Performance in Europe was described as “touch and go” by HotStats, with countries seeing a recent resurgence in cases.
The Asia-Pacific region recorded positive goppar for the second consecutive month in July, the only region to do so.
Goppar climbed to $11.82, a 225% improvement on June, when Goppar was $3.63 - the first time the metric turned positive since February. Goppar was still 76.8% down on the year.
Trevpar reached its highest mark since February, as room occupancy and average rate climbed, coupled with slight upticks in ancillary revenue, including a jump in food and beverage revenue, up 209% against April, when F&B revpar hit a low of $7.86.
Expenses continued their downward trend on a year-over-year basis. Total labour costs were down 44.6% year on year, while total overhead costs dropped 41.4% on a year on year basis. Profit margin for the month was up to 17.4% after falling into negative territory from March through May.
In China July was the third consecutive month of profit gains. Goppar, down 34.5% year-on-year, was up to $25, $10 more than June. Occupancy in the country climbed above 50% for the first time since December 2019, and with a slight uptick in rate, revpar was at a higher level than it was in January. Trevpar was up $15 over June and 655% higher than February, the height of Covid-19’s impact on the country.
“The global hotel industry is far from recovered, but the proverbial light at the end of tunnel is out there,” said David Eisen, director of hotel intelligence, Americas, HotStats. “Getting back to profitability will take a careful mix of revenue generation and expense control. In this current environment, we’ve seen, expectedly, both revenue and expenses come down. The hope is that on the way back up, revenue climbs and hoteliers continue to keep costs at bay, thereby ensuring quicker and more sustained profitability.”
In Europe, although profit remained in negative territory, a break-even level was in sight as trevpar saw its largest jump in three months, up to $36.91, 113% higher than June. The growth in total revenue came on the back of rising revpar, which dipped into double digits for the first time since March, bolstered by an average rate above $100 and a climb in occupancy.
Goppar was recorded at -€3.26, down 104% against the same time last year, but 77% higher than June. Total labour costs on a per-available-room basis were up more than €2 from June to July, a sign that more hotels are reopening and getting back to business after preceding closures. At -8.8%, profit margin at Europe’s hotels was still negative in July, improved: In June, profit margin stood at -83.1%.