In this week’s roundup of news from the Asia/Pacific region: Indian hoteliers waiting for government action; STR performance data; and more.
Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Asia/Pacific region.
India hoteliers seek more government help amid pandemic
Indian hoteliers have found ways to generate revenue, cut back on expenses and efficiently use their resources, helping set them up for the recovery, but they are still looking for more government help, reports HNN contributor Chitra Balasubramaniam.
“The government has done little to support us except talk. All the moratorium and loans offered to (small and medium enterprises) come with riders. Most of it goes to pay the banks, so what is left for day-to-day operations? If coronavirus had happened a few years ago, the hoteliers were in a better position, as there was a surplus. Today, we are reeling under collective losses. Unlike other countries, the government is not supporting us with payroll support,” said Steve Borgia, chairman and managing director at INDeco Leisure Hotels.
STR: Asia/Pacific hotel performance for July 2020
Hotels in the Asia/Pacific region reported improvement over previous months, but performance in July 2020 was still down year over year, according to data from STR, parent company of HNN. Occupancy dropped 36.5% year over year to 46.3% while average daily rate fell 30.6% to $64.35, resulting in revenue per available room dropping 55.9% to $29.78.
“Although up month to month, each metric was the lowest for any July on record in the region,” the release states.
Tokyu Hotels adapts to Japan’s changing future
The coronavirus pandemic and subsequent postponement of the 2020 Tokyo Olympic Games were substantial challenges to Japan’s Tokyu Hotels Group, but the company has a history of tackling those challenges head on through innovation, reports HNN’s Terence Baker.
“We understand deeply that general values and thoughts about work and life changed dramatically in society on this occasion, which made us be painfully aware that we cannot take the same strategy and measures anymore to acquire revenue we have taken before COVID-19. It’s time to change our outlook,” said Hiroyuki Mizuno, executive officer and SVP of sales and marketing.
“We understand that a new business style adapting (to) this new era is necessary and essential. For instance, first of all, the reconsideration of target audience is required since we'd focused on the group leisure travelers before but the demands of accommodation for the (financially independent travel), including family travelers, will expand now.”
Deals and developments
- Thailand’s Minor Hotels Group will rebrand the Maia Luxury Resort & Spa in Seychelles as the Anantara Maia Seychelles Villas.
- China’s Vantone Holdings acquired the 23-story Queen’s Hotel in Sai Ying Pun district for 310 million Hong Kong dollars ($40 million).
Compiled by Bryan Wroten.