Trump SoHo Laying Off Workers
Once a celebrity-favorite hotel, Trump Soho, is laying off a dozen workers as it struggles with declining guest check-ins and corporate event bookings. The 46-story luxury hotel is laying off 15% of the housekeeping staff while, at the same time, cutting the prices for room bookings.
Two sources confirmed to radio station WNYC that the hotel is laying off 12 room attendants out of a staff of 80 housekeepers. Further, hotel guests will no longer be getting their beds turned down for the night or finding chocolates on their pillows, as the hotel is also eliminating the nightly turndown service.
The layoffs come as the hotel faces a slump in room bookings, as well as in corporate event bookings.
This year the hotel only booked 11 events, from lesser-known clients than usual. The corporate bookings were down from 29 events last year, when the hotel booked big corporate events for companies including Citibank, General Electric Company, and Amazon.com, Inc.
The decline in bookings may have partly been a result of the president’s name being attached to the property, according to Cornell Hotel School Professor Jan de Roos. “I have to believe that a lot of organizations would not want to have meetings at a Trump Hotel just to not have to deal with it,” said de Roos.
Celebrities who would occasionally dine at Trump SoHo’s sushi restaurant, “Koi Restaurant,” also cut down their visits. A server at the restaurant was quoted as saying, “the Kardashians stopped coming.” Consequently, the restaurant had to close down a month earlier than planned, leaving behind a huge empty space in the hotel’s lobby.
In addition, some famous athletes have vowed to not stay at Trump-branded hotels, including basketball player LeBron James and others in National Basketball Association (NBA).
In the wake of declining customer traffic, the 391-room five-star hotel has cut its nightly room rate from as high as $700.00 to less than $400.00, in order to attract more bookings.
“Trump SoHo Plans Layoffs,” WNYC, May 24, 2017.
“Trump’s luxury hotel in New York, once hot, now is not,” Quartz, May 26, 2017.
“Trump Hotel Tells Workers Not To Leak,” WNYC, June 21, 2017.