The return in force of customers to hotels in the major European cities, led by Paris and London; a domestic market in the United States that remains as buoyant as ever; a major event - the World Cup in Qatar - that is irrigating the entire hotel industry in the Middle East; and a widespread recovery in the Asia-Pacific region, with the exception of China: all these favourable factors have contributed to making the last quarter of 2022 a very profitable period for the global hotel industry. For the second consecutive quarter, Christopher Nassetta, Chairman of the Hilton Group, noted " steady growth in all segmentswith leisure, business and group RevPAR exceeding all 2019 levels" .
One after the other, they announced their quarterly and annual results, the major hotel groups have closed the Covid page by presenting higher revenues per room - or RevPAR - than in 2019. Hence the positive joint momentum. Keith Barr, CEO of IHG, was delighted " that in the second half of the year we exceeded 2019 levels" he commented. Anthony Capuano, the boss of Marriott, saw the year coming to an end. on a very high note, with RevPAR up 7 % in December and 5 % in the fourth quarter compared with 2019" . All in all, these two groups conclude 2022 with a RevPAR that is still slightly down on 2019, at -4.0% for Marriott over the full year and -3.3% for IHG over the same period.
For its part, Accor, thanks in particular to an increase of +15% in the last quarter of 2022 vs 2019, has even managed to present positive RevPAR compared with 2019. In fact, the French hotel operator's revenue per room is +2% higher than its pre-crisis level, enabling the Group to publish a like-for-like increase in sales of 80% compared with the 2021 financial year. " 2022 was the year of a very dynamic recovery in tourism and our performances, strong growth in all regionsare evidence of this rebound" said Sébastien Bazin, CEO of Accor.
Geographically, over the last twelve months and compared with the pre-pandemic period, the French group has recorded a growth rate of 1.4%, RevPAR up +3% in Southern Europe, including France - It should be noted that on this market and in the economy segment, B&B Hotels is reporting a rebound in RevPAR of +13% vs. 2019 - as well as +5% on the American continent and, even more, +47% for India-Middle East-Africa. This region is being driven by a number of positive factors: the Dubai World Expo, pilgrimages to Saudi Arabia and, last but not least, a number of major events. the World Cup in Qatar. Among the regions that are still not benefiting from this momentum, Accor notes that its hotels in Northern Europe reported RevPAR down 6% compared with 2019, with solid business in the UK negatively offset by a German market where trade fairs and congresses did not play their driving role.
In another part of the world that is losing its main clientele - Chinese travellers - Asia-Pacific recorded revenue per room that was -18% lower than in 2019. However, with the exception of China, which is still mired in its zero covid, the Asian hotel industry has been able to recover in recent months. In South-East Asia, the fourth quarter of 2022 saw a significant improvement in business (up 17 points on the previous quarter), driven by Singapore, leisure customers in Thailand and the reopening of Japan in October. In the Pacific, business levels were even higher than before the crisis.
The expected return of Chinese customers in 2023, following the upturn in transatlantic travel in mid-2022, will further brighten the outlook for the global hotel industry despite the current uncertainties. " Accommodation is a cyclical business, and is not immune to downturns in the macroeconomic environment. But so far we have seen no signs of a slowdown in demand" says Anthony Capuano. As a result, Marriott is forecasting REVPAR growth of between +6 and +11 % globally and between +12% and +18 % for its hotels outside the United States in 2023.
The forecasts for the other groups are similar, including between +4% and +8% for Hilton, between +5% and +9% for Accor and between +10% and +15% for Hyatt. While IHG is not giving any guidance for the current year, its CEO Keith Barr believes that, " despite economic uncertainties, we expect leisure demand to remain strong in many markets, alongside the ongoing reopening of China and a renewed resurgence in business and group travel" .
Group dynamics and the return of business customers
This is because, while leisure customers remain at a high level, the new dynamism of business customers contributes to the upturn in the global hotel industry. This is particularly true in the Atlantic, a market where IHG recorded a RevPAR of +5% higher than in 2019 in the Business segment, thanks to a combination of -2% in occupancy and +7% in rate growth. This good performance by individual business customers, back at 90% from its pre-pandemic level, also explains why Marriott, after two years of stability, was able to negotiate with its key accounts across the Atlantic. an increase in corporate rates approaching double figures by 2023. The American group is seeing a recovery driven mainly by small and medium-sized businesses. "We have seen a slower but steady recovery among large companies, but they still have some way to go to get back to pre-pandemic levels." explained Anthony Capuano during the question and answer session following the announcement of the results.
IHG expects the momentum of business travel in the US to be replicated elsewhere in the world. " Progress in the United States points to potential elsewhere" IHG also points out that negotiations on corporate tariffs for 2023 " should lead to further increases in average prices" . The British group expects business travel as essential as ever among the sector's long-term growth drivers. " Business surveys indicate a continuing return to travel activity and the potential for greater use of hotels to support hybrid and flexible working conditions." underlines IHG.
As far as business customers are concerned, IHG also believes that "groups and meetings should also see a continued recovery in 2023". MICE activity has in fact returned to pre-pandemic levels. "Corporate meetings boosted performance, improving by more than seven points compared with the third quarter.says Christopher Nassetta, Hilton's CEO. When people felt at ease again, they've started rescheduling events like crazyeven large groups, associations" . This momentum is set to continue as Hilton's provisional group bookings volume is up by more than 20 % compared to 2022, " aided by growing demand for company meetings, organisations are bringing their teams back together" .
