According to HotStats, global hotel performance is improving month-over-month. The hotel industry’s pressing concern is if that trend will continue through a difficult period. The Delta variant of COVID-19 has caused cases to spike in many regions and has impeded gradual rebound. Despite challenges, the hotel industry looks forward.
HotStats reports that the United States continues to see a climb in revenue. U.S. RevPAR in July 2021 was more than $20 higher than the previous month and is now more than 1,000 percent higher than where it was in April 2020. Occupancy escalated to 60 percent in July 2021, fueling gains in total hotel revenue. And although the industry continues to experience a labor shortage, hotels—especially those in resort markets—ramp up in payroll. For instance, HotStats found that total payroll in Miami Beach hit $92 per available room in July 2021, only $18 away from the July 2019 level and 143 percent higher than July 2020. Higher revenue is assisting in the growth of gross operating profit, with the United States reaching $67 in July 2021, 18 percent away from the July 2019 comparable.
The vaccination rate in the European Union is higher than in the United States, according to HotStats. However, the HotStats data finds that hotel performance in the region is still low. However, that could change with significant vaccine rollouts, which have helped boost morale throughout the region for both travelers and investors alike.
HotStats found profit dips in February 20201 and June 2021 in the Middle East, but GOPAR trended upward in July 2021 to hit $29, only 11 percent off the July 2019 comparable and 1,900 percent higher than when GOPAR turned negative in July 2020. Revenue trends in the region have mirrored profit trends, which HotStats reports are a product of controlled expense management, which has seen payroll numbers spike moderately in February 2021.
China’s performance has been consistent, according to HotStats data. GOPAR trended upward after its lowest performance in February 2021. As of July 2021, GOPAR is $2 higher than its level in July 2021; these numbers might be impacted by the country’s COVID-19 cases dropping after a spike.