Eight out of 10 Asia-Pacific hotels had to close at peak of coronavirus pandemic, Colliers estimates
- The closures are likely to lead to losses of at least US$50 billion in first-half revenues for the segment, the property consultancy says
- About 2 per cent to 3 per cent of hotels in the region would have permanently shut their doors to guests, Colliers estimated
That is likely to lead to losses of at least US$50 billion in first-half revenues for the segment.
“The number of hotels that temporarily closed down varies across markets, but eight out of 10 hotels would have been closed at the peak of the pandemic especially in hard-hit markets such as Wuhan and Singapore, with only those home to quarantine guests and essential workers remaining open, albeit they were not allowed to accept other guests,” said Govinda Singh, executive director, hotels, Colliers International.
About 2 per cent to 3 per cent of hotels in the region would have permanently shut their doors to guests, he estimated.
“We will know more in the fourth quarter,” said Singh. “No doubt the first casualties will be those hotels that were struggling during the peak.”
Hospitality has been the hardest-hit industry as travel bans, lockdowns and border closures across the world designed to stem the spread of the deadly coronavirus led to room occupancy declining to less than half, and revenue per available room dropping by 40 per cent in the first three months of the year, according to Colliers’ Hotel Insights.