Property owners who’ve never experienced a mold problem, or who’ve only dealt with small mold problems, might be surprised to learn how significant the costs associated with mold and its damage truly are.
Mold can do extensive damage to drywall, wood and other cellulose-rich materials.
Case Study: The Hilton Hawaiian Village
The cost of the mold contamination at Hilton Hawaiian Village has reached an estimated $55 million, because of a $15-million jump in the expected cost of spending on system and product improvements, Hilton Hotels Corp. said on March 15, 2011.
The California-based company plans $35 million in mold-related spending this year, which is in addition to $20 million in charges taken by Hilton last year for investigation and remediation efforts.
It’s still not clear how much of the damage will be covered by insurance, Hilton officials told analysts today, March 15, 2011.
Hilton Hawaiian Village shuttered the $95 million Kalia Tower six months ago, after mold was found growing uncontrollably in guest rooms. The hotel ripped out all of the furnishings in each room, including wallpaper, carpeting, and drapes, to avoid further contamination.
Hilton expects to reopen the 24-storey tower that houses 453 rooms between April and June, which means the tower will be closed for about a year.
If you own a hotel or a bed and breakfast in Montreal and surrounding area, be aware that this can happen to you – your property may not be fully protected against mold.
Mold is not picky about where it chooses to grow and thrive and the truth is that most businesses can’t afford to bear the expense of a mold attack.
Have your hotel, or any other business you might own, inspected for mold today to prevent major structural damage and the costs associated with it.