Upscale hospitality group New Century projects 80%-90% less profit
02/03/2021|6:03:23 AM|ChinaTravelNews

Zhejiang-based upscale hospitality group New Century Hotel projected that the company's net profit for 2020 will drop by 80%-90% from 2019. 

The company atributed the sharp decline in net profit to the huge impact on the hotel industry caused by the COVID-19 pandemic. Hotel occupancy rate declined, and revenue in the first half of 2020 significantly decreased, resulting in a net loss for the first half of the year. 

In the second half of 2020, the domestic hotel industry gradually recovered, and New Century Hotel's occupancy rate and RevPAR were significantly improved as compared to those for the first half of the year. 

The company sticked to its aggressive development strategy, continued to carry out internal organization and system innovation, and strengthens operation management, which saw "remarkable improvement" in project development, network layout, marketing and other aspects. New Century Hotel also increased strategic investment, and hence recorded net profit for the second half of the year, turning the tide against the trend.

The company announced on January 20 that it has received a voluntary privatization offer from an affiliated company of Sequoia China and Ocean Link. The offeror proposed to pay HK$ 1.51 billion in the deal that valued New Century Hotel at HK$ 5.2 billion (USD 670 million).