It will operate under its own brand.

Recently, there are market rumors that due to the serious losses of Shanghai Hongqiao Indigo Hotel, its owner Fang Longhu Group sent a letter of termination to Liuzhou Hotel Management Company, a subsidiary of Intercontinental Hotels Group, requesting to negotiate the closure of the hotel as soon as possible, and plans to stop the operation of Hongqiao Indigo Hotel from August 10. Shanghai Hongqiao Indigo Hotel is a part of Longhu Tianjie Complex, the landmark of Hongqiao Business District. Longhu is a self-sustaining property, located in the core area of Hongqiao Business District, with 227 rooms. According to market information, Shanghai Hongqiao Indigo Hotel has been in a state of serious losses in every actual operating year since it opened in September, 20 18, with accumulated losses and profits exceeding 50 million yuan. The gross profit over the years has not reached the annual budget target confirmed by the hotel and the owner. In response to this news, Longhu told CBN that it was true to cancel the contract with Liuzhou Hotel Management Company on the Hongqiao Hotel project, but did not disclose more details of the cancellation. The reporter was informed that the hotel will not be closed. After the termination of the contract, Longhu will update and upgrade the brand and format of the hotel, from entrusted management to independent operation. "Due to the epidemic, the Hongqiao hotel industry, which takes business travelers as customers, has been greatly affected. However, with the acceleration of Shanghai's economic recovery and revitalization, more and more enterprises and business people have returned to Shanghai. Longhu hopes to operate the hotel with a more flexible strategy, so it is very likely to choose to operate independently and provide supporting services for entrepreneurs, executives and other business people who come to Shanghai, so that the cost is more controllable. " According to an insider close to Longhu, it is expected that the hotel will re-enter the market by the end of the third quarter of this year at the earliest. According to the enterprise survey, Liuzhou Hotel Management Company, the partner, was established in 2004 with a registered capital of130,000 US dollars, and is wholly owned by foreign investors. Hotel brand "Indigo" is a high-end boutique line under the Intercontinental Group, which was founded in 2004 and entered the Chinese mainland market on 20/0/0. Intercontinental Hotels Group (IHG) is the largest hotel management company in the world, with the largest number of hotel brands in the world. After the global outbreak of COVID-19 in 2020, the performance of IHG was greatly affected. According to its public financial report, in 20 19, IHG's total revenue was 4.627 billion dollars and its profit was 385 million dollars. However, in 2020, its total revenue almost halved to $2.394 billion, its net profit decreased by 167%, and its loss was $260 million. In 20021year, the total income increased slightly, reaching $2.907 billion, but there was still a big gap compared with before the epidemic. At the end of July, InterContinental Hotels Group disclosed that the saleable income per room in Greater China in the first ten days of July recovered to the level of 20 19, which was above 80%, but only recovered to the level of 60%-70% in East China and North China. Some hotel industry observers told CBN: "Fang Longhu, the owner, may no longer be optimistic about this single-store operation mode in the past. After all, the market environment has changed a lot. " As the core transportation hub of the Yangtze River Delta, Dahongqiao has always had a great demand for tourists' accommodation, but under the constant intrusion of the epidemic, this demand has obviously decreased in a short time. On the other hand, the accommodation needs of business people still have a lot of room for development, which is accelerating the recovery. According to the data disclosed by the Management Committee of Hongqiao International Central Business District, in 20021year, Hongqiao Business District introduced more than 400 headquarters enterprises, and gradually became a gathering place for headquarters enterprises at home and abroad, with the number of resident enterprise managers and business travelers increasing. Longhu said that it will grasp the market sensitively and pay attention to the change of brand and service in response to the influx of business people.