"Although the hotel operated normally in March and April, due to the impact of the epidemic, the number of business travelers decreased, and the occupancy rate was greatly reduced." A Beijing hotel franchisee Mr. Xu told the Beijing News shell financial reporter that as a franchisee, facing operational and financial pressure, on the one hand, he hopes to get some financial assistance, on the other hand, he also feels confused and does not know what to do during this time.
Recently, affected by the epidemic, the operation and development of the hotel industry have been greatly impacted, and many franchisees are facing difficulties. It is understood that BTG Homeinns, Atour, Shangmei, Huazhu and other hotel groups are discussing solutions with franchisees and launching a series of bailout strategies. Industry experts believe that although the recovery of the industry requires the efforts of relevant government departments, industry associations and other parties, it is more necessary for the brand side and the owner to work together to give full play to the company's own advantages and analyze and sort out the needs of users, so that it is possible to take the lead in the recovery.
Management fees are reduced or waived, store opening incentives are waived, and hotel companies have launched financial support policies
Recently, the Beijing News Shell Financial Reporter learned from BTG Homeinns, Atour, Shangmei, Wanda Hotels & Resorts, Huazhu and other hotel groups that in order to reduce the operating burden of franchised hotels and reduce the impact of the epidemic on hotels, a variety of support policies have been introduced, including management fee reductions, franchise preferences, traffic support, financial and insurance support, and store opening incentives. For example, BTG Homeinns, Atour and Huazhu all said that during the epidemic period, the management fees of franchised hotels in medium- and high-risk areas and stores requisitioned by the government were deferred or waived. According to BTG Homeinns, franchised hotels that have purchased "business interruption insurance", some hotels have suspended business for various reasons during the epidemic period, and the group and cooperative insurance brokerage companies have confirmed that when guests, employees or other third people in the hotel are confirmed to be confirmed patients, so they are required by the government to close the hotel, they can start the policy claim procedure.
BTG HomeInfoss provides accommodation for those who are guaranteed.
It is understood that in terms of financial and insurance support policies and store opening incentives, various enterprises have introduced relevant policies. According to BTG Homeinns, it recently launched financial and insurance support policies to franchised hotels to help owners reduce financial pressure, including the re-launch of franchisee special financing service programs to help franchisees quickly obtain operational loan support during the epidemic. The relevant person in charge of Shangmei Life Group told the Beijing News Shell Financial Reporter that a number of operating stores will be selected to give rapid upgrade support in many aspects, including providing subsidies for opening stores in April, with a single store up to 500,000. For hotels in medium- and high-risk areas at this stage, the Group will give comprehensive traffic support to stores from the aspects of direct sales channel member support and distribution channel traffic investment, and launch professional marketing services, free store diagnosis and other programs. Atour Group said that within the specified date, the purchase of materials in the camp hotel can enjoy a credit line of up to 100,000 yuan, after evaluation and review, the new owner can get up to 200,000 yuan of credit support for 3 months for signing the project and operating material procurement, and the new store that signs the contract and opens in 2022 will be given an opening incentive of 40,000 yuan. The Beijing News Shell Financial Reporter learned from Wanda Meihua Hotel that it is actively applying for rent reduction, extension of lease period or postponement of rent payment for hotels located in Shanghai, Nanjing, Wuxi, Nanchang and other places in accordance with relevant laws and regulations to alleviate the pressure on property rent.
In addition, Huazhu has also issued a series of bailout policies, including the issuance of rent reduction proposals, the introduction of management fee deferral collection, one-time franchise fee deferral and other policies, and the launch of a "special financing support plan". Among them, the "special financing support plan" is mainly for stores affected by the epidemic, supplementing short-term liquidity for franchisees, with a maximum amount of 500,000 yuan, a maximum of 6 months, an annual rate of as low as 4%, and no need to return the financing funds in the first two months. In addition, Huazhu has also built a green channel, and franchisees can lend within one week as soon as one week after submitting complete information. It is understood that since the launch of a week, more than 200 stores have received applications and consultations.
Atour has launched a number of bailout policies for franchisees, while each store actively assumes social responsibility.
Not long ago, the Ministry of Culture and Tourism issued the "Notice on Promoting the Implementation of the Bailout Support Policy for the Recovery and Development of the Tourism Industry", starting from 10 aspects such as tax reduction and fee reduction, inclusive finance, and undertaking activities, and implementing the "Several Policies on Promoting the Recovery and Development of Difficult Industries in the Service Industry" jointly issued by the National Development and Reform Commission, the Ministry of Culture and Tourism and other 14 departments. Zhao Huanyan, chief knowledge officer and senior economist of Huamei Consulting Agency, said that in the case of repeated epidemics, the hotel industry has been seriously affected, and the indicators of various aspects such as the operation of hotels in many places in the past two months have declined to varying degrees. However, he believes that after the epidemic, the first beneficiaries of rebound consumption will also be business travel, leisure and accommodation industries. "Hotel companies should provide financial and insurance support policies to franchisees, do their best to help owners reduce financial pressure, and take proper care of owners with business difficulties." In addition, Zhao Huanyan also stressed that under the current situation, hotels participating in epidemic prevention and control can not only ensure cash flow, but also contribute to society.
