Hotel operators waive fees for Chinese hotel cancellations as virus fears grow (updated)

Langham Hospitality Investments

23/01/2020 11:39

* Lunar New Year usually key travel period
    * Coronavirus has killed 17 and infected 600 so far
    * Hotels offering free cancellations
    * IHG group shares down 2.2%, one of biggest FTSE 100 falls
    * Movie releases postponed, airlines on high alert
    * 

 (Adds Hyatt, Langham statements)
    By Brenda Goh and Zoey Zhang
    SHANGHAI, Jan 23 (Reuters) - InterContinental Hotels  IHG.L 
and Hyatt  H.N  will allow guests to change or cancel stays at
most Chinese hotels as a deadly coronavirus outbreak overshadows
Lunar New Year holiday plans. 
    The outbreak began in the central Chinese city of Wuhan and
has killed 17 and infected nearly 600 people so far. The holiday
takes place between Jan. 24-30. 
    IHG said on its official WeChat account on Thursday that it
will allow customers to change or cancel stays scheduled up to
Feb. 3 across mainland China, Hong Kong, Macau and Taiwan at no
additional cost. 
    The waiver of fees applies to bookings made directly, such
as through the company's mobile app or website, it added. It
advised customers who booked via third-party vendors to contact
those platforms directly. 
    IHG has 443 hotels in Greater China under different brands,
and has another 397 in the pipeline, according to its website https://www.ihgplc.com/en/about-us/our-global-presence.
 It operates four hotels in Wuhan. 
    The company has been investing in China, its fastest-growing
market and has revamped rooms at Holiday Inn to woo local
business travellers. 
    However, it has already warned of lower business bookings in
China and a downturn in tourism from the protests in Hong Kong.
Its shares were 2.2% lower at 4,888 pence at 1131 GMT, making
them one of the biggest losers on London's bluechip FTSE 100
index  .FTSE . 
    Separately, Chicago-headquartered Hyatt said guests who had
booked stays through its official channels and are canceling due
to the coronavirus flu or are Chinese guests outbound to its
Asia Pacific hotels, can cancel stays or change dates free of
charge.
    The policy applies to Hyatt's hotels in mainland China, Hong
Kong and Taiwan, but not the three in Sanya, its customer
service representatives said through its WeChat service. 
    "While all the Hyatt hotels in China remain in operation as
usual, we understand the concerns for traveling at the moment,"
the company said in a statement.   
    The company runs about 100 hotels in the Greater China
region according to its website https://www.hyatt.com/explore-hotels/?categories=0®ionGroup=5-Asia.
    Investment trust Langham  1270.HK  said that for all the
Langham and Cordis Mainland China Hotels in Shanghai, Beijing,
Guangzhou, Shenzhen, Haining, Ningbo, Xiamen, Hefei and Haikou,
a full refund will be given for cancellations related to the
coronavirus for stays up to and including Feb. 9. 
     Global airlines are also on high alert as the virus
spreads, bringing with it concerns of a sharp drop in travel
demand if it becomes a pandemic.  urn:newsml:reuters.com:*:nL4N29S0TY 
    The release of seven movies over the Lunar New Year has been
also postponed. The holiday is the high season for distributors
and cinemas attract huge crowds.  urn:newsml:reuters.com:*:nL4N29S2N1

 (Reporting by Zoey Zhang and Brenda Goh in Shanghai, Pushkala
Aripaka in Bengaluru and writing by Noor Zainab Hussain,
Additional reporting by Shanghai Newsroom; Editing by Clarence
Fernandez and Elaine Hardcastle)
 ((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters
Messaging: brenda.goh.thomsonreuters.com@reuters.net))