UNITE HERE Local 11 Rockpoint Investor Alert: Union Files Cal/OSHA Complaint Alleging Rat, Cockroach and Maggot Sightings at The Westin Long Beach, Raises Performance Issues at Rockpoint-managed funds
2024年7月27日 - 3:10AM
ビジネスワイヤ(英語)
Investors should be aware of issues regarding the Westin Long
Beach hotel, owned by real estate private equity firm Rockpoint,
that present potential Environmental, Social and Governance risks.
Hotel workers at the Rockpoint-owned hotel concerned for their
health and safety have submitted a complaint to Cal/OSHA.
Investors should also be aware of Rockpoint’s investment
performance. Rockpoint Real Estate Fund V, which owns the Westin
Long Beach hotel, currently has an -1.36% IRR, according to the
most recent performance records from data provider Pitchbook.i
Rockpoint Real Estate Fund V’s performance lags 130 peer funds by
an average of 11.45%. But this is not the only Rockpoint fund that
appears to be struggling. Here is a list of additional funds that
investors should note, all of which are performing in the bottom
25% of peer funds (4th quartile):ii
Fund
IRR
IRR vs. Benchmarks
Fund Quartile
Rockpoint Growth & Income Real Estate
Fund I
2.79
%
-7.77
%
4th
Rockpoint Growth & Income Real Estate
Fund II
-1.51
%
-12.54
%
4th
Rockpoint Growth & Income Real Estate
Fund III
-13.58
%
-24.97
%
4th
Rockpoint Real Estate Finance Fund I
-5.58
%
-13.18
%
4th
Rockpoint Real Estate Fund V
-1.36
%
-11.45
%
4th
Rockpoint Real Estate Fund VI
6.25
%
-4.45
%
4th
On July 20th, workers protested outside the Westin Long Beach
where supporters wore rat costumes and related props to draw
attention to workers’ allegations that they have observed what
appeared to be rats in the food storage room of the Hotel’s kitchen
and roaches in the Hotel’s banquet kitchen. Workers documented
alleged rodent sightings as recently as mid-June of 2024. In July
2023, a worker also documented an alleged sighting of what appeared
to be maggots on unwashed dishes in the Hotel’s banquet
kitchen.
The Westin Long Beach has been embroiled in a fierce labor
dispute with its employees since the union contract expired on June
30, 2024. Westin employees join workers across the Los Angeles area
who have fought for and won better wages and working conditions in
what has become the largest hotel worker strike in modern history.
The workers’ primary contract goals include wage increases to keep
pace with the soaring cost of housing in Long Beach, quality and
affordable health insurance, a pension to retire with dignity, and
humane workloads.
“As hotel workers we strive to provide the best customer service
to our guests, and we deserve a safe and healthy working
environment. We urge the hotel to take immediate action to ensure
that our workplace is safe. They need to listen to us as we fight
for what we deserve,” said Wendy Bonilla, one of the complainants
and a worker at the Westin Long Beach.
Rockpoint investors should ask the firm the following
questions:
- Did Rockpoint fail to take appropriate steps to prevent the
alleged presence of rats and roaches at their Westin Long Beach
hotel, as well as the alleged presence of what appeared to be
maggots on unwashed dishes in the hotel’s banquet kitchen?
- How and when will Rockpoint address health and safety concerns
brought by Westin Long Beach workers to the California Division of
Occupational Safety and Health?
- Why has Rockpoint failed to resolve the labor dispute at the
Westin Long Beach by agreeing to a contract that over 60 other
Southern California hotels have signed?
- What steps will Rockpoint take to guarantee labor peace in
their current and future hospitality investments that would protect
investors from ESG risks?
- What explains Rockpoint’s poor performance relative to peers as
reflected in the data summarized above?
UNITE HERE Local 11 is a labor union representing more than
32,000 hospitality workers in Southern California and Arizona that
work in hotels, restaurants, universities, convention centers and
airports.
______________________________ i Performance data for
Rockpoint-managed funds from data provider Pitchbook as of Q1 2024
for Rockpoint Real Estate Fund V ii Performance data for
Rockpoint-managed funds from data provider Pitchbook as of Q1 2024
for Rockpoint Real Estate Funds V and VI and as of Q4 2023 for
Rockpoint Growth & Income Real Estate Funds I, II and III and
Rockpoint Real Estate Finance Fund I
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version on businesswire.com: https://www.businesswire.com/news/home/20240726223594/en/
Rachele Smith rsmith@unitehere11.org (623) 670-9889