Imperial Hotel Taipei (台北華國大飯店) is to shut down at the end of October, succumbing to a business decline induced by social distancing restrictions and border controls to curb a COVID-19 outbreak.
The five-star hotel with 326 guest rooms in the city’s Zhongshan District (中山) yesterday confirmed that it is to terminate its leasing contract with Taiwan Life Insurance Co (台灣人壽) as the outbreak wreaked havoc on its operations.
“We do not see a light at the end of the tunnel,” although the government has conditionally lifted the ban on dine-in services this month, while keeping a tight grip on gatherings and border controls, the hotel’s marketing head, Wu Yun-chia (伍允嘉), told reporters.
Screen grab from the Imperial Hotel Taipei Web site
The 50-year-old hotel and Taiwan Life Insurance decided to part ways after a court mediation last year failed to iron out their differences over rent concession terms.
Imperial Hotel tried to cope with the outbreak by turning the hotel into quarantine facility, but it has failed to curb losses.
A nationwide level 3 COVID-19 alert imposed on May 19 stifled domestic tourism, as well as food and beverage sales.
Although the Central Epidemic Command Center lowered the alert level to 2 late last month, people are still wary of dining out amid fears of lingering local infections.
Wu said Imperial Hotel is looking for a new location to keep its Chinese restaurant, famed for its roast duck cuisine, alive.
It will also press ahead with plans to open a new Imperial Hotel in a mixed-use complex integrated with the MRT Shihlin Station in July 2023, Wu said.
“Business might not improve in the next two years, so the hotel has opted out during the hiatus,” she said.
The backdrop allows the hotel to retain some employees and related details would be released by the end of this month, Wu said.
Formosa International Hotels Corp (FIH, 晶華國際酒店集團) chairman Steven Pan (潘思亮) said he was not surprised by Imperial Hotel’s exit, comparing the hospitality sector to a “critically ailing, but forgotten” patient.
The government has declined to provide wage subsidies as it did last year for hotels dependent on foreign tourists, even though the negative impact of the outbreak is much more serious this time, Pan said on the sidelines of the company’s shareholders’ meeting.
A proposed quintuple stimulus voucher program would be of little help to Taipei-based hotels, as people in the Greater Taipei area — who form the bulk of domestic tourists — prefer to travel to eastern and southern Taiwan, Pan said.
FIH shareholders approved the distribution of a cash dividend of NT$4.39 per share from the conglomerate’s profit last year of NT$733 million (US$26.17 million), or earnings per share of NT$5.18.
The results represented a 47.08 percent decline from a year earlier, dragged by the COVID-19 outbreak.
Pan was re-elected chairman at the board elections.
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would
RISING: Strong exports, and life insurance companies’ efforts to manage currency risks indicates the NT dollar would eventually pass the 29 level, an expert said The New Taiwan dollar yesterday rallied to its strongest in three years amid inflows to the nation’s stock market and broad-based weakness in the US dollar. Exporter sales of the US currency and a repatriation of funds from local asset managers also played a role, said two traders, who asked not to be identified as they were not authorized to speak publicly. State-owned banks were seen buying the greenback yesterday, but only at a moderate scale, the traders said. The local currency gained 0.77 percent, outperforming almost all of its Asian peers, to close at NT$29.165 per US dollar in Taipei trading yesterday. The
RECORD LOW: Global firms’ increased inventories, tariff disputes not yet impacting Taiwan and new graduates not yet entering the market contributed to the decrease Taiwan’s unemployment rate last month dropped to 3.3 percent, the lowest for the month in 25 years, as strong exports and resilient domestic demand boosted hiring across various sectors, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday. After seasonal adjustments, the jobless rate eased to 3.34 percent, the best performance in 24 years, suggesting a stable labor market, although a mild increase is expected with the graduation season from this month through August, the statistics agency said. “Potential shocks from tariff disputes between the US and China have yet to affect Taiwan’s job market,” Census Department Deputy Director Tan Wen-ling
UNCERTAINTIES: The world’s biggest chip packager and tester is closely monitoring the US’ tariff policy before making any capacity adjustments, a company official said ASE Technology Holding Inc (日月光投控), the world’s biggest chip packager and tester, yesterday said it is cautiously evaluating new advanced packaging capacity expansion in the US in response to customers’ requests amid uncertainties about the US’ tariff policy. Compared with its semiconductor peers, ASE has been relatively prudent about building new capacity in the US. However, the company is adjusting its global manufacturing footprint expansion after US President Donald Trump announced “reciprocal” tariffs in April, and new import duties targeting semiconductors and other items that are vital to national security. ASE subsidiary Siliconware Precision Industries Co (SPIL, 矽品精密) is participating in Nvidia