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LOEWS HOTELS & CO

Ҵý Hotels & Co Sustainability Scorecard (Download PDF)

With a portfolio of 26 owned, managed, and joint-venture hotels in the United States and Canada, Ҵý Hotels & Co (Ҵý Hotels) continues to pursue a strategy of driving profitable growth through strategic partnerships, developments, and acquisitions in major city centers, resort destinations, and markets with unique built-in demand generators.

As part of the subsidiary’s ongoing sustainability reporting efforts, the company addresses sustainability issues that are considered to be most relevant to its business. When determining which areas to highlight the company used as a guide a number of different sources including the applicable issues identified by the Sustainability Accounting Standards Board’s (SASB) industry-level materiality guidance and third-party sustainability experts.

EMPLOYEE RELATIONS

  • Ҵý Hotels & Co is dedicated to hiring, promoting, engaging, and retaining a talented and diverse workforce. In 2020 Equality, Diversity, Community (EDC) was created focusing on continuing to enhance diversity and inclusion within the company. Although the feedback from team members in the 2019 myVoice survey was strong in this area there is always opportunity for further enhancement and collaboration. With this in mind, EDC was created to partner with Human Resources and other areas of the company to focus on strategies to continue the culture of the company. Focus areas include talent acquisition (recruitment of minorities, particularly in management and leadership roles,) learning and development, strategic partnerships with minority organizations and community outreach.

    The creation of EDC reiterates Ҵý Hotels & Co’s principles along with its commitment to diversity and equality and promoting a sense of belonging for team members, neighbors and guests.

    “Embracing Diversity and Inclusion,” a training program focused on understanding and overcoming personal biases in order to treat others with mutual respect, is being provided for all Ҵý Hotels & Co team members.

    Ҵý Hotels & Co is committed to providing competitive levels of pay and benefits and encourages team members to participate in services and training that support their well-being and encourage personal and professional growth.

    The company not only strives for diversity in its own workforce but also focuses on the diversity of its vendors and suppliers. For decades, Ҵý Hotels & Co has developed partnerships and contracts with suppliers, associations, and businesses owned by minorities and women. Ҵý Hotels & Co believes that strong relationships with partners is part of being a good neighbor. Specifically, the company aims to provide economic opportunities to minority- and women-owned businesses through the Ҵý Hotels & Co Minority Business Enterprise Program, which gives small businesses owned by these groups the opportunity to become partners of the company.

  • Ҵý Hotels & Co has recently incorporated a new methodology based on continuously listening to the voices of team members. A new third-party vendor was selected in 2020 to provide enhanced survey capabilities that include “pulsing.” Pulsing makes it possible to ask team members one or two timely questions throughout the course of the year via e-mail with “real time” feedback results. In addition, a larger, comprehensive survey will be conducted as well. The feedback from the pulse questions as well as the larger survey are utilized to create action plans to address areas of opportunity. The goal is to give team members a meaningful voice, underscoring their value within the organization.

    Ҵý Hotels & Co’s Family Traditions is a dynamic and multi-faceted team member engagement strategy consisting of more than 40 unique initiatives and programs designed to drive communication, recognition, social responsibility and many other benefits. This program supports the company’s continued focus in facilitating an innovative people-centered culture which enhances team member loyalty and retention. In 2021, team members rated their overall employment experience a 4.53 on a 5 point scale.

  • Ҵý Hotels & Co considers pay equity as part of its standard compensation review practices. Additionally, the company has changed its application process to not ask prospective candidates their current salary.

  • Ҵý Hotels & Co prides itself on fostering a culture of openness, trust, and integrity. The company has established the  -- my Input Ethics Hotline, allowing team members to report any concerns relating to internal control and fraud, workers compensation fraud, human resources complaints or ethics violations. Ҵý Hotels & Co uses an industry-leading third-party provider to administer the ethics hotline, allowing team members to feel confident that their anonymity is respected when reporting their concerns.

    Ҵý Hotels & Co receives calls from less than 0.3% of its team member population annually. The majority of those calls relate to working relationship issues. Once investigated about half are substantiated, and those are addressed immediately.

  • SASB: SV-HL-310a.1

    Less than 0.2% of annual revenues.

  • Ҵý Hotels & Co has robust Equal Employment Opportunity and Anti-Harassment Policies that strive to provide greater awareness, protection, and reporting capabilities to team members. Ҵý Hotels & Co offers training to team members biennially.

  • SASB: SV-HL-310a.1

    Ҵý Hotels & Co prides itself on maintaining relatively low turnover rates of about 30% (combined voluntary and involuntary rates) in a typical operating environment and up to 48% during the business recovery period of 2021. By comparison, the Bureau of Labor Statistics reports annualized employee turnover rates ranging from 72-79% between 2016-2019 in the Accommodation and Food Services industry.

