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Asia-Pacific

Chengdu Covid Fears Spurs Lock Down

Alan Woinski
September 1st, 2022 at 11:28 AM EDT

Skift Take

  • STR reported China hotel RevPAR was up 48.2% year over year against very easy comps. When compared with this week in 2019, RevPAR was down -20.4%. Absolute occupancy in China last week was 59.1% versus 43.1% in the same week last year.
  • Chengdu reported 1,000 Covid cases and the Southwestern city in China has pretty much been sealed off. About 70% of the flights have been suspended to and from the city.
  • Hong Kong is targeting an end to hotel quarantine in November, ahead of a summit of global bankers and an international rugby competition.

STR reported China hotel RevPAR was up 48.2% year over year against very easy comps. When compared with this week in 2019, RevPAR was down -20.4%. Absolute occupancy in China last week was 59.1% versus 43.1% in the same week last year.

It never is good for the hotel space when a city of 21 million people is locked down. Chengdu reported 1,000 Covid cases and the Southwestern city in China has pretty much been sealed off. About 70% of the flights have been suspended to and from the city. The problem for the rest of China is that Chengdu is a major transit hub in Sichuan province and a governmental and economic center. Once again we ask you how people are going to travel for the October Golden Week knowing quite well the odds of Covid cases being reported where they are during a holiday week is high as are the chances they will be locked down?

While Macau toes the Beijing line, Hong Kong seems relatively defiant. They are targeting an end to hotel quarantine in November, ahead of a summit of global bankers and an international rugby competition. Health officials are pushing back on the plan as Hong Kong seems to be trying to keep it quiet but cases are surging there. Bloomberg said new Hong Kong Chief Executive John Lee wants to signal Hong Kong is back in business despite Health Secretary Lo Chung-mau pleading to tighten restrictions as cases are surging. A Hong Kong government spokesperson officially said there was no disagreement in the administration regarding the approach on hotel quarantine. One top government advisor told Bloomberg Covid is getting so bad they are expecting Hong Kong to peak at 20,000 cases per day later this month. There were nine fatalities on Wednesday. The Bloomberg story said Hong Kong is hoping for a better climate from Beijing after President Xi’s third term is secured on October 16. He is expected to trumpet China’s Covid policies as superior to the rest of the world because they prevented widespread death. A less lethal variant clearly had nothing to do with that in Xi’s world.

Hilton announced the opening of Hilton Hiroshima, marking Hilton’s first flagship branded hotel there. The hotel is managed by Hilton under an agreement with Fujimi-cho Development G.K., a Special Purpose Vehicle set up by Setouchi Brand Corporation. The hotel is situated in the center of Hiroshima city, within a 10 minute drive from Hiroshima Station, within walking distance from the UNESCO World Heritage Site, “Atomic Bomb Dome”. The newly built 420 room Hilton Hiroshima features one of the largest convention facilities in the region with 19 banquet and meeting rooms. Additional hotel facilities include four restaurants, an executive lounge, wedding chapel, fitness center, indoor pool, sauna and the Spa by L’OCCITANE. This is the first L’OCCITANE spa to open in the region. The guest rooms, including suites, are located on floors seven through 22. The openings of Hilton Hiroshima and Hilton Dubai Palm mark continued global growth for Hilton Hotels & Resorts by reaching its 600th property.

Radisson Hotel Group announced significant expansion plans for Australasia with a newly expanded brand portfolio, strategic partnerships and diverse business models that will enable the group to achieve exponential growth across the region by 2025. RHG said the expansion will target capital cities and popular regional destinations across Australia and New Zealand, such as Sydney, Melbourne and Brisbane and will be driven through a combination of growth models such as strategic alliances and master license agreements with its partners. RHG will also seek opportunities to make tactical mergers & acquisitions and will offer owners attractive, cost-effective options for property conversions, all powered by a new business unit located in Sydney. RHG said they are doubling down on their mid-scale brands in the market – with Radisson Individuals, Country Inn & Suites by Radisson and Radisson RED spearheading the growth of its portfolio in Australasia. The group has also secured the rights to develop and operate 7 Days, a premium economy brand and Metropolo, through individual master license agreements with its affiliates. The group also has secured rights to develop and operate the Golden Tulip, Kyriad and Campanile brands, from Louvre Hotels Group.

IHG Hotels & Resorts announced an agreement with Pan Pacific International Holdings Corporation to open Hotel Indigo Tokyo Shibuya in late 2023. This will be the fourth Hotel Indigo-branded hotel in Japan. IHG has 254 open or pipeline hotels worldwide for their lifestyle boutique hotel brand. Hotel Indigo Tokyo Shibuya will be located on top of the ‘Dogenzaka Don’, a large, mixed-use complex being developed as part of the Shibuya Ward Dogenzaka 2-chrome Development Plan. The hotel will have 272 guest rooms, facilities such as a neighborhood café & bar with an outdoor terrace, and a fitness gym. Rooms occupying the upper floors will offer panoramic views, which extend as far as Mount Fuji and Tokyo Sky Tree on a clear day. IHG has a total of 50 open or pipeline hotels in Japan under six brands.

Marriott International’s first resort in the Philippines, Sheraton Cebu Mactan Resort, opened today. The hotel has 261 rooms and suites, state of the art fitness center, the first Sheraton Spa in Asia Pacific, meeting rooms and culinary options. The resort is located on Mactan Island in Lapu-Lapu City, Cebu along Punta Engano Road, a 30 minute drive from Mactan International Airport.

A new luxury golf and leisure resort being developed by Hann Philippines Inc., owner and operator of Hann Casino Resort in the Clark Freeport Zone, is set to become home to the country’s first and only PGA-affiliated golf courses and player development facilities. The Hann Holdings Inc. announced they signed a deal with the Professional Golfer’s Association of America, setting the stage for the project that will see three world-class, 18-hole golf courses built as part of the upcoming Hann Reserve development. Hann Reserve, at 450 hectares, will feature an array of luxury accommodations, branded hotels and resorts, mixed-use commercial center, premium villas and residences and a 10-hectare public park.

Lemon Tree Hotels announced its latest signing – Lemon Tree Hotel, Rajkot. The property is expected to be operational by March, 2023 and shall be managed by Carnation Hotels Private Limited, the management arm of Lemon Tree Hotels Limited. The property will feature 45 rooms, complemented by a restaurant, swimming pool, fitness center and a meeting room. The hotel is owned by M/s Sanjayraj & Co and will be Lemon Tree’s sixth hotel in Gujarat.

Absolute Hotel Services group is set to expand its Thailand footprint by announcing U Koh Chang, the newest addition to the U Hotels & Resorts brand. U Koh Chang will be located on Koh Chang, Thailand’s third largest island and the biggest in Eastern Thailand. The project’s existing resort will be renovated, re-branded and re-launched in late 2023. U Koh Chang will feature 64 guestrooms with full facilities, including a swimming pool, fitness center, food & beverage outlets and spa.

Alan Woinski
September 1st, 2022 at 11:28 AM EDT

Companies: Country Inn & Suites by Radisson, Hann Philippines, Hilton Hotels & Resorts, Hotel Indigo, IHG Hotels & Resorts, Lemon Tree Hotels, Marriott International, Pan Pacific Hotels Group, Radisson Hotel Group, Radisson Individuals, Radisson Red, U Hotels & Resorts

Locations: Cebu, Chengdu, China, Hiroshima, Hong Kong, Koh Chang, Melbourne, New Zealand, Rajkot, Sydney, Tokyo

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