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Five-star hotels in Beijing downgrading in response to anti-corruption crackdown

10/12/2014| 3:47:36 PM| 中文

Gloomy market conditions and the Chinese government crackdown on corruption has caused both a drop in prices for luxury hotels and the relinquishing of the hotel’s “Five-Star” rating to comply with state regulations for conference venues.

According to Hong Kong media, the average room price at five-star hotels in Beijing has dropped 7% from January to July this year compared to the same period last year. Gloomy market conditions and the Chinese government crackdown on corruption has caused both a drop in prices for luxury hotels and the relinquishing of the hotel’s “Five-Star” rating to comply with state regulations for conference venues.

The Hong Kong Daily News reports that earlier this year the Beijing Municipal Government issued an order banning all five-star hotels from hosting government meetings. At the China Tourist Hotels Association’s annual star rating Beijing JInjiang Fuyuan Hotel relinquished its right to receive the five-star rating. With the central government’s policies to restrict the “Three Public Expenses” (Chinese government officials’ fully-covered expenses for overseas travel, receptions and meetings, and official cars) the prestige of five-star have become more of a hindrance than a help to hotels.

In the past government meetings were regularly held at Beijing Capital Tourism (BCT) Group’s Beijing International Hotel on Beijing’s Changan Avenue but since the new ban on five-star hotels as venues for government meetings the reception capacity of their attached conference center has been drastically reduced.

 BCT has also been forced to change is shareholdings by reorganizing its assets under the four-star Jianguo Hotel. Jiangguo Hotel’s international conference center will be able to continue to hosting government conferences without the restriction placed on five-star hotels.(Translation by David)

TAGS: Beijing | five-star hotel | anti-corruption
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