    •           Voluntary: 39.4%

    •           Involuntary: 8.5%

    •           Total: 47.9%

ENTERPRISE RISK MANAGEMENT

  • The Ҵý Hotels & Co Risk Council Committee is a cross-sectional group of leaders that review the corporate risk matrix, which includes an inventory of risks, risk scores, and mitigation practices. The group meets at least twice a year to evaluate these risks, including climate change risks. Additionally, risk discussions also take place as part of the quarterly Audit Council meetings and monthly meetings of the company’s Executive Leadership Team. Climate-related issues that are identified and communicated to the Risk Council Committee are evaluated in the same manner as any other risk to the business.

    Additional major risks that are reviewed and monitored include:

    •           Talent & Labor

    •           Commercial Growth

    •           Growth

    •           Operating Performance (including business continuity)

    •           Technology

    •           Reputation Risk

  • Ҵý Hotels & Co’s engineering teams oversee facility operations, including the management of energy and water consumption, greenhouse gas emissions, and waste. These team members are responsible for identifying opportunities to increase operating efficiency and implementing both operational and capital strategies to meet this end.

  • ESG risks have been incorporated into Hotels’ annual ERM planning process. In addition to incorporating systemic and ESG risks into annual ERM and business planning processes, the company is responsive to risks identified by its team members. In fact, Ҵý Hotels & Co has carefully designed its organizational structure to ensure that team members at all levels are empowered to raise issues as necessary.

  • Ҵý Hotels & Co understands the importance of sourcing locally and supports further advancements in agricultural crops, seafood, animal proteins, and plastic and paper products through its supply chain.

    Ҵý Hotels & Co’s Supplier Code of Conduct outlines its minimum expectations for compliance, human rights and labor, health and safety, the environment, and ethics. Where possible, Ҵý Hotels & Co requests environmental policies from suppliers to signal the importance Hotel’s places on environmental responsibility.

    • Annual spend with Diversity Suppliers is almost 10% of total spend, more than $5 million annually.
    • Diversity program includes all classes of diversity to include but not limited to:
      • African American, Asian-Owned, Hispanic, Veteran-Owned, Women-Owned.

     

    Ҵý Hotels & Co's Minority Business Enterprise Program gives small businesses owned by minorities and women the opportunity to become partners of Ҵý Hotels & Co.

    Through this program the company buys:

    • Operating supplies and equipment
    • Furniture, fixtures and equipment
    • Food and beverage
    • Design and construction services
    • Freight and logistics
    • Services, engineering supplies and utilities

     

    Each applicant is evaluated based on the following criteria:

    • Hospitality references
    • Competitive prices
    • High standards of quality and performance
    • Insurance and indemnification requirements
    • Minimum 3-year business history
  • Ҵý Hotels & Co assesses its cybersecurity practices against the NIST Cybersecurity Framework. The company goes to great lengths to protect its customers’ privacy and utilizes best in class tools to conduct quarterly internal and external vulnerability assessments and annual penetration tests. Additionally, Ҵý Hotels & Co tokenizes credit card information to significantly reduce the credit card security threat on central systems and hotel property-based systems. Ҵý Hotels & Co has performed a gap assessment and built a 3-year roadmap to ensure that the company continues to mature. Ҵý Hotels & Co has a Cyber Incident Response protocol and performs an annual tabletop exercise with Executive Leadership.

STRATEGY

  • Ҵý Hotels & Co had embraced Strategic Sustainability long before it was a trend. The company believes that focusing on sustainability can generate a competitive advantage. Examples of this focus include reducing water usage which benefits the environment and decreases costs as well as sourcing food locally which helps the communities where Ҵý Hotels & Co operates. The Ҵý Hotels Good Neighbor Policy, one of the hospitality industry’s first comprehensive community outreach program, addresses issues ranging from hunger relief and literacy to green practices and the arts. Ҵý Hotels & Co’s commitment to good corporate citizenship is strong and deep and the Good Neighbor Policy continues to evolve and grow.

  • SASB: SV-HL-450a.1

    • Ҵý Miami Beach Hotel in Miami Beach, Florida
    • Universal’s Endless Summer Resort in Orlando Florida
    • Ҵý Ventana Canyon Resort in Tucson, Arizona

     

  • SASB: SV-HL-160a.2

    • Ҵý Coronado Bay Resort is located near:
      • The Silver Strand Natural Preserve, where the endangered snowy plover nests and raises its young;
      • The Bayside Restoration, which focuses on sensitive plants and wildlife; and
      • The Cabrillo State Marine Reserve, which is a marine protected area that focuses on conserving and restoring wildlife and habitats in the waters extending from Silver Strand.
    • Ҵý Miami Beach Resort is located on Miami Beach.  This beach and dune system are considered essential habitat for nesting sea turtles.

