By Karim Chandani
After a dismal 2020, experts predict more of the same for 2021: Canadian hotels will be operating below 60% occupancy throughout 2021, according to at least one study.[1]
The government has thrown the industry a lifeline of sorts: On February 22, 2021, all foreign travelers coming into Canada became subject to a three-day hotel quarantine. The eagerness to take in guests is no surprise: Travel restrictions into and within the country are still in effect, making it nearly impossible to increase business with tourists. And despite government programs that offer interest-free, partially forgivable loans of up to $60,000,[2] it’s still not enough for many hotel owners to thrive.
However, hosting quarantined travelers could turn a hotel into a different business, making it more akin to a healthcare facility than traditional hotel. Quarantining travelers in your facilities changes your risk profile, potentially leading insurers to cancel policies or deny claims.
Best practices for protecting your business
A hotel owner or operator’s main priority is to protect guests and staff, and quarantining guests raises the spectre of mitigation procedures if a guest or employee contracts COVID-19 through a quarantined traveler at your facility. And does a facility maintain its reputation if a guest reports on Yelp that you’re housing passengers who need to quarantine?
If you’re considering housing travellers who need to isolate in your hotel, prioritize the following protections:
- Protect your guests. Keep a barrier between guest and quarantine floors. In most cases, this means leaving an entire floor empty as a buffer zone. It’s also a good idea to hire security staff to ensure those who are supposed to be isolating remain in their rooms and other guests don’t accidentally wind up on quarantine floors.
- Protect your staff. All staff members should be provided with personal protective equipment (PPE) to protect them from the virus, especially when servicing quarantine floors. In addition, it’s critical to develop a special process for dealing with sheets and towels, as well as delivering food and picking up dirty dishes.
- Protect your hotel. Consider the implications of filling a hotel with visitors who need to quarantine. It’s unlikely that other guests will be comfortable staying in such a facility. Your reputation may suffer and have a difficult time recovering.
Dealing with changing risk
What’s more, the risk is astronomically higher when a hotel becomes a quarantine centre. An infected guest could sue the hotel or the hotel’s reputation could suffer to the extent it doesn’t receive guests once travel restrictions are lifted.
Follow these steps to protect yourself and your hotel from risk:
- Add coverage. Consider increasing liability if you are carrying only the basic $5 million coverage.
- Request government coverage. Ask government agencies to cover your hotel with their provincial government insurance. Hotels that are participating in a government program often qualify for government insurance.
- Talk to your broker. Your broker can help determine potential consequences of each decision regarding quarantine guests.
- Notify your insurance company. Some insurers are denying claims when hotels are being used in unusual ways. If you decide to offer your hotel for quarantining travellers, make sure you understand ahead of time what your existing insurance will — and won’t — cover.
Contact a HUB hospitality specialist to ensure your hotel has the right kind of coverage against risk.
[1]Hotelier Magazine, “The 2020 Hospitality Market Report From CBRE Points to a Long Road Ahead for the Canadian Hotel Industry,” September 3, 2020.
[2]Government of Canada, “Canada’s COVID-19 Response Plan,” accessed March 18, 2020.