Seven hotels in Shanghai, and Hong Kong likely to delay scheduled opening dates
06/02/2020|1:56:52 PM|SCMP

At least seven hotels in Shanghai and Hong Kong are expected to delay their scheduled opening dates this year due to the collapse in tourism amid the coronavirus pandemic. And the casualty list could grow even longer.

A new report by property consultancy Knight Frank said five Shanghai hotels are likely to delay opening, including the Westbund Hotel Shanghai, with 219 rooms, the Xuhui Binjiang, the J Hotel, with 258 rooms, and the Ritz-Carlton Hongqiao, with 282 rooms.

That’s on top of two hotels in Hong Kong that recently announced they will delay their openings: CK Asset Holdings has deferred the opening of its 840-room Hotel Alexandra in Fortress Hill to an unspecified date, while a consortium of Hong Kong’s biggest developers has pushed back the 206-room The Silveri Hong Kong MGallery in Tung Chung by at least six months.

The hotels in the two cities represent a combined 2,246 rooms.

Others are at risk, too. A total of 27 hotels are scheduled to open across Greater China in 2020, which would add 9,608 rooms.

“Some of the hotels will delay openings if they have scheduled to commence by the first half of the year, while others might do soft opening to test the market,” said Martin Wong, Greater China research and consultancy associate director at Knight Frank.

That is especially true in Hong Kong, he said. In addition to the virus, it faces a resurgence in social unrest after Beijing’s move to impose a national security law on the city. Seven hotels with 2,300 rooms are scheduled to open in the city this year.

Hotels in China, Hong Kong, and Taiwan “have been severely affected by Covid-19, with occupancy rates in China dropping to as low as 7 per cent in February,” the report said.

“For Hong Kong, the city has a challenging start to 2020 following the ongoing socio-political unrest and the decline in the hotel (revenue per available room) was extended into February 2020 and again in March 2020,” the report said.

Read original article