The Marcus Corporation applied for the Paycheck Protection Program on behalf of many of its companies including Hilton Milwaukee City Center, which received funds through the program, according to documents obtained by BizTimes.
Using PPP funds, Hilton Milwaukee employees who were laid off because of the economic impact of coronavirus will be temporarily returned to the payroll. Employees were brought back on active work status as of April 12 and will be receiving paychecks starting April 24 and until June 5, according to an email sent to Hilton Milwaukee employees.
The amount of funds disbursed to Hilton Milwaukee through the PPP was not disclosed. A Marcus spokesperson did not immediately respond to a request for comment.
The Hilton Milwaukee City Center is a 729-room hotel with two cocktail lounges, three restaurants and an 870-car parking ramp.
At the end of 2019, Marcus had around 10,500 employees, including 67% of whom were employed on a variable or part-time basis. The company generated $820.8 million in revenue and $42 million in net earnings last year.
Hilton Milwaukee employees were informed they may not have to work to receive a paycheck but should be prepared to work should hotel operations resume. Under the PPP, businesses who use funds for payroll costs in the first 8 weeks from the time the loan was disbursed will be eligible for 100 percent loan forgiveness.
Only select Marcus companies qualified for a PPP loan, including The Pfister, Hilton Milwaukee, Saint Kate, Hilton Madison, Timber Ridge Lodge, AC Chicago, Skirvin, Cornhusker, Platinum and both Safehouses. The email did not say whether those locations received PPP loans.
The Grand Geneva Resort and Spa, Wisconsin Hospitality Linen Service, the reservation center and The Marcus Corp.’s M1 and corporate teams were not eligible for PPP, according to email sent to Marcus Hotels & Resorts team members.
“We feel horrible that the PPP loans are not available to help every one of our associates, but please know that we will do everything in our power to help as many of you as possible,” Marcus Hotels & Resorts president Michael Evans said in an email to staff.
Like many Milwaukee-area hotels, Marcus Hotels & Resorts temporarily closed all three of its downtown Milwaukee hotels in late March and early April due to COVID-19.
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