Quote:
Originally Posted by retirebatam
After having invested so much in the hotel, nobody will ever guess that he will abandon his business empire. Very sad to have lost such a nice place on earth. According to source, the occupancy rate of the hotel has fallen to 20% before the corona virus. And after the virus has taken place, the business became worst
But I doubt the information is accurate as my last stay was in late January 2020 and I always have to wait till noon time for rooms to check in because reception told me all rooms taken up the previous day.
|
I agreed with you. I also dont believe Formosa hotel was as the news have said, no good.
I have been trying to book formosa hotel in the last min since last year Sept and they always have no room. The room that i got during CNY 2020, i booked them in person at their reception about 3 months in advance.
I did a draft calculation and a rough gauge would be, the occupancy rate from last year October to this year 2020 January on average should be no less than 70%. It is only during February 2020 due to the Corona virus thingy, the business should be about 20%.
Which is one of the reason why i said earlier that there is no better time for Jerry to "run-road".
Quote:
Originally Posted by retirebatam
News also reported that there are 3 options for the hotel management to consider:
1) Try to contact Jerry and persuade him to take over the hotel. So that the hotel continues to operate and employees can still work. It was known that this option cannot work as it was reported that Jerry had tried to borrow money from his taiwanese friend in Taiwan but was being rejected.
2) Propose to sell all existing hotel assets and the money to pay the employees salary based on years of service.
3) Since Jerry has already establish a standard system of hotel operation, in fact the employee can follow the SOP to continue to run the hotel. Just need a company or individual who is willing to take over the business, everything can still run as per normal.
I was told by the Formosa staff that Jerry has appointed a local indonesian chinese from kalimantan to help him manage the business operation in Formosa hotel which means that he is the 2nd man incharge. So if this person manage to find a investor to take over the business, with his experience can help run the hotel business.
Alternatively if another hotel willing to take over the operation, Formosa can still operate..
|
I hope they can take option 3 but looking at the tourism business in Batam now, i highly doubt it could reap any profit at all.
Lots of hotel i knew in Batam were retrenching staffs. Yes, they dont take the pay-cut option becos the staff's salary were already not high. One particular hotel i knew took out 1/3 of its 100 over staffs.
Like what bro Lingo have mention, the day Batam stop the ferry between Batam and Singapore,it would marks the end of Batam (almost). Many shops will cut staffs or close down and many will have to go back earlier for Ramadan (April 2020) this year.
Mainly shop/property owners w/o loans with bank will survive.
