The Guy and Julia Hands-owned luxury hotel group confirmed it has slashed the number of staff payroll hours “in the short-term” due to reduced guest demand.
Hand Picked Hotels has said its decision to cut staff payroll hours by up to 12.5% in total was “not taken lightly”.
It comes after The Times reported last week that the Guy and Julia Hands-owned country house hotel group had imposed compulsory working hour reductions on “about a thousand employees” to support the business during its quietest months of the year between January and March.
In a letter to employees seen by the paper, chief executive Ignace Bauwens said: “I understand that this may be an unsettling time but please rest assured that we will keep all changes under review with a full review at the end of March based on forward expectations of business performance.”
The luxury hotel chain has since confirmed it made the “tough decision” to cut staff wages in the face of “challenging market headwinds and reduced guest demand”.
A spokesperson for Hand Picked Hotels told The Caterer: “This is not a decision we have taken lightly and it does not affect the £3 per hour pay rise implemented for all employees across the 21 hotels in 2022.
“The hospitality industry in the UK was devastated by Covid and in most cases had only just got back to breaking even in late 2022. Unfortunately the industry continues to face increases in government-imposed costs year after year, as showcased by the latest Budget. In the face of these challenges, the industry needs to work together to advocate for solutions and look for opportunities to become more resilient, ensure longevity and enable sustainable growth in the years ahead.”
They said the business was still “committed to our people” and offered higher hourly wage levels, increased training opportunities and increased flexibility of employment hours.
In an interview with The Caterer late last year, Bauwens revealed ambitions for the group to “become the best country house owner and operator in the UK”.
Hand Picked Hotels was founded by Guy and Julia Hands in 2001 following Julia’s acquisition of a collection of 16 hotels from Virgin Group. It has since grown to 21 country houses and coastal retreats across the UK and the Channel Islands, including in Bath, Surrey and Somerset.