10:00am | The Press-Telegram reported last night that Hyatt Hotels Corp. will begin the process of selling its downtown Long Beach Hyatt Regency location, as protests are planned this evening in front of the hotel over the treatment of employees.
Is the timing of the sale related to ongoing battles with Los Angeles unions claiming to represent the Hyatt hotel workers? Hard to tell. Press-Telegram reporter Karen Robes Meeks says that Hyatt is trying to expand its brand, and selling the Long Beach hotel along with nine other locations will allow the company to “free up capital and pursue other underserved markets.”
Hyatt would apparently continue to operate the downtown Long Beach hotel with the same staff, even if the property is sold.
“We have a strategy to recycle our capital invested in hotel assets over time to ensure that our capital is utilized in a manner best suited to improve preference with our guests, associates, and owners,” the Press-Telegram quotes Global Head of Real Estate and Development Steve Haggerty, in a statement.
“In the case of any asset sales, it is our intention to retain brand affiliation within the Hyatt family. The focus of our acquisition activity is in key locations where Hyatt brands are not represented or are underrepresented.”
The hotel near Rainbow Harbor at the intersection of Shoreline and Pine Avenue came under fire in May when the Los Angeles labor union UNITE HERE Local 11 filed charges of employee discrimination against the Hyatt Regency. Tonight, the Long Beach Coalition For Good Jobs And A Healthy Community will demonstrate against the hotel in Long Beach and 15 other locations across the country.
“Hotel workers in Long Beach and across North America have endured staff cuts, reduced hours, and excessive injury rates,” reads an e-mail notice about the protest tonight. “Chicago-based Hyatt wants to take more away and lock workers into recession contracts even as the economy rebounds. Now, on July 22nd, thousands of hotel workers in 15 cities across North America are standing up to people like the Pritzkers who run Hyatt, one of the wealthiest and most politically influential families in America.”
The group alleges that Hyatt stock has soared during the economic recovery while management at the Long Beach Hyatt Regency have failed to pay proper overtime and denied workers legally-mandated meal and rest breaks. The demonstration will begin at 5:00pm today.