The Chinese company that’s bounced back
While major brands like Marriott International and Hilton Worldwide International remain hobbled by a halt in travel amid a resurgence of infections in Europe and the U.S., Shanghai-based Huazhu Group’s business has bounced back to pre-pandemic levels. In the second quarter, Huazhu’s occupancy rate reached 69%, compared with Hilton’s 22% and Marriott’s 14%. “We won’t hesitate to take action if there are proper acquisition targets, as operators with global presences will face challenges in the next one or two years amid virus and geopolitical tensions,” said Huazhu Group President Jin Hui, in a Bloomberg interview. “With capital raised from the IPO, we are able to seek partnerships at any level.”
Whitbread to cut 6,000 jobs as demand slumps
The U.K.’s largest hospitality company, Whitbread PLC, which owns Premier Inn and Beefeater, has warned that 6,000 staff could lose their jobs.The company blamed the cuts on a slump in hotel guest numbers since lockdown. It comes as the government’s furlough plan, which still pays 27,000 Whitbread staff, ends next month. Whitbread said it expected demand to remain lower across the business well into 2021 and possibly even 2022.
Border uncertainty could cripple Queensland’s rebound
With estimates that border closures are costing Queensland US$17 million a day, Accor
Pacific, Australia’s largest hotel group, is calling for urgent action. Australians’ visits to Queensland annually contributes US$25 billion to the region’s economy. According to data from government agency Austrade, Queensland has around 30,000 hotel rooms and apartments across the state. Accor predicts that over 70% could sit unoccupied through the coming months if the border uncertainty continues, which could lead to business closures for the first six months of 2021.
The future of travel
Lonely Planet co-founder Tony Wheeler recently shared his thoughts in a video interview with Rajesh Chandy, academic director of the Wheeler Institute, on how the pandemic is impacting the travel sector, and considered some of the long-term implications. One insight? The changes we’re experiencing now will be with us forever.
Read more and watch the full interview
Socially distanced tunes
Holiday Inn has partnered with country music artist Walker Hayes to bring live music to several Holiday Inn hotels in the form of drive-in, socially distant performances. The “Holiday Inn to You” tour, a nod to a line in Hayes’ single “Trash My Heart,” kicks off September 26 and continues through the end of October. Each show is open only to fans who win free tickets through radio and online giveaways in each market.