For hotels like home-grown Ovolo Group, this new scheme means the brand must — along with many other popular hotels — cancel 8,000 room nights through March, which will be “devastating to Ovolo’s business." (Pictured: Ovolo Central)
The Hong Kong government’s attempt to quash the city’s fourth
Covid-19 wave has allegedly ruffled some hotel industry feathers, when
it announced on 11 December, the 36 exclusive hotels approved to accept
quarantine guests between 22 December and 19 February.
Travellers arriving from locations outside mainland China are subject
to a mandatory 14-day quarantine, and must have proof of a hotel
reservation before boarding flights. Additionally, in order to avoid
broader infection, selected hotels are prohibited from taking in regular
guests, and those not chosen must stop accepting quarantine bookings.
According to the SCMP, approximately 100 hotels applied for a place
in the Designated Hotel Scheme, but the Federation of Hong Kong Hotel
Owners’ Michael Li told local media that the industry had not been fully
briefed on the scheme’s requirements beyond size, location, price and
quarantine experience criteria.
“We primarily consider whether the design, facilities and operations
of the hotels meet the Government's infection control requirements,”
said a spokesperson for the Food and Health Bureau (FHB), admitting that
other factors were also considered, and that, “Designated quarantine
hotels must pass the inspection conducted by the Department of
Health…the Electrical and Mechanical Services Department, and the
Buildings Department.” The FHB declined to answer whether exclusion
equated with failure to meet the scheme’s standards.
Spanning nine of the city’s 18 districts, the more than 12,000
approved rooms range in price from a general entry at HK$400 (US$52), to
over HK$50,000 per night at the Landmark Mandarin Oriental.
Central, Wan Chai and Kowloon City districts are home to 21 of the 36
exclusively approved hotels, and although Secretary for the Civil
Service Patrick Nip has claimed only one property per hotel group would
be considered, Magnificent Hotel Investments, Far East Consortium and
Regal Group hold nearly 50% of the designated rooms. At a press briefing
Nip noted sufficient rooms at affordable prices were crucial, and that
80% of the selections charged under HK$1,000 per night.
Also raising eyebrows was the omission of operators with a proven
track record in quarantine stays, including Dorsett International
Hospitality Group’s budget-friendly Silka and home-grown Ovolo Group.
“Ovolo hotels have been embracing returnee Hong Kongers with dignity
and pride for over 10 months,” said founder and CEO, Girish
Jhunjhnuwala, referring to the hotel’s quarantine concierge package,
which has welcomed more than 1,500 quarantine guests over 21,000 room
nights this year. This includes those flying in from high-risk
destinations, USA and UK.
Ovolo’s Mojo Nomad in Aberdeen Harbour was approved but its Central
location was not, although the nearby Landmark Mandarin Oriental was.
Four Points by Sheraton Hong Kong Tung Chung Hotel made the cut, despite
being scheduled to open in spring 2021.
The quarantine package helped Ovolo maintain 78% occupancy through
December, and now with this scheme the brand must — along with many
other popular hotels — cancel 8,000 room nights through March, which
will be “devastating to Ovolo’s business.” Since the start of the
pandemic, hotel occupancy in the city has plummeted to just over 50%,
making quarantine stays a key revenue generator.
There’s been no word on compensation for hotels left out in the cold,
but with many of the locations already fully booked, more could be
added.
“So far, there are 36 hotels in the first batch of designated
quarantine hotels,” the government release stated. “[We] will closely
monitor the booking rate of the hotels and increase the supply of
designated quarantine hotels as and when necessary.”