The Modern Security Challenge

The hospitality industry faces an evolving landscape of security threats that demand a new approach to safety. With the increasing prevalence of both physical and digital threats, hotels, event spaces, and other hospitality establishments are leaning towards 'must adopt' integrated security measures to protect their guests, staff, and assets. Recent high-profile incidents, ranging from cybersecurity breaches to unauthorized camping and public drug use, have highlighted the importance of developing comprehensive security strategies that blend physical security with cutting-edge technology and proactive crisis management. The following is an insight and observation from our perspective and exposure to these threats during 2024, with the intent of bringing awareness to the current threat landscape.

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Physical Security Evolution

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Access Control Systems

Modern hospitality establishments are rapidly moving away from traditional key cards, implementing alternative access control solutions that offer enhanced security and convenience. Leading hotels we have supported during events are adopting measures such as:

Biometric Verification Systems: Facial recognition and fingerprint scanning are becoming common features in restricted areas and high-security zones. These systems not only enhance security but also create a seamless guest experience, as guests can use biometrics to access rooms, gym facilities, or executive lounges without the need for physical keys or cards. These systems can be private but be aware of where this information could be stored. We recommend using multiple layers of biometrics when possible.
Mobile-First Security Protocols: Keyless entry using smartphones allows guests to access their rooms seamlessly while providing an additional layer of security. Mobile access like this is integrated currently into hotel loyalty apps, which enhances both security and guest engagement. This approach also enables hotels to communicate real-time updates directly to guests, improving the overall experience.
AI-Powered Surveillance: Advanced surveillance systems use artificial intelligence to identify suspicious activity, improving response times and preventing incidents before they escalate. AI-powered cameras (Computer Vision) are capable of facial recognition, movement analysis, and detecting unusual patterns, which helps prevent incidents like unauthorized entry, theft, or vandalism. AI systems can also distinguish between guests, staff, and unauthorized individuals, allowing security teams to focus their attention where it is most needed. As AI is rapidly integrated into almost every technology we use, we are seeing it slowly replace the standard motion detector or laser alarm sensor system. AI can communicate with IoT devices (Smart Sensors) and interperate the raw data of a signal, turning into actions, plans, or call on other agentic systems to process thedata further.
Smart Locks with Audit Trail Capabilities: Smart locking systems maintain audit trails, allowing facility management to monitor entry and exit, which provides valuable insights in case of any incident. These audit trails are crucial during investigations of security breaches or guest/patron disputes, as they provide an accurate record of who accessed which areas and when. Smart locks also offer remote access capabilities, enabling hotel staff to assist guests with room access issues without needing to be physically present.

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Emergency Response Planning

In today’s environment, we recommend that hospitality properties have well-developed emergency response plans in place to effectively handle various crisis scenarios, such as:

Mass Casualty Incidents: The threat of mass casualty events, including active shooter situations and domestic terrorism, has become a significant concern. Organizations (and even individuals) should maintain updated evacuation plans, shelter-in-place protocols, and direct communication channels with first responders. Regular drills and training exercises involving both staff and local law enforcement are essential to ensure that everyone knows their roles in the event of such an emergency.
Natural Disasters: We have learned from the cold begining of 2024, floods, landlslides, to this recent cyclone that properties in disaster-prone regions need to prepare for hurricanes, earthquakes, and other natural threats, with procedures in place to minimize disruption and ensure guest and staff safety. This includes having emergency supplies on hand, backup power systems, and clear communication plans to keep guests informed during an emergency.
Active Threat Situations: Facilities should also prepare for active shooter situations and other forms of violent crime. This includes clear protocols for both staff and guests to minimize risk. Training staff on how to recognize potential threats, de-escalate situations, and respond appropriately is critical to reducing the likelihood of violence. Many organizations are also investing in "panic buttons" or other discreet alert systems that staff can use to call for immediate help in an emergency.
Medical Emergencies: Properties should be ready to deal with medical emergencies, including using automated external defibrillators (AEDs) and coordinating with local EMS services. Staff should be trained in basic first aid, CPR, and the use of AEDs to provide immediate assistance until medical professionals arrive. Hotels should also have clear procedures for communicating with emergency services and guiding them to the appropriate location within the property.

