Chinese luxury hotel profits have plunged since the start of Beijing’s harsh anti-corruption campaign reports The Paper.
According to the report, luxury hotels earned more than five billion yuan in profits in 2012, but their profits took a nosedive in 2013 when the government started to crack down on public spending.
The country has 13,500 hotels, which include 850 five star hotels. Profits for the sector went into the red with the luxury hotel sector losing 2.1 billion yuan.
The head of China’s Hotel Association said hotels that relied on high-end government business suffered the most and that profits for the whole sector had fallen off a cliff.
Chinese hotels have asked to be downgraded in order to avoid further unwanted media attention.
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Luxury hotel sector loses 2.1 billion yuan since the start of Beijing’s anti-corruption campaign.
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