June 3, 2013
By Neal Tepel
CHICAGO, Ill. – In July 2012, UNITE HERE announced a global boycott of Hyatt hotels. The boycott has been endorsed by many of the nation's largest labor, civil rights, women's and LGBT advocacy organizations. Over 200 Democratic elected leaders from 37 different states have signed the boycott pledge and the Governor of Massachusetts, Deval Patrick, has asked that no state business be conducted in Boston-area Hyatts.
UNITE HERE, has recently released an analysis examining Hyatt's poor performance and business decline. The report, "Struggling Quarter, Unsatisfying Explanations," looks at disappointing earnings by Hyatt Hotels Corporation (H) compared to its peers and questions whether the company's labor problems are contributing to its poor group results.
It has reported a 16% decrease in EPS, largely caused by a 5.8% decline in group room revenue at domestic, full-service hotels while competitors fared much better.
Hyatt is the only hotel company with a long-running labor dispute and system-wide boycott by its largest union. Many organizations ranging from The College Board to the Human Rights Campaign to Major League Baseball have shifted business from Hyatt hotels since the boycott was announced.
