Due to the pandemic and the strict zero-COVID policy, foreign capital has fled Shanghai in droves. Many foreigners have also left the city.
About half of the Bulgari hotel—known for its iconic luxurious apartments—is empty for now. Recently, news broke out that the company owning shares in Bulgari hotel is putting it up for sale, but no one seems interested.
OCT (Asia) Company wholly owns OCT Shanghai Land, which owns 51% of Shanghai Shouchi Enterprise. OCT Shanghai Land plans to list its 51% stake in Shanghai Shouchi Enterprise on the Beijing Stock Exchange. Shanghai Shouchi Enterprise owns 133 units in the Bulgari hotel.
The board of directors of OCT group said that selling Bulgari will increase the group’s stock assets and capital turnover.
The luxurious hotel has been badly hurt by 3 years of strict Zero-Covid policy in China. During this year, Shanghai Shouchi, the owner of Shanghai Bulgari Apartments, will incur an accumulated loss of about 19 million dollars.
In the first half of 2022, 57% of the apartments in Bulgari were occupied. Shanghai Bulgari Apartments does well, even though the rent is high.
Xu Yang works in Shanghai OCT group. He said that this sell off of Bulgari apartments is common sense, as few Chinese people can pay tens of thousand dollars for this apartment. The hotel mostly harbors rich foreigners. But they would not come due to the zero-COVID policy.
Compared to 2019, when the pandemic started, there would be 95.4% fewer non-Chinese people entering and leaving China in 2021. Because China isolates itself under the zero COVID policy, many foreign business leaders no longer go to China.
According to The European Union Chamber of Commerce in China, half of the foreigners who lived in China have left since the pandemic began.
The chamber’s survey shows that
74% of respondents thought that the zero-COVID policy made it harder to hire and keep foreign high-skilled workers.
33% of respondents said that senior managers and key personnel turned down job opportunities in China
Companies from both Europe and the U.S. are thinking about leaving China.