Top hotels in China seek alternatives as officials stay away

High-end hotels have seen their income tumble since China's government imposed restrictions on discretionary spending by officials.

According to Meadin.com, a platform devoted to hotel industry news, 60 five-star hotels in Beijing lost money in 2014, with occupancy rates falling as low as 60% and average room rates dropping.

The China Tourist Hotel Association estimated that 50 domestic hotels have asked that their star rating be lowered as the officials who formerly made up a sizeable portion of their clientele are no longer allowed to stay there and some high-end hotels have begun to sell property, enter bankruptcy proceedings or even turn their properties into office buildings.

Wang Qindao, deputy head of the China Convention and Exhibition Society, said the transformation of hotels is inevitable, but with the disappearance of government-funded tours and parties, high-end hotels are having trouble devising alternate strategies.

Qian Jin, president for Greater China of Starwood Hotels and Resorts, said that as long as one can see through the rapidly changing market, there are opportunities to replace the lost sources of revenue. 

Qian said that after the government curbed government-funded tours and parties, family and social gatherings have increased and hotels have made adjustments to cater to these new trends and cut losses to a minimum.

Wedding receptions, for example, represent a business that is fast growing, he said. "There are 12,000 wedding banquets held in our group's Sheraton Hotels annually. We supply the venue, the food, and special care and supplementary services to the bride."

Hotels that host weddings are typically only responsible for the venue and the food, but Qian said China's rising spending power has led to greater demand for lavish weddings, while special ceremonies customized to the needs of the client have become popular.

Qian said that at the group's Sheraton in Xishuangbanna, a scenic area in southwest China's Yunnan province, outdoor weddings and complementary facilities are now available, giving clients another option.

Source: Want China Times 

from China Travel & Tourism News http://ift.tt/1iB6EFm

Put the internet to work for you.

Delete or edit this Recipe