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Coronavirus

China hotels consolidate in wake of zero-COVID lockdowns

High overhead costs and weak traffic force smaller operators to sell

Oriental Pearl Tower in Shanghai. China's largest city had been placed under a two-month lockdown due to a surge in coronavirus cases.   © AP

GUANGZHOU -- China's hotel industry has entered a wave of consolidation as domestic tourism struggles to find its feet after lockdowns in Shanghai and other affluent cities.

In late March, Zhejiang SSAW Boutique Hotels announced that it had acquired two other hotel operators. The deals are worth a combined 140 million yuan ($20.9 million) and would expand its footprint to over 300 locations.

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