BTG Homeinns Hotels Group has opened its first PuYin Hotel in Shanghai and plans to cut the ribbon on many more of the upmarket establishments over the next five years.
BTG Homeinns plans to have 100 PuYin brand hotels after opening the latest one in the Lujiazui central business district of Shanghai yesterday. The Beijing-based budget hotel chain operator intends to shift into the mid- to high-end segment in the coming three to five years.
PuYin will open mainly in cities directly under the central government or provincial capitals and prioritize CBDs when choosing locations. Apart from Shanghai, PuYin already has around 10 hotels in Xi’an, Chengdu, Xiamen and other cities.
The coronavirus pandemic has hammered the hotel sector. It now faces massive challenges in the form of occupancy rates and cash flow, leading to a diminished return on investment, BTG Homeinns General Manager Sun Jian said.
“Low-priced hotels also have rising costs and their ROI will suffer if they cannot improve their profits, while higher-priced mid- and high-end hotels are better off, which generates higher ROI for their partners,” he said.
BTG Homeinns’ occupancy rate is picking up rapidly as domestic tourism revives and business travel rebounds, Sun said, adding that revenue per available room has been restored to between 75% and 80% of the level before the virus outbreak.
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