Covid hotels stay in biz on thin margins

In order to address the scarcity of beds, hospitality chains have tied up with hospitals to provide accommodation with care for Covid patients. While this has improved the occupancies, the revenues are significantly lower.

Since mid-April, several hospitality chains, including Taj Hotels, Ginger, ITC, Crowne Plaza, Radisson, Sarovar, Welcomhotel and Oyo, have opened their properties for Covid patients with mild symptoms as well those seeking isolation.

"At present, we have over 80 active quarantine and isolation facilities. Additionally, we have mapped and ensured readiness across 750 properties, which can be turned into quarantine centres across the country, in need arises or increases," said

Kapoor, CEO, Oyo and South-East Asia.

"For mildly affected employees, we have isolation facilities with healthcare service providers. This includes 24*7 nurse care, on-demand pathology and pharmacy support, daily doctor visits, meals, among other services," he said.

According to Pradeep Shetty, honorary secretary case the demand Rohit India of the Federation of Hotel & Restaurant Associations of India, more than 100 properties should be offering accommodation to Covid patients across key cities. "The occupancies should have been otherwise nil in these hotels due to the lockdown and Covid fears. Now the properties would be having around 30 per cent occupancies," he said.

However, the revenues are significantly low for the rooms. Some of the state governments have capped the room rates for these facilities. As per the directive of the Delhi government, five star properties should not charge more than Rs 5,000 per patient per day and Rs 4,000 for four and three star properties.

"The average revenues per room would be around 50 per cent of the usual tariffs. Further, there could be some revenue sharing with the hospital partner," said Shetty.

According to Jaison Chacko, secretary general, FHRAI, there is also reluctance from the part of the staff. "We have been requesting the government to categorise hotel staff as frontline workers and provide them vaccination. Most of the hotel employees are not vaccinated and this puts their lives at risk," he said.