operationsLodging Magazine··1 min·For: Owner, GM, Ops, Investor
Wildfire Hardening Becomes Critical for Hotel Insurance
Hotel owners face rising insurance and closure risks from wildfires, making physical hardening and defensible landscaping crucial to maintaining cash flow and insurability. Simple perimeter clearance and envelope upgrades can protect revenues and prevent costly long-term shutdowns.
Key Takeaways
- 1Clearing flammable materials within five feet of buildings dramatically reduces destruction risk and costs very little.
- 2Unmitigated closures cost 15% to 20% of annual EBITDA while standard insurance policies often fail to cover smoke-only impacts.
- 3Proactive structural hardening preserves insurability and debt financing as commercial underwriters tighten asset-level scrutiny.
Source: Lodging Magazine
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