The hotel industry continues to thrive – prices and occupancy are rising all over the world.
A HotStats study showed that the hospitality industry is performing well. Hotel occupancy rates are on the rise in Europe, approaching pre-pandemic levels in the US, and even starting to rebound in China.
In the US, performance rose markedly between January and March, the market is now beginning to level off, hospitality performance is at 10 percent of pre-pandemic levels, and experts predict the country could plateau.
According to a HotStats report, in May, the hospitality performance index, which is calculated by dividing total hotel room revenue by the number of rooms and number of days in the period being measured (RevPAR), reached $227 in the US May, which is the same as the previous month, but by 40 dollars less than in May 2019.
Gross operating income per available number (GOPPAR) topped $90 in March and has remained at about that level ever since.
In Europe, occupancy rates were the highest since November 2019. The average price per room per night is calculated by dividing the revenue from the sale of rooms (after discounts, indirect taxes, and the total cost of breakfast or another type of food) by the number of rooms sold during the reporting period (ADR), is also now at or even higher than before the pandemic. European ADRs was $30 higher in May 2022 than in May 2019 and are now up 127 percent from their all-time low in May 2020, according to HotStats.
The spin-off has also risen and is now just six dollars below its May 2019 level. GOPPAR is now at the same level as in 2019.
In the Middle East, which experienced a rapid increase in profits in March, the figure was declining for two months. Now, the region is again seeing an increase from pre-pandemic levels, and experts say the drop is likely due more to seasonality than to COVID-19 or other factors.
GOPPAR hit $73 in May, up $16 from May 2019.
China’s hotel industry is also beginning to revive. Occupancy in May increased by 6 percentage points compared to April. However, rates have now dropped and are now $23 lower than they were in May 2019.