Since the start of the COVID-19 global pandemic, the US hotel industry became the only country that did not record a profitable month in October. However, compared with September, the overall situation in the United States is improving, while Europe is regressing. At the same time, the Middle East and the Asia-Pacific region are still above the positive water level.
Even so, the positive momentum into the fourth quarter may still be backed off by the escalation of the new crown epidemic.
American Hotel Industry
In November, due to the continued small increase in hotel occupancy rate and average room rate, the profitability of U.S. hotels increased. This month's revenue per available room (RevPAR) reached US$40.99, although it was 78% lower than the same period last year, but compared with September An increase of 365% was when RevPAR was at its lowest point at $8.99.
Total revenue (TRevPAR) also continues to maintain its upward trend, but due to the lack of auxiliary expenditures as a whole, hoteliers have obtained better profitability than usual. This month, TRevPAR reached US$60.89, US$5 higher than the previous month, but it was a year-on-year decrease of 79.3%.
With the restrictions of the new crown epidemic prevention and control measures and the arrival of the off-season for tourism, the catering income of US hotels has been simultaneously affected. Although RevPAR of the catering industry reached double digits for the first time since March, it still fell by 87.9% year-on-year; total labor costs also decreased by 23% compared with September. Due to the increase in revenue and the decrease in labor costs, the percentage of total labor costs in revenue fell by nearly 20 percentage points to 47.8%.
Profit and Loss Performance Index-United States Total (USD)
European Hotel Industry
As the United States rebounded back to the positive region, Europe faced a crisis of further recession. The October occupancy rate dropped by more than 5% from the previous month, and the single room rate dropped by 4 Euros, resulting in a 20.7% drop in RevPAR. Originally, the hotel would usher in a rebound in October, but due to the repeated effects of the epidemic, it fell again in October.
The decline in RevPAR led to the decline in TRevPAR, which was a decrease of 18.5% in October compared with September and a decrease of 76.7% year-on-year.
Similar to the situation in the United States, other expenditures are also suppressed. Total labor costs fell 52.6% year-on-year, while total indirect costs fell 45.6% year-on-year. Nevertheless, the decline in expenditure was not enough to make up for the decline in revenue, resulting in GOPPAR after two consecutive months of positive growth, the profit rate in October recorded -11.1%, fell to -5.06 euros.
Profit and loss performance indicators-European total (Euro)
Asia Pacific Hotel Industry
The highlight of the global hotel industry is still the Asia-Pacific region, where the monthly occupancy rate exceeded 50% for the first time, and China has exceeded the 60% threshold in the past three months.
After a brief drop in September, RevPAR was lower than in August, but rose back to $53 in October, an increase of 17% from the previous month. TRevPAR reached US$101.50 this month, which marked a simultaneous rebound in auxiliary revenue and room sales. In September, although RevPAR was lower than August, TRevPAR was higher, and the trend was still optimistic in October. GOPPAR reached US$27, an increase of US$9 from the previous month, but a year-on-year decrease of 54.8%.
In China, GOPPAR reached US$43.25, a decrease of only 12% compared to the same period last year, and TRevPAR reached US$119.62, which was only 8.7% lower than the same period last year. This shows that the country’s hotel industry has gradually emerged from the shadow of a pandemic.
In terms of spending in China, costs continue to rise, but the rise in costs shows that the recovery is also proceeding at the same time, which is a good trend. The labor cost per available room was US$32.94, a decrease of 10.7% over the same period last year, and the total management expenses were US$26.56, a decrease of 13.7% over the same period last year.
Profit and loss performance indicators-Asia Pacific total (USD)
Middle East Hotel Industry
After a series of difficult months, the hotel industry in the Middle East is rising steadily. Revenue per available room has climbed to nearly US$50, an increase of 19.8% from the previous month, but a year-on-year decrease of 58%. TRevPAR reached US$88.54, of which TRevPAR income from the catering industry rose to US$31.12, an increase of US$6 from the previous month.
The combination of income and expenses has resulted in a substantial increase in profits in the region. GOPPAR recorded US$14.11. Although it was down 82% year-on-year, it was 595% higher than in September, and this was the third consecutive month of positive profit.
Profit and Loss Performance Index-Total in the Middle East (USD)
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