70% of OYO hotels in China have reopened — and bookings are rising slowly, the company says
- As China stumbles back to normalcy,
OYOtoo is seeing signs of recovery.
- While 70% of
OYO hotelsin China are now operational, it plans to open the remaining hotels in the next 30 to 45 days.
- OYO is the largest hospitality chain in China.
AdvertisementWhile 70% of OYO hotels in China are now operational, it plans to open the remaining hotels in the next 30 to 45 days, the company told Business Insider.
OYO is present in over 337 cities and has 500,000 rooms in China. In FY19,
However, as China stumbles back to normalcy, OYO too is seeing signs of recovery as compared to the shut business during the lockdown. In some markets, the occupancy level is rising faster. “We have seen a consistent and consecutive occupancy rise in the last five weeks. We are witnessing over 50% occupancy levels in South China in comparison to North China,” said the company.
AdvertisementMeanwhile, the likes of Marriott have seen their occupancy levels rise from 10% in mid February to 30% now, said a report.
In late April, hotels in China began to open up. Hilton, InterContinental too have opened doors and are hoping for the numbers to grow. "Reopening all our hotels in the Chinese mainland is the first step in a measured global recovery process. We are confident that there are brighter days ahead,” a report quoted Chris Nassetta, president and CEO of Hilton.
A Financial Times report quoted InterContinental group and said “its bookings were continuing to steadily improve.”
“We have seen positive trends with respect to the average room prices. They are emerging strongly in comparison to the drops which were expected earlier,” said OYO.
OYO’s business has been severely hit because of the coronavirus pandemic. With China operations hit since January itself,
As it opens doors in China again, the company is focussed on the importance of cleanliness and hygiene and is also doing temperature screening of guests and staff at the hotels.
AdvertisementGlobally its revenues have fallen by 50-60%. The hospitality unicorn which had laid off thousands of employees in January and had readjusted its vision to focus on profitability, had to put scores of employees on furloughs in India and US, while letting go of hundreds in China.
But as in India, its problems in China go beyond coronavirus, it has been subject to rising complaints from hoteliers about delayed payments.
$8 billion and counting – Asia's richest man is reportedly in talks to raise more money for Reliance Jio
AdvertisementByju Raveendran – one of India’s youngest billionaires may only get richer even during the coronavirus lockdown
- Apophis, the ‘God of Chaos’ asteroid is speeding up — increasing the likelihood of it hitting Earth in 2068
- Sputnik V: RDIF seeks vaccine's speedy registration, prequalification from WHO
- Ankhi Das quits as Facebook's India public policy head
- States urged to adopt national approach: Niti Aayog on 'free vaccine'
- Analysts expect no surprises from Axis Bank in the second quarter — loan growth and collections to be slow