NEWPORT – The Newport Island Harbor Resort has announced it is planning to temporarily lay off 136 employees.
The resort filed a Worker Adjustment and Retraining Notification notice with the R.I. Department of Labor & Training on Sept. 22 indicating the layoffs are set to take effect on Nov. 22 and affect non-union positions. The federal notification law requires companies to alert the DLT before laying off a significant number of workers.
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A representative from Pebblebrook Hotel Trust, which owns the resort, told Providence Business News Thursday that the layoffs were related to an approximately $45 million redevelopment of the resort that is expected to be finished in spring 2024.
A portion of the resort will be closed during the construction, and there are plans to rehire staff once the project is completed, according to the representative who requested to remain anonymous.
The representative added that the layoffs and redevelopment are coming at the resort’s slowest time of the year when other restaurants and hospitality properties in the seaside city close or reduce their hours.
Providence Business News previously reported that the resort located on a 10-acre property on Goat Island was purchased by Pebblebrook Trust Hotel in June 2022 for $174 million. The Maryland-based real estate investment trust owns several other urban and resort lifestyle hotels in the U.S.
In June 2022, Pebblebrook Hotel Trust also indicated it was planning renovations of the resort, formerly known as Gurney’s Newport Resort & Marina, that include updating guest rooms and bathrooms, upgrading the lobby, redeveloping the restaurants and bars, as well as adding a market and other amenities. Davidson Hospitality Group also announced in October 2022 that it was chosen by Pebblebrook Hotel Trust to manage the renovations.
The resort includes 80,000 feet of indoor and outdoor event space along with 257 guest rooms, including 18 large suits and a marina. Other amenities include a spa and waterside pavilion, an outdoor saltwater pool and a seasonal ice skating rink.
