The quarterly results presented by the world's leading hotel companies reveal a definite sense of optimism.optimism. Following Accor's announcement at the end of April that sales would rise by 85 1TP3Q compared with the first quarter of 2021, the statements made by their executives are unanimous. " We are increasingly optimistic that the gap in revenue per room will narrow (Editor's note: RevPAR) significantly below pre-pandemic levels in 2022" says Anthony Capuano, CEO of the Marriott group. Similarly, Hilton has presented results solid" for the first three months of the year, enabling the Group to redistribute dividends to its shareholders". earlier than we had anticipated "says Christopher Nassetta, Hilton's CEO.
Of course, the sector is not expected to recover completely until 2023-2024, but March seems to have firmly sealed its return to better days. " Mars can be seen as a definitive turning point and the start of a solid and rapid recovery for the hotel industry, accompanied by growth in the number of flights offered by airlines" says Gabriel Escarrer Jaume, CEO of Melia Hotels International.
The gradual upturn in intra- and intercontinental travel and the return of long-haul customers suggest that hotel occupancy levels will continue to improve over the coming months. In March, the Marriott group already noted that the occupancy rate of its establishments worldwide stood at 64 %, just under 10 points lower than in 2019. A positive trend that gained further momentum in AprilThis was a month in which many hotel groups recorded results almost identical to the pre-pandemic period.
Thus, after a start to the year penalised by the release of the Omicron variant, the Melia Group's figures have improved steadily, starting from a RevPAR of 57.2 % of what it was in 2019 in January, then rising to 83.4 % in March, before return to its pre-Covid level in April. And this case is not unique. Marriott has seen its North American hotels also return to pre-crisis levels, while at Hyatt, RevPAR for the Americas, Europe and South East Asia regions exceeded 2019 levels in April.
Admittedly, the Easter and spring holiday periods played a part in this overall result, filling hotels with leisure guests, particularly in resort destinations. But several other factors also explain this comeback, starting with prices on the rise for several months now and are generally above their 2019 level.
Positive trend for MICE and business travel
At the same time, hoteliers are also delighted with the development of business travel and the MICE segment. "We are continuing to see a resurgence in business and group travel, which is contributing to improved RevPAR in many of our key urban markets" said Keith Barr, CEO of IHG Hotels & Resorts. For his part, Gabriel Escarrer Jaume said "We are delighted to see a gradual recovery in business travel and even a return to growth in the MICE segment towards the end of the year." .
For the second half of the year, Melia is already expecting " an increase in activity in the MICE and business travel segments thanks to the easing of restrictions and the confirmation of events. "The Spanish group expects its hotels in the major cities to be close to pre-covid levels, based on growth in bookings from American and British customers and on the return of international conferences and events. In Germany, where the hotel industry is dependent on business travel and major trade fairs and congresses, Melia expects an improvement in this area in the second half of the year.
The quarterly results presented by Accor at the end of last month showed the dynamics underway around the world with a Middle East region back to pre-covid levelsdriven by business in Dubai and, more recently, by the resumption of pilgrimages to Saudi Arabia, an upturn in South America thanks to " a recovery in demand from business customers "Accor also expects a recovery in the Pacific region following the opening of Australia's borders, which had long remained closed.
On the other hand, China, one of the first countries to see a recovery in the hotel sector, has been bogged down for some time in its Zero Covid strategy and compares unfavourably with other parts of the world. For example, while Marriott recorded a 11% increase in RevPAR in the Middle East-Africa region, the Greater China region lagged behind with a decline of -41.9%. "Business in Greater China continues to be affected by restrictions put in place to control the increase in Covid cases." Keith Barr also points out, with IHG noting a decline in RevPAR of -51% in March compared with 2019.
More generally, Asia is seeing a slower recovery in its hotel business due to the lack of international travellersThis is an important customer base for many countries in the south-east of the continent. But the coming months should see an improvement on this front. While Melia has noted that " Domestic demand remained strong in cities such as Saigon, Yogyakarta, Makassar, Jakarta and Kuala Lumpur, with occupancy rates similar to 2019." the Spanish group expects international travellers to " do a strong comeback in the second half."
