The US, European, Asian and Middle Easter hotel markets have all recorded year-on-year profit drops of 100% or more amid the Covid-19 pandemic, according to data from Hotstats.
In particular, March saw GOPPAR at European hotels fall by a record 115.9%, the biggest year-on-year decline since April 2009, when GOPPAR dropped 37.9% during the global financial crisis.
RevPAR was down also 66.2% year-on-year, the result of a 44.6-percentage-point drop in occupancy, combined with an 11% year-on-year drop in average rate.
Hotstats said that as all ancillary revenue “plummeted”, it brought TRevPAR down 61.6%, again the largest drop in the KPI since April 2009, when TRevPAR declined 23.5%.
Additionally, sinking revenues were accompanied by double-digit expense drops, the product of hotel closures, scaled-back operations and lighter staffing. Labor costs were also down 28.8% year-on-year on a per-available-room basis, and total overhead costs sank by 25.3%.
A statement by Hotstats read: “As COVID-19 conceivably lessens or peters out in the ensuing weeks and months and hotels reopen, expectations are that hotel performance will pick up from the depths it is in currently.
“But with demand tied closely to GDP growth and expectations of double-digit drops in the second quarter across the globe, hoteliers will be hard-pressed to generate a modicum of revenue throughout the rest of the year and likely will have to wait until there is a vaccine to see profits normalise.”