The move comes as management predict occupancy levels will fall below 70 percent.

Yesterday a veteran Sonesta employee said some 200 workers were affected, including housekeeping and dining room staff.

"It is the first time I can ever recall this happening in June. It will mean significant drops in pay.

"Normally staff work a 40-hour week, now that is being cut to 34 or 35 hours.

Maids will be working four days, instead of five.'' Sonesta president Joseph Violi said it was routine to notify staff of hour cutbacks when occupancy rates fell below 70 percent.

"We've told staff some days this month we expect levels will not be 70 percent. We will deal with this on a day-by-day basis.'' Mr. Violi was not sure whether such a move was unprecedented in June, adding: "I have only been here eight months, so I wouldn't know.'' He believed July and August would see a pick-up in business.