RSU provides resources, training, and services to augment and enhance your organization's emergency planning. You can schedule a meeting to discuss your needs with us at rsusecurity.com/book-a-training

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Loitering, Camping, and Opioid Abuse

Loitering and unauthorized camping on properties have become a pressing issues, particularly in areas facing increased homelessness and opioid abuse. The presence of unauthorized individuals can lead to:

Safety Concerns: Increased risks of opioid abuse, public drug use, and confrontations with staff and guests. Organizations located in urban areas with high opioid abuse rates should take additional precautions, including increased physical security patrols, strategic lighting to deter loitering, and coordination with local law enforcement and social services to address the root causes of the problem.
Property Damage: Damage caused by unauthorized camping, including littering, vandalism, and other forms of property misuse. In the communities we serve, regular patrols of vulnerable areas, such as parking lots and back entrances, helped identify issues early before they escalate into significant damage or safety hazards later on. A regular security presence in these areas has proven more than effective with trained, capable personnel.
Negative Guest Experience: Guests may feel unsafe or uncomfortable, leading to negative reviews and a decline in business. To mitigate this, clubs,hotels, and other organizations should balance security measures with a compassionate approach. Collaborating with local outreach programs can help provide assistance to those in need while maintaining the safety and comfort of guests.

The U.S. Supreme Court's 2024 Grants Pass decision has impacted how cities can address unauthorized camping, allowing enforcement of criminal penalties for sleeping on public property. This has led to increased enforcement measures in several cities in Washington, creating a complex legal environment for hospitality businesses to navigate. We recommend orgnaization leaders stay informed of local regulations and adapt their policies to ensure compliance while working with community organizations to find humane solutions to homelessness and drug abuse issues.

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Cybersecurity Landscape In Hospitality

With the rise of technology in the hospitality industry and across virtually every other sector, the digital landscape presents significant vulnerabilities. The financial and reputational costs of cyberattacks are staggering, as evidenced by recent incidents that have targeted major hospitality brands. Moreover, the recent D-Link controversy has highlighted the critical need for proper network infrastructure, particularly in organizations without dedicated IT teams or third-party IT service providers.

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Recent Security Incidents

Omni Hotels & Resorts Cyberattack (2024): In March 2024, Omni Hotels & Resorts experienced a major cyberattack that forced the company to shut down multiple systems. The Daixin Team ransomware group initially demanded $3.5 million, later reducing the demand to $2 million. The attack severely disrupted check-in processes, room key systems, and guest communications, leading to long delays and negatively impacting guest satisfaction.
MGM Resorts Cyberattack (2023): MGM Resorts suffered a cyberattack that resulted in over $100 million in damages. The attack disrupted operations for several days, highlighting the vulnerability of integrated booking systems and digital services in the hospitality industry.
Caesars Entertainment Ransom Payment (2023): Caesars Entertainment faced a data breach that compromised their loyalty program, ultimately leading to a $15 million ransom payment. This incident exposed the critical need for improved cybersecurity protocols to protect guest data.
D-Link Controversy (2024): The recent vulnerabilities discovered in D-Link routers and NAS devices further illustrate the risks posed by outdated or unsupported networking hardware. Over 92,000 devices worldwide were found to have critical vulnerabilities that remain unpatched. These unaddressed flaws have created opportunities for attackers to exploit weaknesses, leaving many organizations, including those in the hospitality sector, at risk of cyberattacks.

