Traditional Culture Encyclopedia - Hotel accommodation - Being a hotel doesn't make money
Being a hotel doesn't make money
However, as life becomes more and more convenient, people are more willing to book more affordable hotels on their mobile phones, not just alternative hotels. Now, as long as you open the APP, you can search all the hotel information around you, so when people book hotels, they generally choose affordable hotels with higher ratings and lower prices than merchants. Therefore, the market share of traditional five-star hotels has been largely divided. At the same time, due to the market supply and demand, the number of hotels has far exceeded the market demand, that is to say, hotels that can make money are very limited. In cities, five-star hotels themselves need a lot of money to maintain their operations, so the situation of not paying compensation sometimes happens.
However, many five-star hotels use leverage in their construction. Under the influence of a wave of epidemic, their capital chain was broken and they could not repay the bank loan, so they had to sell the hotel. So a large number of five-star hotels have been sold. This is a situation that some capitalists did not foresee the collapse of the capital chain caused by market changes.
Moreover, because the income of most people in China has also been affected by the epidemic, many people's savings have been almost exhausted, so people prefer cheap and affordable express hotels when traveling, and we prefer simple and comfortable to five-star high-end. After all, the high price of five-star hotels is not affordable for everyone. This has also led to this phenomenon.
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