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HOTEL NORMANDY, UNION SETTLE SIX-MONTH DISPUTE

 HOTEL NORMANDY, UNION SETTLE SIX-MONTH DISPUTE
 MINNEAPOLIS, Feb. 11 /PRNewswire/ -- Officials of the Hotel Normandy


and Local 17 of the Hotel Employees and Restaurant Employees Union (HERE) today announced that they have reached an agreement that effectively ends six months of picketing at the downtown Minneapolis hotel.
 In a joint statement, Hotel Normandy General Manager Tom Noble, Jr. and Local 17 Secretary/Treasurer and Chief Operating Officer Dan Kuschke said the settlement provides a mechanism for offering reinstatement to all of the hotel's former employees who lost their jobs when the former owners closed the hotel.
 Described by local hotel experts as "a real gem," the Hotel Normandy was purchased by the Noble family some 49 years ago in 1943, and has become a landmark in downtown Minneapolis. It was owned by the Noble family until mid-1986 when the property was sold to Trammell-Crow Corporation, a leading commercial real estate developer.
 Trammell-Crow had plans to develop the full city block, but due to a glut in the local commercial real estate market, the property -- then called the Normandy Inn -- went into bankruptcy in 1990. The hotel was closed and 170 employee jobs were terminated by Trammell-Crow.
 The Noble organization purchased the closed and bankrupt hotel from receivership, investing substantial funds in renovating, refurbishing and upgrading to give the hotel a new look. The hotel re-opened July 15 last year with a new workforce.
 "With 45 years of experience in Minnesota's hospitality industry, we decided to take the financial risk needed to return this failed business to a successful position," Noble said. "We agreed with local leaders and city government officials who said downtown Minneapolis needs a moderately priced high-value hotel with high quality rooms and service to effectively compete in today's marketplace."
 To match its new direction and clientele, Noble said, a whole new approach was needed. "We needed a much more streamlined staff of approximately 80-90 employees, compared to the former staff of about 170. We needed to attract more business travelers and provide the higher level of service they demand."
 Following negotiations, Noble said that under a new re-hiring plan, "We have offered reinstatement to all former employees. Some of the employees will be coming back to work over a specified period of time as our business warrants. Our hope is that our business will come back in such a way that we can fully utilize both current and former employees."
 The union's Kuschke pointed out that last night its members approved, by a 2-1 margin, the settlement offer which includes a new labor contract that could extend to the year 1995.
 "With the help of these employees, we are confident in our ability to return the business to a successful position in today's competitive hospitality industry," Noble said.
 The union's Kuschke concurred. "We're pleased with the settlement and we're enthusiastic about ensuring employment at the Hotel Normandy. We'll do our part to carry on the fine tradition of quality service."
 -0- 2/11/92
 /CONTACT: Tom Noble, Jr. of Hotel Normandy, 612-370-1400; Dan Kuschke of Local 17, Hotel Employees & Restaurant Employees Union, 612-379-4730; or Henry Fischer of M.R. Bolin Public Relations, 612-872-1200, for Hotel Normandy/ CO: Hotel Normandy ST: Minnesota IN: LEI SU: CON


AL -- MN013 -- 8844 02/11/92 13:40 EST
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Date:Feb 11, 1992
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