As the hospitality industry continues to reel from the impact of the novel coronavirus disease pandemic, more hotels may face closures or the sale of their properties if they are unable to repurpose, a real estate services firm said.
Santos Knight Frank research and consultancy head Jan Custodio said, “With no clients coming in because of the lockdowns and travel restrictions, we might see more hotels probably closing if they are unable to repurpose.”
Custodio said it is difficult to operate a hotel with occupancies declining to as low as 10 percent.
He added, “Normally, hotels operate at 50 to 60 percent, the bigger hotels are doing 75 to 80 percent occupancy year round. So the significant drop will definitely result in serious revenue losses.”
Apart from temporarily halting operations, SKF director for investment and capital markets Kash Salvador said some hotels are also expected to put up their properties for sale.