Trends

Revenue per available room (RevPAR) remains the driving indicator of hotel performance. But should it?

U.S. weekly hotel occupancy decreased 30.2% to 48.5% during the week of 6-12 September. ADR declined 25.5% to $98.99 and RevPAR fell 48.1% to $47.96.

Canada's hotel occupancy fell 48% to 39.8% during the week of 6-12 September. ADR declined 32.3% to 123.89 Canadian dollars ($93.73) and RevPAR dropped 64.8% to CA$49.32 ($37.31).

2019 had been one of the strongest performing years for the Indian hotel market in the past decade, uplifting hopes for even better performance in 2020. However, 2020 has been the toughest year in living memory and unfortunately looks to carry on the negative trend for the rest of the year due to the global pandemic.

New CBRE Data Provider Kalibri Labs Provides Additional Insights

Many meetings since March have been canceled, postponed or moved to virtual platforms because of the Covid-19 pandemic, but about $2 billion worth of meeting requests for proposals during the second quarter of 2020 were sourced through meetings management company Cvent's network, Cvent senior director of analytics Jeffrey Emenecker said.

International tourist arrivals plunged 93% in June when compared to 2019, with the latest data from the World Tourism Organization showing the severe impact COVID-19 has had on the sector.

Six months since the start of the COVID-19 pandemic, Manhattan’s lodging sector continues to experience record closures. As of early September, approximately 61,450 hotel rooms (representing 58% of total inventory) in Manhattan were closed, with approximately 2,700 rooms reporting to stay closed permanently.

Six months since the start of the COVID-19 pandemic, Manhattan’s lodging sector continues to experience record closures. As of early September, approximately 61,450 hotel rooms (representing 58% of total inventory) in Manhattan were closed, with approximately 2,700 rooms reporting to stay closed permanently.

Hotel owners need to don the hat of institutional investors now more than ever as creating a well-thought and well-researched ‘development-growth-exit’ strategy for their projects will become critical in capitalizing the asset in the post-COVID world.