Formosa International Hotels Corp (FIH, 晶華國際酒店集團) is looking at flattish business or a deeper slowdown this quarter if the COVID-19 pandemic lingers, limiting foreign travelers and keeping domestic customers home.
The conservative view came after revenue in the first quarter tumbled 18.91 percent from a year earlier to a six-and-a-half-year low, with the hospitality industry bearing the brunt of the pandemic’s effects.
“The chance of a rebound is slim in the current quarter, the traditional low season and likely the height of the virus shock,” Regent Taipei managing director Simon Wu (吳偉正) said.
The first quarter had the support of holiday demand from Lunar New Year corporate feasts and family gatherings before travel restrictions and isolation measures slowed economic activity, Wu said.
Social distancing is adding strain to the industry, which has prompted firms to furlough employees or pull out of the market altogether. Others have opted for temporary or partial closures.
Occupancy rates at Regent Taipei, a business facility of 538 rooms in Zhongshan District (中山), were above 80 percent last year, but have been 10 to 20 percent recently, he said.
Food and beverage sales have shrunk 30 percent, although buffet restaurant Brasserie (柏麗廳) remains popular as have Robin’s Steak House and Robin’s Teppanyaki thanks to their long-standing gastronomic reputation, Regent Taipei public relations director Ellen Chang (張筠) said.
Chinese restaurant Silks House (晶華軒) has been affected because of fewer large-scale business and family gatherings, Chang said.
However, most people are pressing ahead with wedding plans, although they have significantly downsized guest lists to lower infection risks, she said.
Food takeout and delivery is the lone bright spot that is lending support to the top line. Unlike peers that rely on food delivery service providers to fill orders, Regent Taipei collaborated with its affiliated Domino’s Pizza’s fleet to tap the new business, Chang said.
Food delivery is expected to play a key role in shoring up gift sales for Mother’s Day and Dragon Boat Festival, Wu said.
In addition, Regent Taipei is launching a series of training programs to stay competitive.
The latest feat is a culinary repertoire that features 500 dishes from the past 30 years that would allow chefs to pass on their gastronomic know-how, Wu said.
Dishes would be introduced at the hotel’s restaurants with an eight-course meal highlighting abalone and steak at the redecorated Robin’s Teppanyaki for NT$3,800 per set, he said.
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