IHG remains optimistic despite $524m drop in revenue

InterContinental Hotels Group (IHG) has posted its financial results up to June 30, 2020, giving an insight into how COVID-19 has hit business.

IHG recorded a severe revenue crash in the first half of the year, falling by 52 percent, the group brought in just US$488 million in the first six months of the year. 

Operating Profit for the same period last year was $410 million, equating to an 82 percent drop.

For More Information Please Click Below:

hoteliermiddleeast.com/business/119001-ihg-remains-optimistic-despite-524m-drop-in-revenue

Food data Intelligence Software NutriCal launches in the UAE

NutriCal, a Food Data Intelligence Software, has launched in the region with the aim to equip businesses with the information they can use to attract and retain customers.

NutriCal can be integrated by restaurants, cloud kitchens, food delivery companies, aggregators, food manufacturers, and brands. 

The system has data and intelligence of over 25,000 ingredients from the United States Department of Agriculture (USDA) and other international databases

For More Information Click Below :

www.hotelnewsme.com/news/food-data-intelligence-software-nutrical-launches-in-the-uae/

Kolkata restaurants to reopen from June 8 with new innovative measures to ensure social distancing

Key Take Away

The nationwide lockdown has led to various restrictions being lifted in many parts of the country, restaurants in Kolkata are also set to function from June 08 .In this regard, they have come up with various innovative measures to ensure social distancing as well as smooth functioning .

There are quite a few interesting measures which include: glass partitions between tables, an option to place an order on phone from the table, virtual instruction cards to inform guests about the new guidelines, a marked waiting area for those queuing up at the entrance door.

For More Information Click Below :

www.timesnownews.com/kolkata/article/kolkata-restaurants-to-reopen-from-june-8-with-new-innovative-measures-to-ensure-social-distancing/602755

India Daily Hotel Occupancy Drops to 11%

As COVID-19 concerns and restrictions have intensified in India, the country’s daily hotel occupancy dropped to 11% during 23-29 March, according to preliminary data from STR.

. “The story was different in March, especially during the later portion of the month with year-over-year occupancy declines in excess of 80% for the last nine days we have processed

Along with a steep downward trend in occupancy, average daily rate (ADR) and revenue per available room (RevPAR) have also dropped significantly in India. ADR, which has decreased year over year by roughly 20% or more for eight consecutive days, went as low as INR4,924.18 on 28 March. RevPAR reached its lowest absolute level (INR537.54) on 22 March.

For more information click on below mention link :

https://str.com/data-insights-blog/coronavirus-hotel-industry-data-news

U.S. Hotel Industry Reports 22.6 Percent Occupancy for Week Ending March 28th - 2020

Reflecting the continued impact of the COVID-19 pandemic, the U.S. hotel industry reported significant year-over-year declines in the three key performance metrics during the week of 22-28 March 2020, according to data from STR. 

In comparison with the week of 24-30 March 2019, the industry recorded the following:

• Occupancy: -67.5% to 22.6%

• Average daily rate (ADR): -39.4% to US$79.92

• Revenue per available room (RevPAR): -80.3% to US$18.0500

  Aggregate data for the Top 25 Markets showed steeper declines across the metrics: occupancy (-74.5% to 19.6%), ADR (-43.9% to US$89.71) and RevPAR (-85.7% to US$17.60).  

  New Orleans, Louisiana, recorded the steepest decline in RevPAR (-92.8% to US$10.27), due primarily to the second-largest decreases in occupancy (-84.9% to 12.7%) and ADR (-52.3% to US$80.74).

  Oahu Island, Hawaii, experienced the steepest drop in occupancy (-86.4% to 10.5%).

  Miami/Hialeah, Florida, posted the largest decline in ADR (-57.9% to US$116.64). 

  Of note, occupancy in New York, New York, was down 81.8% to 15.2%. In Seattle, Washington, occupancy dropped 76.6% to 18.5%.

Oyo sees signs of recovery in China after coronavirus outbreak

 Oyo Hotels and Homes has started to see a recovery in bookings in China, its second-largest market, as the coronavirus outbreak eases up in some parts of the country, the Indian hospitality startup’s Chief Executive Ritesh Agarwal

 A rise in imported coronavirus cases and the lifting of restrictions on movement in some cities in China have raised the prospect of a second wave of infections that could thwart the country’s economic recovery

Oyo, which is backed by Japan’s SoftBank Group Corp , has cut thousands of jobs this year, including in China, as the company focuses on becoming profitable and grapples with the coronavirus outbreak.

Oyo would offer free accommodation at its roughly 300 U.S. hotels to doctors, nurses and other medical first responders who are helping to tackle the coronavirus outbreak.

