HotStats has released its annual “Profit Matters Global Hotel Performance Review,” examining global hotel industry performance. For this year's report, HotStats consulted owners, operators asset managers and brand executives, including the IHG Owners Association and Hotel Asset Managers Association Europe.
“The last two years have been tumultuous for the global hotel industry, but as 2021 illustrates, and as the data show, the proverbial light at the end of the tunnel is getting closer and becoming sharper,” said Pablo Alonso, CEO of HotStats. “Now is the time for hoteliers to be extra vigilant vis-à-vis the bottom line, which means making sure that as revenues rise, costs remain in check, something hoteliers swiftly addressed at the outset of the pandemic. Consulting data will be central as the recovery moves forward.”
Gross operating profit per available room in U.S. hotels showed “a steady ascent” from 2020 and “kicked into higher post-pandemic gear” during the second quarter of 2021. The end of the year, however, finished “choppy” due to external variables, including the labor crunch. The lack of workers not only meant businesses had to cut some services, but competition for employees also drove an increase in wages.
The report suggests the hotel industry will not be back to optimal operating performance until the corporate and group pieces return. In 2021, corporate volume mix was down 6.2 percentage points compared to 2020, while overall group rooms revenue volume mix was down 4.4 percentage points. At the same time, transient rooms revenue volume mix was up 3.3 percentage points.