Best Western Hotels and Resorts plans to open just eight properties in three countries in Asia -- Thailand, Japan and Myanmar -- this year as the coronavirus crisis puts several projects on hold.
Berrivin: Thailand is resilient in crisis
Olivier Berrivin, managing director of international operations for Asia at BWH Hotel Group, told the Bangkok Post that during the ongoing outbreak, the group is offering a relief package to hoteliers that includes waiving half of monthly fees or property revenue management fees.
The board of directors and other top executives have voluntarily reduced their compensation by 50%.
Mr Berrivin said it's too early to make predictions about the global tourism outlook, as the economic and financial consequences will last much longer and be more serious than anticipated.
But he believes the crisis will pass and operators will emerge stronger, as they did after crises in the past.
"Thailand has experienced a large number of crises over time," he said, "including the Sars outbreak, tsunamis, flooding, bombings and political instability. Yet the country keeps bouncing back and continues to be resilient."
He said a second wave of infections could occur if the containment measures are released too quickly and people are careless about protecting themselves.
"We have seen neighbouring countries facing new infection peaks because of a lack of proper preparation, and we're learning from that," Mr Berrivin said.
The group has more than 4,700 properties globally, including the WorldHotels portfolio and hotels in the pipeline.
Last year, Best Western opened more than 250 properties worldwide and generated revenue of US$8 billion. In Asia alone, the group signed 23 new projects in 2019.
Mr Berrivin said portfolio diversification is a priority and the group wants to make sure all brands are represented in all markets with all segments covered.
Best Western delivered the best performance in the midscale segment, while the acquisition of WorldHotels last year provides an opportunity to offer the upscale and luxury segments.
Apart from the flagship Best Western brand, SureStay and the BW Collection series have attracted attention from both developers and ownership companies.
Mr Berrivin said Vietnam was the top producer in Asia last year, followed by the Philippines, which focused on smaller properties in the midscale segment, mostly located in secondary cities.
The Vietnam market showed strong demand for upscale and luxury properties at quality mixed-use projects. The development of condotels was also a factor in the strong upward trend.
Support from the Vietnamese government for investment related to tourist accommodation and leisure activities was one of the key drivers for robust growth in Vietnamese tourism, which reached a record 18 million international visitors in 2019.