Corona crisis: OYO offers free stay to doctors & nurses in US; Ivanka Trump, Paytm boss bowled over by gesture

 Ivanka Trump, the senior advisor to President Donald Trump, has lauded an initiative by Ritesh Agarwal-founded Indian start-up OYO Hotels to offer free stays to doctors, nurses in the US helping in the fight against the novel coronavirus, describing the gesture as "impactful acts of benevolence".

The OYO press release said that beginning March 24, medical first responders will receive free accommodations at any OYO Hotel in the United States so they can sleep, shower or just get off their feet and recharge.

The medical personnel can call a designated number to get their reservation for the nearest OYO and with a valid active First Responder identification, OYO Hotels will cover all the costs.

DiamondRock Hospitality Company Provides Update And Announces Steps To Mitigate COVID-19 Impact

DiamondRock Hospitality Company (NYSE: DRH), a lodging-focused real estate investment trust that owns a portfolio of 31 premium hotels in the United States, provided an update today on the impact of COVID-19 on its operations and announced the proactive steps management is taking to mitigate the financial impact.

The Company is withdrawing the guidance it issued on February 20, 2020, due to the uncertainty surrounding the impact of the COVID-19 pandemic.  As of March 14, 2020, the Company's total revenues have been negatively impacted by approximately $23 million of cancelled group business, excluding potential cancellation fees. Other highlights:

• Nearly 85% of the group cancellations are concentrated in March (55%) and April (30%).

• At this time, less than 3% of group business cancellations extend beyond June 2020.

• Cancellation fees are expected to mitigate a portion of the expected losses.

• Geographically, nearly 41% of the group business cancellations are in Boston, 8.5% are in Chicago, 8.0% are in Fort Worth and less than 3% are in New York.

  In coordination with its hotel operators, the Company has developed actions plans to significantly reduce costs at each of its hotels:

  • The Company has suspended operations at hotel restaurants and outlets where demand is insufficient or local prohibitions do not permit social gatherings.

  • The Company is proactively "right-sizing" hotels to current demand levels in order to aggressively reduce costs and maximize efficiency.

  • The Company has cancelled or deferred the vast majority of its capital expenditures.

Hotels may see 20-40% fall in occupancy rates in Mar-May due to COVID-19

Hotels in India are staring at a steep 20 to 40 per cent fall in occupancy rates during the three months ending May as lockdowns due to COVID-19 (Coronavirus)

While the plunge in occupancy could be 30-40 per cent for mid-scale and two-star hotels, the same for four-star hotels and above categories could be 20-25 per cent for the next three months beginning March -- which is peak season due to summer holidays and weddings,citing the increasing number of cities going under full or partial lockdowns.

On revenue side, hotels under the four-star or above categories could see 65-70 per cent fall in revenue per available room, while for two-star hotels it could be 50-60 per cent.

During the global financial crisis, the average absolute occupancy rates fell by over 9 per cent, with the highest fall being 10.40 per cent for four-star and above hotels, followed by three-stars at 8.5 per cent.

Markets like Singapore, Indonesia and Hong Kong, where the outbreak began in January, have seen sharp decline in occupancy rates -- much higher than seen during the SARS outbreak in 2003 when it fell to sub-20 per cent from around 70 per cent in China.

COVID-19: Hospitality Industry Seeks PM's Help

The Federation of Associations in Indian Tourism and Hospitality (FAITH), the nodal agency and policy federation of all the national associations representing the tourism, travel and hospitality industry has written to Prime Minister Narendra Modi stating the tourism industry is in dire straits because of the COVID-19 pandemic

With declining revenues almost all tourism businesses are running out of working capital

In the letter, FAITH has requested for a complete GST tax holiday for the tourism, travel and hospitality industry for twelve months.

"With almost nil revenues there is hardly going to be any GST collection,"

FAITH said as a result of this pandemic, the Indian tourism industry is looking at pan India bankruptcies, closure of businesses and mass unemployment. "It is believed that around 70% out of a total estimated workforce of 5.5 crore (direct and indirect) could get unemployed (3.8 crore).This effect of job losses and layoffs has already begun throughout the country," the letter stated.
The federation has also requested for a twelve months' moratorium on EMIs of principle and interest payments on loans and working capital from financial institutions besides a doubling of working capital limits on interest free and collateral free terms."This will prevent all our tourism businesses from going bankrupt,"

FAITH has also sought a support fund for 12 months on the lines of MNREGA to support basic salaries with direct transfers to affected tourism employees.

Setting up of a national tourism task force under PM's leadership to fast track all tourism investment proposals and to withhold the tax collected at source (TCS) on travel provision proposed in Finance Bill 2020 which is to be introduced from April 1.FAITH believes TCS on travel will displace business from India to overseas markets

A deferment of twelve months for all statutory dues

Release of SEIS and EPCG schemes on an urgent basis based on last year's submissions of foreign exchange earnings of companies at an enhanced rate of 10%, GST refunds on MICE cancelled events, a six to nine months' moratorium on all working capital principle, interest payments on loans and overdrafts bringing in liquidity