Frugality drive takes toll on luxury hotel revenues

Five dozen luxury hotels in Beijing lost money in the past few years as tough policies and regulations took effect against government corruption and waste of public funds, an insider from the capital's tourism authority said during the annual legislative session.

Beijing saw 60 five-star hotels fall into deficit last year, and the vacancy rate climbed to 40 percent, according to Duan Qiang, chairman of Beijing Tourism Group and a deputy to the National People's Congress.

Meanwhile, the prices of rooms at these hotels declined in every quarter of 2014, Duan said.