Hotel sector may not recover to 2019 levels until 2022-23, says HVS

With much of Europe’s hotel sector still closed for business the industry faces a “huge challenge” to rebuild consumer confidence once Covid-19 lockdown restrictions start to lift, and may not fully recover to 2019 levels until 2022-2023, says HVS London.

The consulting and services organisation said that providing hotel businesses survive financially – utilising a combination of rent and bank loan freezes, Government support, working with owners and furloughing staff – they also face the question of how long it will take for consumers to once again feel confident staying in hotels.

HVS chairman, Russell Kett, said: “When demand for hotels does start to return, whether that’s later this year or next year, operators will be coming back into a very different market to previously, with a new set of consumer concerns and requirements.

“Building trust between hotelier and customer will be paramount with businesses operating and presenting their services in a way that makes the guest, and the staff who take care of them, feel comfortable, confident and protected.”

HVS added that on-going hygiene and cleaning protocols will be top of the agenda, with global operators Marriott, Hilton and Accor already launching programmes designed to communicate and promote high standards of hygiene and cleanliness.

Operators will need to consider how best to protect guests and staff at each interface – screens at check-in and a remote check-in/out option; social distancing in public areas such as restaurants, corridors and lounge areas; controlling the numbers of people using lifts at any one time; as well as how guests can, and should, make safe use of leisure facilities, pools, gyms and spas.

HVS anticipates most hotels will re-open gradually, adding rooms and rehiring staff when demand improves. This might result in the need for furloughing schemes to be continued for some staff while hotels implement this ramping up.

Kett added: “Governments must understand there is no ‘one-size fits all’ approach to the hotel sector and prematurely curtailing the furlough scheme could sound the death knell for many hotels.

“Likewise, kitchens need to consider a pared down menu that can be produced by a smaller team as well as with what could be limited supplies. Room service may also need to be stepped up as some guests will perceive this as providing more safety.”

“This pandemic is likely to change our habits until a satisfactory vaccine is developed and consumers will remain cautious about using hotels until their trust is restored. Longer term we are confident that the European hotel sector can bounce back to levels experienced in 2019, although it may well be 2022 or 2023 before this is accomplished,” concluded Kett.