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April 1, 2020

New city Graduate Hotel announces layoffs, furloughs

PHOTO | Courtesy Graduate New Haven
By Michelle Tuccitto Sullo

The parent company of downtown New Haven’s newest hotel, Graduate New Haven, has notified the state’s Department of Labor that it expects to lay off and/or furlough employees due to a downturn in business related to the coronavirus.

The staffing changes will impact not only the New Haven location at the site of the former Hotel Duncan, but also a second hotel in Storrs on the University of Connecticut campus, according to the notice, filed by the Collegiate Hotel Group, the hotels’ Kentucky-based parent company.

The impacted hotels are at 1151 Chapel St., New Haven, and 855 Bolton Rd., Storrs, according to the company’s WARN (Worker Adjustment & Retraining Notification Act) notice, received by state officials on Monday. 

The company’s New Haven hotel just opened this past fall. It is close to Yale University, which has transitioned to online classes for the remainder of the semester. In Storrs, the Nathan Hale Inn & Conference Center is transitioning to Graduate Storrs, which had a planned debut this spring.

“The company plans to initiate a series of mass layoffs of 76 employees, in addition to traditional terminations, where and as required,” the notice states. “It is the company’s hope that these layoffs will be temporary, but given the pronounced impact of the COVID-19 pandemic on the global economy generally, and the company’s business operations specifically, these layoffs may be permanent.”

The layoffs and furloughs are expected to begin immediately and continue through the end of June, according to the notice, from Stephanie Appel, chief human resources officer for the company.

The impacted employees have a variety of roles, including general manager, guest service representatives, bartenders, room attendants, servers and cooks.

The company has notified customers on its website that all Graduate Hotels are temporarily closed.

“While our team is deeply dedicated to serving both our guests and neighboring communities, we believe closing our hotels at this time is critical for the health and safety of all,” the website says.

According to the website, the company doesn’t yet know when the hotels will reopen, but they are working closely with local government and health officials and hope to be back to serving customers soon.

Ben Weprin, founder and CEO of Graduate Hotels, wrote to customers of the decision to temporarily close, “We are learning how to navigate this challenging moment in time.”

“While we know the decision is the right one for the greater good and safety of our guests, it has not been taken lightly,” Weprin said on a company website. “I look forward to welcoming you and your families back into our hotels as soon as it is prudent to do so.”

Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.

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