Hotels feeling the brunt of the virus impact. Drop in occupancy, revenue

April, 29, 2020

The economic impact of COVID-19 across different industries is staggering and the hotel industry is no different. Major hotel chains are seeing occupancy rates tumble as travelers stay at home during the coronavirus outbreak.

In a disclosure to CSE, Jetwing Lighthouse Hotel, a franchise hotel belonging to Jetwing Hotels announced that that the impact of COVID-19 pandemic on their business is “unprecedented.”

“Almost all operational revenue streams are ceased and any indication of when we may resume operations are highly contingent on a number of local as well as international developments with regard to the battle against the pandemic,” Jetwing Lighthouse Hotels Chairman Hiran Cooray said.

He further stressed that currently, all hotels are operating with zero occupancy except Hotel J – Unawatuna with minimum occupancy.

“In the short-term, it is difficult to predict the impact of COVID-19 as there remains many unknowns. In the medium to long term, we are taking a much more optimistic view,” he stressed and added that with Jetwing’s sharp focus on the Industry, the long years of experience in many facets of it, and the eclectic team of experienced associates, he believes that they are well positioned to adapt and innovate for the next normal when this hibernation ends.

Shantha Kurumbalapitiya Managing Director at Serendib Hotels Plc also noted that the pandemic has brought about an unprecedented impact  for their business as it has in the global travel and tourism industry.

“With international and local travel restrictions issued, the hotels saw a zero to minimum occupancy resulting in the decision to temporarily close the properties,” Kurumbalapitiya  said.

“Moreover, the escalating situation of COVID-19 in the European region has a direct impact as most of our source markets are from the European Union,” he stressed.

"Avani Bentota Resort & Spa, Club Hotel Dolphin Waikkal, Hotel Sigiriya, and Lantern Beach Collection Mirissa which are owned and managed by Serendib Hotels PLC had remained temporary closed since 28th March 2020.

However, Kurumbalapitiya believes that the closure of the properties will continue until global travel normalizes.

Moreover, Leading blue-chip conglomerate Aitken Spence PLC noted that due the COVID-19 pandemic crisis, the group’s inbound travel segment, which has been responsible for bringing in the largest share of tourists to the country over several years, has been compelled to temporarily cease operations.

The group’s hotels in Sri Lanka, the Maldives and Oman, had remain temporarily closed while very limited operations are taking place in the hotel in India, he stressed.

 

 

 

 

 

 

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