The Hotel Industry Continues to Improve Despite Rising Prices

Despite the financial turmoil, the hotel industry continues to thrive. Prices and occupancy are rising around the world even as consumer costs for all continue to rise.

The latest research from HotStats finds that the industry is producing strong numbers. Occupancy rates have risen in Europe, the United States is close to pre-pandemic levels and China is showing signs of life.

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In the US, after steep inclines between January to March, the market is starting to level off. HotStats research revealed that the country may have reached a plateau, however, performance is within 10 percent of pre-pandemic levels.

In May, the U.S. hit $ 227 RevPAR, the same as the previous month but down $ 40 from May 2019, according to a HotStats report.

Total revenue was boosted by strong numbers in the department rooms dominated by average daily rates higher than pre-pandemic levels. The corporate journey is also showing steady growth, and HotStats found that the company’s revenue mixing percentage in May was 3 percentage points now from its comp in May 2019.

Total operating revenue per available room (GOPPAR) was over $ 90 in March and has remained at that level ever since.

Europe is showing the highest occupancy rates since November 2019. ADR is also at par or higher now than before the pandemic. European ADR in May 2022 was $ 30 higher than in May 2019 and is now up 127 percent since its all -time low in May 2020, according to HotStats.

Subsidy revenue has also increased and is now just $ 6 from its level in May 2019. GOPPAR is also at the same level now in 2019.

The Middle East, which saw rising revenue in March, fell for two months. However, the region continues to track above pre-pandemic levels and the decline is likely more related to seasonality than COVID-19 or other factors, according to HotStats.

GOPPAR hit $ 73 in May, a full $ 16 higher than in May 2019.

China is showing signs of life after the COVID-19 lockout largely closed the region. Occupancy is still declining but rose 6 percentage points in May to April. Rates have plummeted, however, and are now $ 23 lower than in May of 2019.

HotStats noted that the good news is that with the return of travel, as well as the performance of the hotel industry.

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