The average cost of a data breach in the hospitality sector in 2023 rose to $3.36 million, with multiple hotels reporting ransomware attacks, breaches of guest information, and compromised payment processing systems. These incidents highlight the need for robust cybersecurity measures and an emphasis on modern, secure infrastructure in hospitality and beyond. Although RSU does not provide full time cybersecurity services, we can respond to incidents, assist with mitigation, and form a response. We also offer security testing, investigations, and threat intelligence services.

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Hospitality Industry Recovery and Challenges (2020-2024)

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Initial Pandemic Impact

The COVID-19 pandemic dealt a significant blow to the hospitality industry, with employment plummeting 48.6% from February to April 2020. The global industry lost approximately 62 million jobs, with the accommodation sector being the hardest hit. By July 2023, the accommodation sector was still 12% below pre-pandemic employment levels.

Current Industry Status

Employment Recovery: By February 2023, the hospitality industry employed 1.866 million Americans, but was still down by 254,000 jobs (12%) compared to pre-lockdown levels. Only the performing arts and sports sectors have fully returned to pre-pandemic employment levels.
Financial Performance: Total Revenue Per Available Room (TRevPAR) reached $211.72 in 2023, an 8% increase from 2022 but still below the 2019 peak of $230. Meanwhile, operating expenses rose by 9.4% year-over-year by October 2023, reflecting ongoing financial pressures as the industry navigates recovery.

Segment Observation

Luxury Segment: The luxury segment has seen the fastest recovery among all hospitality segments, surpassing pre-pandemic profit levels by 16.6%. Luxury hotels have been particularly successful in managing increased wage costs and maintaining high service standards.
Full-Service Hotels: Full-service hotels were initially among the hardest hit, experiencing a 67% decline in RevPAR. However, group travel returned strongly in 2022, and the upper-upscale segment led growth in 2023 with a 15.5% increase in revenue. These hotels have benefitted from the resurgence of conferences, weddings, and other group events.

Current Challenges

Operational Costs: The industry has faced a 55.2% increase in operating costs since the pandemic began. Labor expenses have grown by 12.3% in 2023, and food and beverage labor costs rose by 9.1%. These rising costs have placed a strain on profitability, particularly for mid-range and budget hotels.
Staffing Issues: The industry continues to grapple with staffing shortages, with 170,000 hospitality job vacancies still unfilled. As a result, 45% of operators have been forced to reduce capacity or operating hours, while 58% of hospitality leaders report significant increases in wage costs. These challenges underscore the need for effective recruitment, competitive wages, and employee retention strategies to support the industry's recovery.

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Emergency Response and Crisis Management

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Mass Casualty Preparedness

We recommend prioritizing training and preparedness to handle mass casualty events in any organization. Comprehensive emergency response plans should include evacuation procedures, shelter-in-place protocols, and coordination with law enforcement and emergency medical services to ensure swift action during a crisis. Given the high-profile nature of hospitality venues, facilities should be prepared for scenarios including active shooter situations, bomb threats, and domestic terrorism.

Regular Drills and Exercises: Organizations should conduct regular emergency drills involving both staff and guests to ensure everyone understands evacuation routes and safety protocols. These exercises should also involve local law enforcement and emergency medical services to foster seamless coordination during an actual crisis.
Advanced Guest Communication Systems: Organizations should have advanced communication systems in place to relay information to guests quickly and efficiently during emergencies. This may include PA systems, in-room notifications, and mobile alerts through the hotel app.
Incident Response Teams: Creating a dedicated incident response team within your establishment is critical. This team should be trained to handle various emergency scenarios, including providing first aid, assisting guests during evacuation, and liaising with emergency services. Each member of the response team should have clearly defined roles and responsibilities to minimize confusion during a crisis.

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Pandemic Response Lessons

The COVID-19 pandemic underscored the importance of robust crisis management strategies. Businesses implemented health protocols, contactless check-ins, remote operations capabilities, and enhanced hygiene measures—demonstrating the value of effective crisis communication and flexibility during unforeseen global events. The industry learned valuable lessons about maintaining business continuity during a public health crisis, emphasizing the need for adaptability and comprehensive planning.