ENVIRONMENTAL

  • SASB: SV-HL-130a.1 & SASB: SV-HL-140a.1

    Energy and water usage in 2020 was unusually low due to the impact of COVID-19 on the travel and lodging industry

     

    2020

    2021

    Total Energy Consumed (millions of kWh)

    308.7

     358.0

    Water Consumed (millions of cubic feet)

    79.88

    94.18

  • SASB: SV-HL-160a.2

    Ҵý Hotels & Co has partnered with several third parties to gain insight into its environmental impact. The company partnered with Waste Revelation, a waste and recycling consulting organization that reviews and tracks all of Ҵý Hotels & Co’s sustainability and waste-recycling efforts and has developed standards for both existing buildings and new hotels under construction. Waste Revelation’s standards help Ҵý Hotels & Co meet Department of Energy building codes when it embarks on a new development. Ҵý Hotels & Co has also partnered with Goby, an enterprise data platform provider of sustainability solutions, to track enterprise-wide energy usage and energy consumption per guest.

    Ҵý Hotels & Co has integrated energy-efficient equipment into its long-term capital infrastructure plans. Over the past five-plus years, Ҵý Hotels & Co has invested in upgrading its facilities to reduce its energy consumption.

    Ҵý Hotels & Co has invested considerably in its green initiatives, however management recognizes there is always room for improvement. Therefore, Ҵý Hotels & Co instituted a goal of reducing its portfolio-wide source energy use intensity (EUI) by 20% from its 2012 levels through 2022.  By 2019 the company had already reduced its EUI by 24% and was awarded the 2020 Better Buildings Goal Achiever Award by the US Department of Energy. Additionally, in 2021, Ҵý Hotels & Co recycled 26.5% of total waste.  Ҵý Hotels has set a new goal of reducing its EUI by 30% by 2030.  

    Ҵý Hotels & Co’s commitment to sustainability and the environment extends to its suppliers. Working with local farmers, the company looks for certified naturally grown and organic products. It sources protein products for its restaurants that are all natural—with no antibiotics or steroids—from suppliers that are certified as humane. Ҵý Hotels & Co was one of the first hospitality companies to use cage-free eggs across the portfolio. Also, guest room amenity suppliers for shampoo, conditioner, lotion, and soaps are required to package products in recyclable tubes, and the products must be natural and not tested on animals.

    Ҵý Hotels & Co fully embraces its responsibility as an environmental steward and believes in developing sustainable practices as a leader in the industry. Ҵý Hotels & Co is thoroughly committed to reducing its environmental impact by actively participating in standards that are in harmony with the earth’s natural resources and direction through their partnership with ENERGY STAR and other green initiatives.

    The Ҵý Hotels Good Neighbor Policy was created in 1990 by Jonathan Tisch, Ҵý Hotels’ Chairman & CEO. The Ҵý Good Neighbor Policy is the company's formal commitment to its long-standing tradition of understanding our social responsibility to the communities where the company owns and operates hotels.

    Ҵý Hotels & Co Green Hotel Standards and Practices Include:

    • Food donations in partnership with local food banks
    • Linen/terry policy
    • Banquet/back-of-house recycling
    • Eco-friendly inks and papers
    • Energy Technologies including low-flow shower heads, compact fluorescent light bulbs
    • Green Training
    • Green Teams

ETHICS & VALUES

  • Ҵý Hotels & Co is committed to maintaining high standards for honest and ethical conduct in all of its business dealings. Ҵý Hotels & Co has an established "Code of Conduct" training program covering the various areas of business ethics as well as a defined policy. Integrity and proper business conduct have been a cornerstone of the company since its founding.

  • Ҵý Hotels & Co is committed to providing a workplace free from unlawful discrimination, harassment and retaliation. Ҵý Hotels & Co does not tolerate any form of discrimination or sexual harassment in the workplace. The Ҵý is an equal opportunity employer and practices and employment decisions, including those regarding recruitment, hiring, assignment, promotion and compensation, shall not be based on any person’s sex, sex stereotyping, pregnancy (which includes pregnancy, childbirth, breastfeeding, and medical conditions related to pregnancy, childbirth, or breastfeeding), race, color, religion or creed, ancestry or national origin, age, disability, medical condition, familial or marital status, sexual orientation, gender, gender identity, gender expression, military or veteran status, citizenship status, genetic information, or other protected group status as defined by law (“Protected Status”).

  • SASB: SV-HL-310a.4

    Ҵý Hotels & Co is committed to providing its team members with a safe, nurturing environment that ensures they can perform at their best.

  • In the interest of maintaining a focused business environment and preventing interference with work and inconvenience to others, Ҵý Hotels & Co team members may not distribute literature or printed materials of any kind, sell merchandise, solicit financial contributions or solicit for any other cause during working time.

BUSINESS CONTINUITY

  • Ҵý Hotels & Co maintains a crisis management & response manual that is specific to each hotel. It is the policy of Ҵý Hotels & Co to take the appropriate steps in sustaining critical business functions in the event that a disaster occurs at any of the Ҵý Hotels & Co properties. A disaster can be defined as an unexpected disruption of business functions for an extended period of time. In order to uphold the business operations of Ҵý Hotels & Co, an Emergency Action Plan has been created to help hotel management carry out their responsibilities of maintaining the properties before, during, and after a disaster.