Of course, the impact of the pandemic is weighing on the results of hotel groups, all of which are on a downward trend in the first quarter of 2021. However, with a gradual improvement in demand in certain markets, especially in the United States, China and Dubai, the horizon seems to be slowly emerging. Christopher Nassetta, CEO of Hilton, said to himself, for example « satisfied« results for the first three months of the year, while his Hyatt counterpart, Mark Hoplamazian, considers that they have “ exceeded expectations« .
However, the American group saw its revenue per room – the RevPAR – decline by 48.9% compared to the first quarter of 2020. With a lower supply of budget and mid-range hotels, relatively more resistant to the crisis because they were dependent before all domestic customers, Hyatt is doing less well than Hilton, whose RevPAR is down “only” 38.4% compared to early 2020. With 33.7% drop in revenue per room, IHG outperforms the competition and takes advantage of the evolution of demand in China, but especially in the United States where the British group is widely represented.
On the other hand, the atmosphere is more gloomy for the other main European players. The Spanish group Melia, for example, shows revenues down by more than 70%. Its president, Gabriel Escarrer Jaume, declared that “the first quarter results are not surprising given the stagnation in demand created by a third wave of the pandemic. “The absence of international clients and MICE events also led the group to close half of its hotels during the period. ” Without surprise “: The story is identical on the side of Accor and its CEO Sébastien Bazin, to comment on a decrease in turnover of 48% compared to the first quarter of 2020, and -57% compared to the same period in 2019.
The results announced by hotel groups say a lot about the dynamics of recovery in the world, with a European continent still at the heart of the Covid storm, but signs of improvement elsewhere. Thus, frequentation of Hilton hotels exceeds 40% in Asia-Pacific and the Middle East / Africa and is approaching 50% in the United States. On the other hand, it does not even reach 20% in Europe, stagnating at 19.3%.
Europe lagging behind the United States and China
In the same vein, the occupancy levels by continent of Accor hotels are also eloquent. In Asia-Pacific, attendance stands at 42.3%, despite travel restrictions in China in January and February, the situation having improved markedly in March. Another market to have restarted, the United Arab Emirates is driving up hotel attendance in the India / Middle East / Turkey region, which stands at 36.9% on average. “Dubai has recorded strong growth in European travelers due to largely relaxed border restrictions,” notes Accor in particular.
This rebound in activity contrasts with the European situation, where many countries experienced strict containment measures at the start of the year. In Northern Europe, hotel attendance barely exceeds 15%. This virtual absence of clientele leads hoteliers to practice an accommodating pricing policy with regard to rare travelers, resulting in a parallel decline in the average price. As a result, in the first quarter of last year and compared to early 2019, revenue per room fell by more than 85% in Germany and the UK, where most hotels were closed by government decision.
A l’inverse, the absence of confinement in France over the period has in a way “supported” the activity, the RevPAR of Accor hotels only falling by 60.8%. The group notes that this figure “ reflects an improvement compared to the fourth quarter of 2020 driven by the province (-49.4%) receiving in particular a domestic business clientele“. However, the group anticipates a more difficult second quarter for the French hotel industry due to the new confinement put in place in April.
Optimistic hoteliers for the coming months
What to expect in the months to come? Most of the leaders of large hotel groups are reasonably optimistic. Christopher Nassetta, at Hilton, believes that the best glimpse of recent times should last: “ We expect this positive momentum to continue” , did he declare. An opinion shared by Mark Hoplamazian, CEO of Hyatt: “ We are optimistic about continued growth in demand in the coming months and for the rest of 2021. »
With vaccination campaigns now in full swing and the coming summer vacation, the outlook is indeed more favorable. While saying he is extremely cautious, Gabriel Escarrer Jaume, expects ” a return to almost normal »For frequentation of the group’s resorts. The Spanish hotelier is counting in particular on the return of American tourists to fill the rooms of its numerous establishments in the Caribbean and in Mexico. In the latter country, reservations for Melia hotels have returned almost to the level of 2019.
While considering that ” volatility risk remains for the rest of the year“, The CEO of the IHG group, Keith Barr, points out that the data taken from the reservations made” clearly indicate a further improvement for the coming months. »
Last year, the best observed during the summer did not last long in the face of the resumption of the pandemic in the fall. Will the vaccination prevent the souffle from falling this year?, allowing a real resumption of business trips and corporate events at the start of the school year? While relying heavily on leisure customers for the coming months, the hoteliers are hoping for nothing. Besides the good signals from the leisure clientele, the CEO of Hyatt sees “ positive indicators in other travel segments. »
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