How to treat the trend of single hotels after the epidemic?

Since the outbreak of COVID-19, the hotel industry has been inevitably affected by the epidemic, and it is particularly serious.

In the medium and long term, many hotels will inevitably lose revenue because of the decrease in passenger flow; At the same time, various expenditures continue to occur. Many hotels may face tight cash flow or even serious losses:

1. Decreased income:

Shortage of capital chain caused by reduced passenger flow in hotel industry

2. Rigid expenditure:

Rent, staff salaries and other expenses to maintain basic operations still have to be paid, which does not include the bank interest that some hotels need to pay.

Coping strategies:

Although the state and local governments have introduced or are ready to introduce various support measures to help various industries, including the hotel industry, tide over the difficulties. For example: rent-free, rent reduction concessions or suggestions; Deferred payment of social security fees for employees; Reduce and exempt relevant taxes and fees. However, it is not just the hotel industry that is affected this time. Therefore, these inclusive policies may be just a drop in the bucket for the hotel industry. Therefore, in the case that the hotel industry may need to face a long-term decline in income, enterprises in the hotel industry should also consider various possible countermeasures as soon as possible to tide over the difficulties. Specifically, it is nothing more than increasing revenue and reducing expenditure.

First, increase income

1. Actively use various national policies to obtain subsidies or financial support.

In response to the COVID-19 epidemic, the People's Bank of China and the Ministry of Finance, the Banking and Insurance Regulatory Commission of China, the Securities Regulatory Commission of China, the Foreign Exchange Bureau and other government departments and local governments issued various policy documents to help enterprises solve their difficulties. Including the enterprise's credit support policy, financing policy, government financing guarantee institutions at all levels to provide compensation to enterprises, tax relief policy, deferred or reduced payment of employer's social insurance and other enterprise basic expenditure policies.

Under the above policies, enterprises in the hotel industry can actively apply for various subsidies or financial support to help enterprises alleviate the financial pressure in difficult times.

2. Find partners for enterprise merger and reorganization or sell part of equity, increase capital and introduce investment.

For most enterprises in the hotel industry in the market, we can consider seeking partners to merge and reorganize enterprises during the epidemic period, and use the scale effect of merger, post transfer optimization, employee rotation and other strategies to reduce the rigid expenditure of enterprises. At the same time, enterprises in the hotel industry can also introduce investment by selling some shares and increasing capital, so as to achieve the effect of increasing income and reducing expenditure.

Two. cut down expenses

1. Reduce rigid expenditure

In the absence of very detailed laws and regulations on the epidemic situation, enterprises in the hotel industry can consider reducing rigid expenditures through consultation. For example, the hotel industry can consider negotiating with employees to pay wages at a lower standard within a certain period of time, and negotiating with the lessor of the leased property to reduce or delay the payment of rent (based on the preferential policies promulgated by the state and the principle of fairness, etc.). ), or negotiate with brands and platforms to reduce the initial fee and platform fee.

2. Reduce the loss of breach of contract according to law

Large-scale hotels can negotiate with large-scale tourism platforms to exchange future cooperation opportunities for tourism platforms and solve the problem of breach of hotel service contracts signed by passengers and hotels. For example, some travel platforms issue notices, and the platform will solve the cancellation of hotel orders under its platform, and the platform will bear part of the losses.

In addition, the hotel can consider taking the initiative to contact the guests who have already placed the order, provide order extension service, and try to retain some business.

3. Apply for reorganization or reconciliation in accordance with the bankruptcy law.

If the enterprises in the hotel industry are really greatly affected by the COVID-19 epidemic, resulting in insolvency and unable to solve their difficulties by introducing new investment in the short term, they can apply for bankruptcy according to law. In bankruptcy proceedings, enterprises can better reduce the debt burden under the guidance of the bankruptcy administrator appointed by the court, exchange time for space, and have time to recover after the epidemic.

During the COVID-19 epidemic, the hotel industry was greatly affected negatively. But there is always a way out behind the crisis. We suggest that the enterprises in the hotel industry plan to deal with the next difficulties as soon as possible, and strive to survive or even live better through increasing revenue and reducing expenditure.

In addition, when the hotel industry is in trouble, investment institutions with sufficient resources can consider mergers and acquisitions or financial investments in small and medium-sized hotels. This way is expected to achieve the purpose of investing in hotels at a lower cost. In fact, it can also help small and medium-sized hotels tide over the difficulties, solve the employment difficulties of some employees and increase government taxes. All parties can achieve win-win or win-win, and achieve a double harvest of economic and social effects.