The COVID-19 pandemic is wreaking havoc on hotels nationwide, as many of them have posted steep declines in revenue and remain conservative about business going forward.
Formosa International Hotels Corp (FIH, 晶華國際酒店集團) reported revenue of NT$296 million (US$9.84 million) for last month, the lowest in nearly nine years and representing a 41.52 percent retreat from a year earlier, a company regulatory filing showed.
The group, which owns Regent Taipei (台北晶華酒店), the brands Silks Place (晶英) and Just Sleep (捷絲旅), and independent restaurants, has sought to prop up business through discount offers and cross-selling strategies.
Until June 30, guests at the Regent Taipei are to be offered a discounted rate of NT$6,600 per night and win a free night’s stay at the hotel’s affiliated Wellspring by Silks (晶泉丰旅) in Yilan County’s Jiaosi Township (礁溪), the group said.
However, price cuts appear to have had little effect on attracting guests, as people have been advised to stay at home and avoid unnecessary trips amid the pandemic.
FIH in the first quarter of this year accumulated NT$1.36 billion in revenue, a decline of 18.91 percent from a year earlier — the weakest level in six-and-a-half years.
Similarly, FDC International Hotels Corp (雲品國際) reported that revenue last month tumbled 56 percent from a year earlier to NT$92 million, amid softening demand for guestrooms and banquet facilities.
FDC International — which owns the Fleur de Chine Hotel (雲品溫泉酒店), near Nantou County’s Sun Moon Lake (日月潭), and the Palais de Chine (君品酒店), close to Taipei Railway Station, as well as independent dining facilities — said that it has been hit hard by the pandemic, which it expects to also dampen business this quarter.
“The hospitality sector is bearing the brunt of the public health crisis and only competitive brands will survive,” FDC said in a statement.
FDC reported NT$499 million in revenue for the first three months of the year, down 24 percent from a year earlier.
The group said that it has sufficient cash on hand to maintain normal operations.
Landis Hospitality Group (麗緻餐旅集團) reported that revenue last month fell 76.4 percent to NT$16.49 million — its lowest level since the SARS outbreak in 2003.
Cumulative revenue in the first quarter slumped 32.93 percent to a 13-year low of NT$141 million, dragged down in part by the closure of the unprofitable Landis Taichung Hotel (台中亞都麗緻飯店) last month.
The group, which runs the Landis Taipei Hotel (台北亞都麗緻飯店) and has franchise relationships with four other hotels in New Taipei City, Hsinchu and Tainan, has introduced unpaid leave for its employees to help weather the downturn.
Leofoo Tourism Group (六福旅遊集團) reported a 68.65 percent fall in revenue last month to NT$54 million, while cumulative revenue in the first quarter was NT$315 million, down 49.28 percent from a year earlier.
The outbreak has prompted the group to move the closure of the 48-year-old Leofoo Hotel (六福客棧) in Taipei’s Zhongshan District (中山) from the end of the year to next month, although it has yet to set a timetable for the property’s regeneration.
Resort hotels in less populous locations have fared less badly.
Revenue at the Farglory Hotel (遠雄悅來大飯店) in Hualien County last month shrank 21.75 percent to NT$17.54 million, but quarterly revenue grew 9.93 percent to NT$95.11 million, it said.
Similarly, revenue at the Hotel Royal Chihpen (知本老爺酒店) in Tatung County last month slipped 15.71 percent to NT$22.56 million, but quarterly revenue gained 6.72 percent to NT$102 million.
People apparently feel safer at remote tourist resorts, but “social distancing” rules that cap hotel occupancy at 60 percent could slow business, analysts said.
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