financials

European hotels breathed a sigh of relief in early May when the ECDC announced Europe had passed the peak of coronavirus infections. Now comes the hard part

Middle East Hotel performance momentum could be blunted over resurfacing of more cases across region and some governments unwillingness to shut back down

Despite top-line growth, hotels in APAC were able to avoid cost creep and managed to reduce labor costs and overheads by 6.7% and 1.3%, respectively

As of May, and on a month-over-month (MOM) basis, hotel performance is either stabilizing or picking up. April, fingers crossed, was the bottom

For the moment, hotels will rely almost entirely on rooms revenue because, thanks to social distancing, things like restaurants and spas will be eschewed

COVID-19 plunged a knife in the heart of the hotel industry and in one fell swoop destroyed demand, sending revenue and profit to historically low levels

While hotel performance data will continue to be anaemic for the near-term, May could see the first buds of promise emerge in the Middle East region

Hotels in Europe did a good job at containing the impact of vanishing revenue on profit, achieving increase in flex percentage on a month-over-month basis

The adage “March winds and April showers bring forth May flowers” appropriately captures current U.S. hotel performance – April was a month of grim data

Improvement will be measured in baby steps, presenting a clear-cut case for month-to-month comparison, as the hotel industry looks to build itself back up