U.S. could see a 41.4% occupancy decline ahead
Data from PWC shows unprecedented March declines for the industry, with April’s and May’s even deeper as COVID-19 impacts the U.S. lodging industry. The firm’s outlook for 2020 anticipates a 41.4% decline in occupancy, ADR falling to 19.9% and RevPAR down to 53.1%.
U.S. Airbnb bookings rise 18% in past 30 days
Airbnb bookings are rebounding as Americans rush to book post-lockdown vacation rental stays, according to AllTheRooms Analytics, a provider of short-term rental analytics. U.S. Airbnb total nights booked over the next 90 days is up 18.3% in the past 30 days and down only 15.6% year-on-year, although this also reflects a substantial growth in the number of properties listed on Airbnb in the past year. U.S. Airbnb occupancy rates, the percentage of nights that properties listed on Airbnb are booked over the next 90 days, are up 17.1% in the past 30 days.
Australian markets with strong local demand may fare better
According to a recent analysis from CBRE, Australia’s markets will look to shift demand locally in the short term. Other key takeaways from the analysis include:
• Brisbane was the strongest-performing market over the year to March 2020, albeit with RevPAR growth of just under 1%
• International visitor arrivals reached a new high of 8.7 million for the year ending December 2019, an increase of only 0.2% on 2018
• Spending by domestic visitors for the year ending December 2019 was US$80.7 billion, up 12.4% on 2018, whilst overnight spend by international visitors was US$31.4 billion, up 4.0% on 2018
• Annual RevPAR declined nationally by 5.7% to US$131 over the year to March 2020
• National occupancy declined 4.4% to 70.9% while ADR declined 1.4% to $184 over the same period
• Hotel sales volume for Q1 2020 about US$100 million
Signs of a rally emerge in the midst of COVID-19
The massive drop in global hotel revenue and profit performance depicted in March data continued its free fall in April, marked by dramatic year-over-year decreases across the operating spectrum, according to data from HotStats. The growing chasm in YOY comparison suggests that month-to-month performance measurement may be more reliable in tracking a rebound during the COVID-19 era, signs of which are slowly emerging out of China and suggestive that other global pockets are a month out from an eventual upswing.
MGM begins reopening Vegas properties
MGM Resorts International said it plans to reopen the Bellagio, New York-New York, MGM Grand Las Vegas and The Signature starting June 4, following the closure earlier this year of all of its U.S. properties amid the coronavirus crisis. At opening, amenities at all properties will be limited. As demand for the destination builds, additional venues within these resorts will open and other MGM Resorts properties on The Strip will reopen. The company also recently released a seven-point safety plan to mitigate the spread of the virus, protect guests and employees and rapidly respond to potential new cases.
Italian luxury resort, the Hotel Villa d’Este, to reopen
Italy’s Hotel Villa d’Este in Lake Como will reopen on June 18 with new standards of operation designed to further protect guests and employees. Some of the sanitizing measures include: Temperature scanner provided for employees and guests, hand sanitizer available for all staff and guests throughout the property, reduction in the number of tables in restaurant/bar per social distancing regulations and replacement of all printed materials with digital solutions. Also, the hotel will not assign the same room to a same-day departure/arrival by different guests in order to provide a deep sanitation between stays.