The July 2021 Global Hotel Performance Data report from HotStats found that while occupancy, rate and revenue are doing better worldwide, the COVID-19 delta variant is poised to drive the metrics down again.
U.S.
U.S. hotel revenue per available room in July 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, the nadir of hotel performance.
Occupancy grew to 60 percent over the month, helping fuel gains in total hotel revenue. While labor is still down, some hotels, especially in resort markets, are ramping back up and lifting payroll as well. In Miami Beach, Fla., total payroll hit $92 per available room in July 2021, only $18 off its July 2019 level and 143 percent higher than at the same time last year.
Higher revenue is helping fuel better gross operating profit, with the U.S. hitting $67 in the month, 18 percent off at the same time in 2019.
Europe
In Europe, where the vaccination rate is higher than the U.S. (at least in the European Union member nations), hotel performance is still down, but the improving vaccination numbers have boosted sentiment throughout the continent from travelers and investors alike.
Middle East
After profit dips in February 2021 and June 2021, gross operating profit per available room was up in July to $29, only 11 percent off its July 2019 level and more than 1,900 percent higher than in July 2020, when GOPPAR turned negative.
Revenue trends have closely mirrored profit trends, a product of controlled expense management, which has seen payroll numbers moderate after a spike in February that helped fuel the profit slowdown.
China
In Asia, China’s performance has been consistent. GOPPAR spiked after its darkest depth in February. As of July 2021, GOPPAR is $2 higher than it was in July 2019—a feat the report calls “astonishing.” The report also noted that COVID cases in the country have dropped to near zero.