Hidden Covid Recovery Laggard? Also MCO in Malaysia Lifted.

 

The Group&rsquo s hospitality business continues to be affected by the various travel restrictions in the region and lockdowns within many countries. Some of the hotels managed by the Group remain closed while those open are operating at reduced revenue levels, either due to low occupancy or average daily rate, or a combination of both. This resulted in lower fees for Travelodge Asia as the hotel manager considering the hotel management fees are calculated as a percentage of the hotels&rsquo revenue and profit. The hotels currently in operation have continued to put in place a series of cost saving measures, including closing of rooms and facilities, shortened work hours or reduced headcounts, renegotiated vendor and supplier contracts, and tapping on government subsidies related to payroll and business operations, to mitigate the impact of COVID-19. Travelodge City Centre has been designated as a quarantine centre for travellers returning to Malaysia from abroad who are required to undergo mandatory quarantine. As such, the hotel has been able to generate revenue from this source while continuing to manage its costs tightly. The Group continues to focus on the safety and well-being of its customers, employees and the communities it operates in by upholding stringent safe distancing and safety measures at all the Group&rsquo s properties.

 

International travel will likely not resume to pre COVID-19 levels in the short term as vaccination programmes may take time to roll out fully and successfully. There is, however, a possibility of domestic travel in the short term in some markets which the Group operates in, on condition that these countries are able to contain the spread of the virus in a sustained manner.

 

The Group is positioning itself for an economic recovery in the medium term with the continued deployment of vaccines worldwide and resumption of consumers&rsquo confidence to travel. In light of this, the Group will continue to pursue growth opportunities in key markets where it already has a presence in, namely Singapore, South Korea, Hong Kong, Malaysia, Thailand and Indonesia, while also looking to expand into new markets such as Japan.

 

https://www.straitstimes.com/asia/se-asia/malaysia-lifts-mco-for-kl-selangor-johor-and-penang