulance, which, unfortunately, was delayed. Malhotra stepped in and drove the guest to the hospital in his car. Furthermore, he assisted the guest through all the hospital formalities, including helping him to get his COVID-19 test done immediately, which turned out to be positive.
Anandit Nagar, Assistant Manager – Housekeeping, Lemon Tree Premier, HITEC City, Hyderabad
Anandit Nagar held the fort when the hotel’s Head of Department – Housekeeping could not report to work due to unavoidable circumstances. He displayed great leadership skills in an environment full of challenges. His ‘Never Say No’ attitude cascaded to other team members and helped increase the efficiency of the department.
As a part of the post-COVID SOPs, all common areas are periodically cleaned and sanitized to maintain utmost hygiene in the hotel premises. Despite a lean staffing, Nagar ensured smooth operations even as his team found ways to reduce costs and contribute to the profitability of the hotel.
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