Business Continuity Planning: Develop comprehensive business continuity plans that address potential disruptions, whether from pandemics, natural disasters, or other crises. These plans should outline procedures for maintaining operations, protecting employee health, and ensuring guest safety.
Enhanced Health and Safety Protocols: During the pandemic, organizations introduced rigorous cleaning regimens, social distancing measures, and contactless interactions to ensure guest safety. These practices have set a new standard for hygiene and safety, which is expected to continue as a best practice within the industry.
Supply Chain Resilience: The pandemic highlighted vulnerabilities in global supply chains. Teams must diversify their suppliers and maintain an inventory of essential items to ensure they can continue to operate during disruptions. This includes stockpiling personal protective equipment (PPE), cleaning supplies, and non-perishable food items.
Remote Operations and Technology Integration: Organizations should integrate technology that allows for remote operations, including virtual customer service, automated booking, and digital concierge services. This ensures that, even in the face of staff shortages or health risks, guest services can continue with minimal disruption.

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Intelligence and Analytics

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Threat Assessment and Risk Analysis

Intelligence gathering and analytics are becoming increasingly vital in predicting and preventing threats in security and safety operations. Organizations are leveraging:

Predictive Analytics: Analyzing trends, patterns, and behaviors to anticipate potential risks before they materialize.
Incident Metrics and Performance Indicators: Using data from past incidents to improve response times and develop more effective security measures.

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Future-Proofing Security

The future of hospitality security involves a continued emphasis on emerging technologies that enhance the guest experience while ensuring their safety:

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Robotic Security Patrols

Knightscope K5 Autonomous Security Robots (ASRs) are being deployed across multiple U.S. hotels, including recent implementations in Portland, Oregon and Vancouver, Washington. These robots provide:

Autonomous 24/7 surveillance
Perimeter monitoring
Threat identification
Emergency response coordination

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Blockchain Identity & Access Control

The hospitality industry is implementing blockchain technology for enhanced security and access management. Key features include:

‍Identity Management

Encrypted guest identity storage
Direct verification against official documents
Secure check-in protocols
Fraud prevention systems

‍Access Systems

Real-time inventory management
Direct booking capabilities
Secure payment processing
Reduced third-party dependencies

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Biometric Authentication

Modern hotels are implementing sophisticated biometric systems, as demonstrated by the FlyZoo Hotel in Hangzhou. Their system includes:

‍Check-in Options

Local guest facial recognition through mobile apps
Foreign visitor scanning kiosks
Automated verification systems

Access Control

Fingerprint authorization for payments
Facial recognition for amenity access
Biometric room entry
Personalized service delivery

The integration of these technologies has shown significant improvements in both security and guest experience, with 41% of hotel visitors showing increased loyalty when recognized through biometric systems.

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Professional Security Partnership

The increasingly complex security landscape in the hospitality industry calls for specialized support. By partnering with a trusted and passionate security and risk consulting provider, hospitality establishments can ensure a safe and welcoming environment for all guests.

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Why Choose RSU Security?

RSU Security offers tailored security, safety, and training solutions designed to meet the unique challenges of the hospitality industry and beyond:

Integrated Security Services: Our services include comprehensive risk assessments, traditional security guard services, technology integration, emergency response planning, and staff training programs.
24/7 Support: RSU provides continuous monitoring and rapid response capabilities to address any incidents that arise, like workplace violence or uncooperative patrons, ensuring a prompt and professional resolution.
Advanced Technology Solutions: We research and find the best solutions for your advanced surveillance systems, smart locks, and integrated alarm systems to help keep your property safe.

For more information on how RSU Security can support your organization, visit rsusecurity.com and discover how our expertise can protect your guests, staff, and assets in today’s increasingly complex security landscape.

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