A SHIFTING LANDSCAPE: The hotel, which has had only one profitable year since it opened, would close on Monday, as it faces increasing competition and high rent
Date: Mar 07, 2020
By: Crystal Hsu / Staff reporter
Landis Hospitality Group (麗緻餐旅集團) yesterday approved plans to close Landis Taichung Hotel (台中亞都麗緻飯店) next week, as the COVID-19 outbreak sharpens losses in an increasingly crowded market.
“As the virus outbreak is to persist for a while, the board decided it is better to shut down the Taichung property to rein in losses,” Landis Hospitality director of finance and accounting Kay Ku (古亦敏) told a news briefing at the Taipei Exchange Market.
The 13-year-old property is the first five-star hotel to exit the Taiwanese market as tourist arrivals fall and local travelers forgo gatherings over fear of the flu-like disease.
The outlet has accumulated NT$350 million (US$11.7 million) in losses as of the third quarter of last year, with slim chances of generating profit against growing competition and operation costs, the hotel and restaurant operator said. [FULL STORY]