Thousands of hotels have assumed the role of "anti-epidemic hotels"
A staff member of wanda mehwa hotel in Qingpu District, Shanghai told the Beijing News Shell financial reporter that as a staff member of the isolation hotel, "usually not only to complete the distribution of materials, the production and distribution of three meals a day, floor killing, garbage removal and other work, but also to solve the needs of isolated guests at the first time." "According to him, before the arrival of the quarantined personnel, the hotel will assist the epidemic prevention personnel to comprehensively coordinate various preparations, start the transformation of facilities, material procurement, and clarify the types of labor and the number of personnel during the epidemic prevention task." We also carried out food delivery, meal withdrawal, killing, cleaning and channel route simulation exercises, and held regular work meetings to reflect on deficiencies and summarize experience. ”
As of April 15, 1,715 of Huazhu Group's full-brand hotels had been requisitioned as isolated hotels.
In addition to relieving stress for franchisees, hotel companies are also actively assuming social responsibility. The Beijing News Shell Financial Reporter learned that many hotel groups and their hotels have invested in the fight against the epidemic. According to statistics, as of April 15, 1715 stores in Huazhu Group's full-brand hotels have been requisitioned as quarantine hotels, and the Group has organized 28 special epidemic prevention teams nationwide, established a 4-level epidemic prevention system, and invested huge manpower and material resources to participate in epidemic prevention and control.
Wanda Meihua Hotel In Qingpu District, Shanghai assists the epidemic prevention personnel in preparing for various tasks.
"Meituan, Dingdong, Hema and JD.com, plus the supermarket sorting personnel who carry out group purchase business, these 5 types of insurance personnel need accommodation." According to the relevant person in charge of BTG Homeinns, more than 1,300 of its hotels have assumed the role of "anti-epidemic hotels", and at present, 90% of BTG Homeinns Shanghai stores have been requisitioned to become isolated hotels and government functional department staff to live in hotels. "We quickly joined hands with Meituan Takeaway and Meituan Hotels to provide more than 10 hotel stores to takeaway riders in Pudong, each hotel will provide at least 3 rooms for takeaway riders every day, if the room is full, the hotel will guide the riders to other hotels or Meituan Warm Bee Station for rest."
According to Atour, the operation departments and stores in the Shanghai area have also assumed more responsibilities in addition to the daily reception. For example, the staff of Atour Hotel Xujiahui Meiying in Shanghai actively coordinated to help critically ill guests with cancer seek medical treatment in a timely manner under the environment of tight medical transportation capacity. There are also franchise owners who take the initiative to assume more social responsibilities after their hotel meals and epidemic prevention services are guaranteed, and together with the store staff, they give free vegetable materials to the communities near the store, epidemic prevention volunteers and related epidemic prevention units.
At this stage, the hotel can be renovated, upgraded, transformed, and then re-launched when the inflection point of the epidemic is confirmed
Mr. Xu said that his store has been operating for 6 years, and originally planned to renovate and upgrade into a high-end brand hotel, but in the current situation, on the one hand, the occupancy rate is not high, and the door is open to lose money; on the other hand, it does not dare to continue to invest, afraid of investing more and losing more.
In response to the confusion under the operational pressure of hotel owners, Zhao Huanyan suggested, "At this stage, hotels that are close to the planned renovation time and have the ability to renovate funds can be renovated in advance; hotel owners during the lease property period can close some floors to reduce cost expenses according to the occupancy rate; hotels with opening conditions need to do a good job of input-output calculation of opening on time and delayed opening, and choose favorable solutions." ”
Shangmei Life Group believes that the renovation and renovation of some hotels is conducive to increasing revenue during the peak season this year.
In the view of Ma Yingyao, founder and chairman of Shangmei, hotels that have been open for more than 5 years can quickly do small renovations and decorations, which is conducive to increasing revenue in the peak season this year; if the hotel property conditions permit, budget hotels can consider upgrading to mid-range hotels. According to reports, for its opened economy hotels, if you want to upgrade to a mid-range brand, the renovation cost will be provided by Shangmei united financial institutions, providing up to one million yuan of credit, and Shangmei Life Group will bear the interest.
Wang Yan, brand director of Wanda Hotels & Resorts, believes that the domestic high-end hotel market has great potential, "on the one hand, the government has introduced tax reduction and exemption and moderate increase in loans and other support policies, on the other hand, during the epidemic period, property rents fell back to a relatively normal level in the market, hotel investors can obtain properties at more reasonable prices, and in the early stage of investment market investigation and calculation are more cautious and rational." "She stressed that mature brands can strengthen the confidence of investors." After the epidemic is effectively controlled, we believe that the long-suppressed consumer demand of consumers will contribute to the leisure and vacation market, especially in the market of outings. ”
Zhao Huanyan suggested, "Brands operating lightly can choose the location, develop cautiously to a limited extent, be prepared, and make further efforts when the inflection point of the epidemic is confirmed; some conference hotels and business hotels can consider transformation, and the current business opportunities for counter-development include peripheral tours, self-driving tours, and the development of campsites, homestays, and resort hotels in popular areas." In addition, he also reminded that according to the competitive "main battlefield" from the incremental market to the stock market, oversupply, from the development of hotels to the development of hotel brands, "the hotel industry can improve competitiveness by creating unique segmentation advantages, improving the level of experience, using cross-border cooperation with consumer terminals in guest rooms, and using technological progress to save energy and reduce consumption, and reduce costs." ”
Beijing News shell financial reporter Qu Xiaoyi
Edited by Li Zheng
Proofreading Liu Baoqing
Photo courtesy of interviewees