Wynn Resorts CEO wants Vegas Strip to reopen in May
In a recent op-ed, Wynn Resorts CEO Matt Maddox called on the Nevada governor to begin to reopen the Las Vegas Strip in mid- to late May with extensive safety measures in place, assuming the state is in line with certain benchmarks around the spread of the coronavirus. Maddox laid out Wynn’s health and safety guidelines for reopening, which include allowing a maximum of four people to ride in an elevator at one time, as well as requiring guests to enter the resort through doors that are either propped open, automated or manually operated by an employee.
Accor’s 1Q 2020 revenue down 17%
Accor’s consolidated first-quarter 2020 revenue totaled €768 million (US$833 million), down 17.0% as reported and 15.8% like-for-like. RevPAR fell by 25.4%, reflecting a sharp deterioration due to the global spread of the COVID-19 epidemic, first in Asia-Pacific (-33.7%) and then in other regions, including Europe (-23.2%) and North America (-22.2%). Changes in the scope of consolidation (acquisitions and disposals) had a negative impact of -€7 million (-US$7.5 million) largely due to the disposal of Mövenpick leased hotels.
U.S. hotel industry: Steep declines
Reflecting the continued impact of the COVID-19 pandemic, the U.S. hotel industry reported significant year-over-year declines in the three key performance metrics during the week of April 12-18, according to STR. In comparison with the week of April 14-20, 2019, the industry recorded the following:
Occupancy: -64.4% to 23.4%
ADR: -42.2% to US$74.53
RevPAR: -79.4% to US$17.43
Aggregate data for the top 25 markets showed steeper declines across the metrics: occupancy (-71.3% to 21.5%), ADR (-48.3% to US$81.89) and RevPAR (-85.2% to US$17.63). Among those markets, Oahu Island, Hawaii, experienced the largest drop in occupancy (-90.4%) and the only single-digit absolute occupancy level (8.0%). The decline in occupancy resulted in the steepest decrease in RevPAR (-94.0% to US$11.39). Miami/Hialeah, Florida, posted the largest decline in ADR (-56.8% to US$101.51). Occupancy in the New York, market was down 63.8% to 33.3%. In Seattle, Washington, occupancy dropped 71.6% to 20.0%.
Airbnb faces online revolt
Hundreds of Airbnb hosts reportedly have taken to online groups to complain that they have yet to receive any payments from a US$250 million coronavirus relief fund announced by the company last month, according to a CNBC report. Others have said the amounts they have received are “insulting.” Hosts have been criticizing Airbnb’s response to massive guest cancellations. Airbnb said it began a first round of support payments this week totaling more than US$140 million.
Americans hesitant around travel
Advertising and public relations agency Mower conducted a survey of 1,000 U.S. adults to learn what common activities they will feel comfortable returning to once the state shelter in place requirements are lifted. While 28% would feel at ease taking a vacation by car, only 16% would fly on an airplane and a mere 12% would travel internationally.
U.S. hotel market trends, now and future
The COVID-19 pandemic has forced economists and industry prognosticators to revise forecasts to account for its impact and to project the timing and nature of the recovery. Key findings of a report from Horwath HTL on the U.S. hotel market show that though growth rates decelerated, the hotel industry set “highest ever” records in 2019 in four of five key performance metrics (occupancy remained flat):
• US$131.21 ADR
• US$86.76 RevPAR
• 1.9 billion room nights available
• 1.3 billion room nights sold
Pandemic-influenced 2020 year-end hotel industry estimates are as follows:
• 37.9% occupancy (-42.6%)
• US$112.91 ADR (-13.9%)
• US$42.84 RevPAR (-50.6%)
