Hotels鈥 star rating dips or delayed
Print Edition
MORE than 50 star-rated hotels in China have pledged to “downgrade” while some new hotels have delayed filing applications for a star rating amid a decline in business following the Party’s campaign against extravagance, Xinhua news agency has reported.
The more than 4,000 star-rated hotels on the Chinese mainland, of which 680 are 5-star properties, may have suffered a 25 percent annual drop in operation revenue last year from 2012, said Chen Miaolin, chairman of New Century Tourism Group.
The group, which owns 64 hotels nationwide with two-thirds being 5-star hotels, has seen operation revenue at its properties fall an average 18 percent, with the catering business losing 20 percent last year, said Chen, who is also the vice president of the China Tourism Association.
Across the country, about 56 5-star hotels pledged to downgrade to 4-star properties last year, Chen said. A significant number of newly-built hotels delayed their filings for a 5-star rating for their properties, he added.
In November 2012, the Party launched a nationwide campaign to cut extravagance which forced several local governments to stop holding lavish consumption in 5-star hotels.
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