Grand Mayfull Hotel Taipei (美福飯店) yesterday said it might not achieve its target revenue or occupancy rates this year due to a lack of name recognition and growing competition.
The luxury hotel in Taipei’s Neihu District (內湖) had targeted revenue of NT$1.2 billion (US$37.94 million) in its first year of operations, then-company chairman Chen Chun-tung (陳春銅) said during the hotel’s soft opening in January.
Revenue totaled NT$188.51 million in the first seven months of this year, while occupancy averaged 2.6 percent in the first six months and rose to 7.05 percent in July, Tourism Bureau data showed.
“We will miss our forecast this year, as the hotel needs more time to improve its name recognition and adapt to macroeconomic challenges,” Grand Mayfull communications director Evelyn Kung (龔臻瑜) said.
Its reputation as the most expensive hotel in Taiwan contributed to the poor performance, but Grand Mayfull has made some adjustments, Kung said.
Daily room rates averaged NT$7,362 in July, compared with NT$9,666 in the first half of the year, government data showed.
The hotel was hesitant about making drastic adjustments because of concerns it would have to make difficult upward revisions when the economy turns around, Kung said.
Instead, it opted to promote its brand awareness by sponsoring the recent stay of former NBA player Yao Ming (姚明) of China, and by improving its food and beverage sales.
The hotel is also adding an afternoon tea menu in a bid to make prices more affordable, Kung said.
Food and beverage sales drive more than 80 percent of overall revenue, greater than Chen’s original projection of 70 percent, due to a softer occupancy rate.
Chen left his position and was replaced by meat importer Jack Lee (李冠霆).
The hotel also recruited a new general manager, Bally Lin (林偉德), last month.
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