May 14, 2020
CLIA Participates in Coalition Requesting Support of Visit California

CLIA is one of a broad group of tourism related entities requesting a one time emergency $45 million dollar allocation in the state budget for Visit California. The intent of this request is to re-energize the tourism industry in light of the estimated loss of 613,000 tourism related jobs.

Leavitt Pacific Insurance Offers Extensive Resources You Will Need

In response to the new hotel guidelines required for employee and guest safety, Leavitt Pacific Insurance Brokers is providing an array of valuable resources to support your efforts in re-opening your property. Included are training tools, videos, protocols and posters.

We are also offering 120-day free access to the Leavitt Risk Management Center at no cost to CLIA Members. The Risk Management Center allows you to electronically track, assign, and document training. Implementing safety training is strongly recommended as the best way to minimize liability and ensure your workers and guests stay healthy. 

Leavitt Pacific is committed to helping you succeed during these challenging times. Please don’t hesitate to reach out to us for assistance.
Contact: Nick Campo 408.209.7822

Governor Issues Guidance to Re-Open Hotels

Visit for details on the states move into Stage 2. Some lower-risk workplaces can gradually open with adaptations. The state is issuing guidance to help these workplaces reopen safely.

Property Tax Relief, Workers’ Comp Presumptions, and Budget Deficits, Oh My!
A long, long time ago, in a galaxy far away, Major League Baseball was preparing for opening day, school children shuttled off to classrooms each morning, and Corona was best enjoyed ice cold. We’ll call this world March 5, 2020. It goes without saying, May 2020 is a much different world. If ever there was a human experiment testing the rapidity of change, we’re living through it.

As our new world continues turning, the Governor’s office is releasing executive orders at a rapid-fire pace. This week alone has seen orders providing property tax relief and the augmentation of workers’ compensation presumptions. Additionally, a budget that only 60 days ago screamed “my cup runneth over” is now projecting a $54 billion deficit.

Property Tax Relief

Executive Order N-61-20 states that counties must waive late payment penalties, fees, and interest for small-business and homeowners unable to timely pay their property taxes, however, property taxes still must be paid.  It will extend through May 6, 2021 and covers the second half of this year’s property taxes that were due April 10 as well as the first and second payments for 2020-21 taxes due December 10 and April 10.

"Ask the Experts" Conference Call
There will be no call on May 15, 2020
Friday May 22, 2020 at 1pm
Contact for dial-in instructions

5 things to do if your hotel can’t pay its debt service

COVID-19’s impact on the hotel industry has been devastating. According to STR, the operating results for the week ending May 2, revenue per available room dropped 76.8 percent compared with the same week a year earlier. In addition, HVS published an article in mid-April that presented three levels of projections of the hotel industry performance for 2020. Its midrange projection for the US hotel industry was for break-even earnings before interest, taxes, depreciation and amortization, meaning, the average hotel would be unable to generate any cash to service debt or fund capital needs. To make things worse, according to STR, the U.S. reached the highest number of hotel rooms under construction on record in March of 2020.

Temporarily Closed Hotels Due to COVID-19: When to Reopen?
By Neil J Flavin, Suzanne R. Mellen brought to you by

With the advent of the COVID-19 pandemic in the US in early to mid-March 2020, hotel owners and managers watched demand for their rooms suddenly evaporate and since then, tough decisions have been made regarding whether to remain open or temporarily suspend operations.

Hotels that have temporarily suspended operations now need to decide when to reopen. This article addresses the considerations to be weighed in this process and provides one example of the calculus for a hypothetical hotel.

Hotel owners and operators recognize that while we are currently living in a world of scant lodging demand, talk of reopening the country is the necessary precursor to a recovery in travel and the need for hotel accommodations. Just like cities and states need to plan, closed hotels must plan the “how” and “when” of their reopening. As in any business decision, the costs and benefits of remaining closed versus resuming operations must be weighed. During a time when travel is restricted and little can be done to stimulate demand, the primary objective is to limit operating losses through cost containment. At the same time, hotel owners and managers must prepare for an eventual recovery in demand and the reopening of their property.

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