Hope for the hotel industry – Asia Pacific returns to profitability, break-even is in sight in Europe, things are improving in the Middle East and even USA seems to be surfing its stormy waters
It has undoubtedly been the worst year for the hospitality industry with forced closures and those hotels that managed to remain open largely having to rely on housing critical care workers and even the homeless to record any form of occupancy. The pandemic may have been felt at its worst at different times by countries across the world, but it has been a similar result: key performance metrics have hit their lowest recorded levels.
For most the worst seems to have passed and contingencies have been introduced to succeed in the ‘new normal’ and prepare so as to ensure that second peaks or second waves are managed and do not have such significant effects on a industry that will carry the wounds from the past months for years to come.
In fact, while latest data from HotStats, the hotel market benchmarking, financial analysis, and performance reporting specialist, does not make positive reading, it does deliver a lot of optimism, especially if we look to Asia Pacific where two consecutive months of positive gross operating profit per available room (GOPPAR) have now been recorded. Though global performance data is still significantly down on 2019, notable monthly recovery strides are seeming to be the trend across most key performance metrics.
But, still, ”the world continues to deal with a pandemic that doesn’t want to subside,” acknowledges Hot Stats in its Jul-2020 round-up of profit and loss data, “The hotel industry could use some breathing space,” it says, and hotels, especially in downtown urban markets, “find themselves in a waiting game”. However, others in secondary and tertiary and particularly in resort markets have found “some preliminary success, a sign that even the biggest pandemic in more than a century can’t quell travel altogether,” it says.
A little bit of positivity and optimism is a good thing. “The proverbial light at the end of tunnel is out there,” explains David Eisen, director of hotel intelligence, Americas at HotStats, but the global hotel industry is far from recovered, and the journey back to profitability will take a careful mix of revenue generation and expense control.
READ MORE via The Blue Swan Daily: Hope for the hotel industry – Asia Pacific returns to profitability, break-even is in sight in Europe, things are improving in the Middle East and even USA seems to be surfing its stormy waters