Coronavirus catastrophe in China, Hyatt witnesses 90% business fall

Amidst coronavirus catastrophe in China, Hyatt witnesses 90% business fall

coronavirus catastrophe in China

The threat of coronavirus can be observed on the steeply slowing down of the second-largest economy of the world –China. The fear of the deadly virus has impacted the hospitality industry across China. One of the leading hospital chains in the world –Hyatt which recorded strong growth last year witnessed a 90% fall in business recently.

While speaking on coronavirus, CEO of Hyatt Hotel –Mark Hoplamazian said, “Extraordinary circumstances and demonstrating a profound commitment to care for their families, for our guests and our customers, for our hotel owners and for the communities in which our hotels operate that have been hard hit by the reduction in travel associated with COVID-19.”

With over 86 properties in mainland China, the hotel chain has been present in China since the 1970s. In response to coronavirus, Hyatt closed 26 of its properties across the nation. Recently, several coronavirus cases were traced back to a business meeting that happened at the Grand Hyatt in Singapore.

Chief Financial Officer –Joan Bottarini said, “There is no question there will be an impact to our results [from coronavirus], but it’s simply too early to reasonably quantify what the full-year impact to our business in 2020 might be.”

She also added that revenue per available room (RevPAR) has declined to 32% in the Asia Pacific region while 90% in China. She stated, “Where we are in the range depends on the nature and extent of the stabilization period and recovery, and we don’t presently believe that the current conditions will persist for an extended period of time.”

In 2019, the company expanded aggressively to enter 35 new markets by signing a record number of franchise agreements and have also opened up a number of new hotels.