First Five-Star Hotel Announces Bankruptcy in China

(CRI) The Cixi Landison Plaza Hotel in the eastern city of Ningbo has filed for bankruptcy.

It has become the first 5-star hotel in China to go under.

The Landison Plaza has debt worth around 450-million yuan, or some 70-million US dollars.

The hotel, which won an award just 2-years ago, was built with an initial investment of 260-million US dollars.

High-end hotels in China have seen a dramatic downturn in occupancy over the past couple of years amid the government's austerity drive among officials.

Zhao Huanyan is a Chinese hotel consultant.

"Five-star hotels are facing the fact that supply exceeded demand. So now all high-end hotels are trying to mark down their prices as a way to attract consumers. But what I feel they need to do is be more innovative and diversify their products and services. They should be upgrading their management and be promoting direct sales."

There are an estimated 850 5-star hotels currently operating in China.

Source: CRI

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

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