Date
20 July 2018

New Century Hotel catering segment hurt by frugality drive

New Century Hotel Group, parent of New Century Real Estate Investment Trust (01275.HK), said the ratio of catering income from customers in the government sector to the group’s revenue dropped to about 2 to 3 percent this year from 15 percent last year due to Beijing’s anti-extravagance measures, chairman Chen Miaolin {陳妙林} said.

Chen said the central government should cut public spending by senior officials instead of simply sending them out to discourage local cadres from going into expensive restaurants.

He said some local officials might have their own luxury restaurants on their premises in order to bypass the restrictions. 

In November last year, Xi Jinping {習近平}, general secretary of the Communist Party of China, announced an eight-point plan to promote frugality in the government and across the party leadership.

New Century, China’s largest private high-star hotel group, operates more than 140 hotels in the country.

Chen, 61, on Wednesday completed a 28-day bicycle journey from Changchun in northeastern China to Hong Kong to mark the company’s 25-year anniversary. During the 5,000 kilometer journey, he visited 20 of the company’s hotels and ordered them to change their menus to cater to mid-end customers.

– Contact HKEJ at [email protected]

JP/RA

 

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