Hoteliers see multi-year recovery ahead: Poll
Hotel consultancy HVS hosted a webinar on September 8, offering perspectives on hospitality topics, including how the COVID-19 pandemic has affected various regions and the kind of recovery hoteliers can anticipate, as well as the long-term changes the sector is likely to experience. The webinar included a straw poll, in which 51% of the over 1,800 global participants said they expected RevPAR to return to pre-COVID-19 levels during 2023; 23% anticipated a return in 2024. In addition, 35% of the audience expected hotel values to return to 2019 levels in 2023, with 28% estimating a return in 2024.
U.S. occupancy increases slightly
Boosted in part by the Labor Day holiday weekend, U.S. hotel occupancy increased slightly over the previous week, according to the latest data from STR.
August 30 through September 5 (percentage change from comparable week in 2019):
Occupancy: 49.4% (-18.9%)
ADR: US$100.97 (-17.1%)
RevPAR: US$49.87 (-32.8%)
Hotel demand grew to 18 million room nights sold (plus 500,000 week over week). On September 5, occupancy came in at 69.0%, just 2.6% less than the comparable Saturday in 2019, and leisure markets that have showed the highest summer occupancy levels reported strong increases from the previous weekend. At the same time, the markets with the highest occupancy for the week were not leisure destinations but those housing displaced residents from Hurricane Laura and the California wildfires.
Improved performance for Abu Dhabi hotels
Abu Dhabi’s hotel industry reported improved performance levels from previous months, according to preliminary August data from STR.
Compared with August 2019:
Occupancy: -6.4% to 62.9%
ADR: -3.4% to AED307.23
RevPAR: -9.5% to AED193.22
Showing continued early recovery from the impact of the COVID-19 pandemic, each of Abu Dhabi’s three performance metrics were up from June. The occupancy and RevPAR levels were the highest for any month since February. The ADR level was in line with the short-term August average.
Performance up in London, too
STR’s preliminary data for London hotels showed higher performance from previous months but at levels significantly lower than historical averages.
Comparison with August 2019:
Occupancy: -64.4% to 30.7%
ADR: -42.9% to GBP86.40
RevPAR: -79.7% to GBP26.52
Each of the three key performance metrics were up from July levels, while the occupancy and RevPAR levels were London’s highest since March. Regional markets in the U.K. continue to outperform capital cities. Even with the month-over-month improvement, the occupancy and RevPAR levels are the lowest for any August on record in London.
IHG supports equality programs
IHG Hotels & Resorts has announced partnerships and programs with the National Urban League, National Center for Civil and Human Rights and Jobs for America’s Graduates in its efforts to advance equality. These programs will focus on driving action in education, employability and empowerment across the U.S. For example, IHG is helping to support the expansion of the National Urban League’s Urban Apprenticeship Jobs Program (UAJP), which creates pathways to careers through social support services, pre-apprenticeship and registered apprenticeship programs. In addition to the sponsorship support of these efforts, IHG colleagues will support National Urban League affiliates though volunteer activities such as mock interviews and resume review.
Mid-market may lead Indian revival story
India’s midscale segment has become the largest sub-segment among the branded hotel supply in the country in recent years, accounting for approximately 43% of the total supply in the country in 2019. Domestic tourism is expected to become key for the Indian hospitality sector in the post-COVID era, according to hotel consultancy firm HVS. Domestic travel restrictions have recently been eased, which HVS says will lead to a gradual recovery in both domestic leisure and business travel across the country. The ongoing economic headwinds are likely to reduce the per capita income in the country, driving the already value-driven customer seeking a full-service hotel more towards midscale.
Graduate launches cleanliness program
Chicago-based Graduate Hotels launched the “Graduate Cares” program in its 26 U.S. properties. Created in partnership with medical professionals at the Cleveland Clinic and cleaning and disinfection experts, the program helps to rethink end-to-end cleaning and guest interaction procedures. New protocols call for increased safety measures at check-in and check-out, guest rooms to be thoroughly cleaned and sanitized with hospital-grade levels of cleanliness with special attention paid to high-touch surfaces in guest rooms and common areas.