Dubai reports highest occupancy since February
Dubai’s hotel industry reported its highest occupancy level since February, according to preliminary September data from STR.
Year-over-year declines in the key performance metrics remained significant. Compared with September 2019:
Occupancy: -37.6% to 45.4%
ADR: -20.8% to AED284.15 (US$77)
RevPAR: -50.6% to AED129.03 (US$35)
Even with the year-over-year declines, September was Dubai’s second consecutive month with occupancy above 40.0% (August: 41.0%). ADR and RevPAR, while substantially improved from pandemic lows, were lower than August’s levels.
Expedia study on importance of OTA travelers
A new Expedia Group study, in partnership with global research firm BVA BDRC, examines the contributions of OTAs to the U.S. travel and tourism sector, the spending patterns of OTA travelers, and the role of OTAs in the hotel booking journey. The research points to the increasing importance of OTA travelers to propel economic recovery for the U.S. travel industry. Key findings include:
- Travelers are 57% more likely to book their travel through an OTA now than before COVID-19
- More than two-thirds say value is the most important factor in booking decisions
- More than one-third want to compare properties in one location to find the best option for their needs
- Domestic OTA travelers are good for communities, spending 12% more on meals and drinks, 6% more on activities, and 27% more on car rentals
NYC’s luxury Mark hotel survives
This is what survival looks like for a luxury New York City hotel in October: Empty rooms, US$8,000 suites, and Jean-Georges Vongerichten meals on the sidewalk. The Mark Hotel, recently named Manhattan’s best by Travel + Leisure, has had a rocky year. It faced foreclosure in May after travel restrictions forced the Upper East Side property to close. Even now, roughly four months after it reopened, occupancy rates are roughly 50% lower than typical, but owners are optimistic.
London occupancy down
STR’s preliminary September data for London hotels showed lower occupancy but higher room rates compared with August.
Year-over-year declines remained significant. Comparison with September 2019:
Occupancy: -65.8% to 29.7%
ADR: -45.3% to £93.15 (US$121)
RevPAR: -81.3% to £27.64 (US$36)
Like previous months, the occupancy and RevPAR levels are the lowest for any September on record in London.
Australia’s regions to outperform capital cities
New STR data shows that Australia’s short-term hotel performance will remain similar to recent months with regional areas outperforming capital cities. Parallel to other countries across the world, higher occupancy in regional areas is especially pronounced on weekends, and occupancy-on-the-books data for the next 90 days (as of October 5) shows a similar pattern. Data for October 17 shows regional Australia’s occupancy on the books at 46%, while the capital cities show 26% in the metric. November and December data follows suit, with regional Australia data sitting between 14-32% and capital cities between 8-17%. Post-Christmas is where the trend begins to shift slightly, with more Australians set to head out of town for their summer vacations.
How are asset managers coping?
A new survey highlights asset managers’ thoughts, experiences and forecasts for the upcoming year as the hotel industry continues to deal with the ongoing pandemic. The Boston-based Hospitality Asset Managers Association polled over 100 participants, on topics ranging from the impact of COVID-19 on RevPAR, to which major brands were viewed as having most effectively addressed guest health and safety concerns. The survey also went into depth on the current and future financial status of participant hotels and made predictions on when the recovery will proceed.