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In contrast to its ski resorts, Switzerland is not as resilient in the hotel sector. The Covid-19 crisis put an end to tourism a year ago, to the great detriment of hotels which have emptied their guests and are now forced to close down.

Numbers can be a little scary

In contrast to other sectors, the Swiss hotel industry does not seem to be getting its head above water at the beginning of 2021. It is even continuing its decline, with a considerable number of closures in the country’s major cities.

The figures collapsed as soon as the health restrictions came into effect: during the summer season, the number of hotel overnight stays in Geneva fell by 78%, by 73% in the Zurich region and by 63% in the Basel region. 

Compared to 2019 in the same period, Geneva hotels lost a total of more than 130,000 overnight stays in November, a drop of 81%. In Lausanne, the number of overnight stays fell by 55,000, in Zurich by 200,000 and in Basel by 92,000.

“Before the pandemic, there was never a yield problem for the 122 hotels in Geneva, with an average annual occupancy rate of more than 65%, like Zurich. Currently, there are cash flow problems” stated Adrien Genier, director of the Geneva Tourism & Congress Foundation.

“The year 2021 looks like 2020, or even worse. Because at least there were the good months of January and February last year,” Thierry Lavalley, director of the five-star Fairmont in Geneva, told AWP. In January, the chain ran with a 5% occupancy rate and 10% of its 200 employees.

Jean-Jacques Gauer, President of the Association romande des hôteliers (ARH) also spoke to the AWP, “I am aware of several hotels in Geneva and Lausanne that are in default of payment, rather in the middle of the range. This is beginning and will no doubt continue, as there is no turnover. They are unable to meet their obligations. The canton helps with rent, but there is also heating, electricity, etc., to be paid”. 

A hecatomb of closures

This autumn, hotels such as the four-star Swissôtel Le Plaza, a brand of the French Accor group, as well as Swissôtel Zurich found themselves in suspension of payments.

The X-Tra, the Atrium Airport Hotel ( Geneva ) and the Atlantis Hotel also had to close. Guests and staff “were unable to do anything about the global challenges that the year 2020 has brought,” it says on the website.

At the same time, the Zurich hotel Ascot also had to close its doors, laying off 40 people. The continued operation of a 74-room establishment with 70% fewer guests was no longer possible, explained its manager in an interview with 20minuten.ch.

However, a few positive notes can be noted: The Meininger Hotels Group intends to open two establishments in Zurich and Geneva at the beginning of the summer. Calvin’s City, which already has 17 five-star hotels, will have one more this spring with the opening of The Woodward.

According to Adrien Genier, these establishments will “always benefit from a business, diplomatic, leisure, international and very diversified clientele”.

He went on to say that “there have been covers like the Beau Rivage by a family band or the Starling by Hilton, which is a big band that had to do its calculations. Investing in the hotel business is always interesting in the medium term, beyond real estate speculation” .

Also, some of these hotels have been filled by an unusual clientele: people in precarious situations due to the crisis. Indeed, thanks to the deserted hotels, these homeless people were able to be accommodated for the duration of a scheme set up by associations.

The State of Geneva is partly financing the scheme with a private foundation. Rooms are reserved for one month, but the stay can be extended up to three months.

Read also > GLOBAL LUXURY HOTELS INDUSTRY REPORTS

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