Corinthia in cost-cutting drive amid coronavirus pandemic

Corinthia Group implements cost-cutting and containment measures across its international hotel network as coronavirus spreads globally

The Corinthia Group is implementing a number of measures in light of the coronavirus pandemic
The Corinthia Group is implementing a number of measures in light of the coronavirus pandemic

The Corinthia hotels group has put in place a number of cost-cutting and cost-containment measures in light of the spread of the coronavirus worldwide.

In a statement on Thursday, the Corinthia Group - which operates 21 hotels internationally, including in Malta, London, Budapest, Prague, St Petersburg, Lisbon and Tripoli - said it was still too early to estimate the effect the Covid-19 pandemic will have on its 2020 performance.

“The health and safety of our guests and colleagues are foremost in our order of priorities,” Corinthia said, “We have been for several weeks and will continue to take all measures as directed by all relevant health authorities in the various jurisdictions we are operating. Internal guidelines on operations and staff welfare have been in circulation for some time.”

Corinthia noted that “the financial and economic situation of the company is equally important.”

“For some weeks now, we have addressed a series of first-wave cost-cutting and cost containment measures, which include shutting down entire wings or floors in our hotels. We have directed no new CAPEX (capital expenditure), no new recruitment, no payroll shifts and no travel. We are also watching costs and conserving amenities, energy and consumables,” the group said.

It said it would continue to monitor the situation in countries in which it operated, highlighting that it had plans to escalate cost-saving measures “as and when necessary”.

“Not all destinations are being impacted in equal measure,” Corinthia noted.

“It is early days to estimate the impact of the pandemic on the financial performance for 2020 and the whilst the company is monitoring all angles of its operations and financial positions, announcements on future expectations will be made only as and when more certainty returns to the market,” the group added.

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