In its most recent Europe-focused webinar, held on 4 June, STR provided listeners with the latest data and insights into the pandemic’s impact on hotel performance in key markets across the continent.
Managing Director Robin Rossmann began by assessing the wider recovery from Covid-19, highlighting that China (47%) and the US (35%) are leading the way in occupancy levels around the world, while the Middle East (38%) is becoming stable too. Rossmann did, however, go on to explain that China took three months to reach its current occupancy from a low of 15%, providing a timeframe for the European market.
The growth in occupancy levels was largely due to the lifting of restrictions on hotels in these countries, with domestic leisure and business travel returning as a consequence – and in America’s case, the launch of SpaceX, which helped deliver year-on-year growth in Florida submarkets such as Titusville/Cocoa Beach.
In terms of the types of hotels that have seen the most growth in China and the US, Rossmann revealed that the economy sector had recovered faster in the latter, with occupancy in budget-friendly properties (47%) almost doubling those in the top end of the market (25.7%) during the week ending 30 May.
Across the pond in Europe, hotel performance remains low but is showing signs of starting the path towards recovery. Despite overall occupancy levels remaining at around 15% for open hotels as of the beginning of June, DACH countries and The Netherlands delivered the continent’s first green shoots, with the Swiss Alps seeing a spikes of over 70% occupancy during the most recent Bank Holiday. Germany’s Baltic Coast recorded similar figures last month, with occupancy levels close to 60% during one weekend, while the Dutch market was boosted by The Hague, which saw its hotels over half full from 30-31 May.
As for business on the books, forward occupancy for the next twelve months is still relatively muted, with cities such as Edinburgh and Zurich topping the list throughout August, September and October. Pickup remained negative too, with cancellations outweighing new bookings in May, but there was some hope for Europe’s resort destinations. When comparing Spain’s islands to its cities, the Balearics and Canaries showed significantly higher forward occupancy levels than Madrid and Barcelona throughout the peak summer season and into September – the former sitting resiliently on the books between 20-30%.
Rossmann closed the webinar with a look at what’s next, addressing the beliefs of big brand CEOs from across the hotel sector, who predicted that 2019 RevPAR levels could return by 2023. “The recovery has continued across the world in the last two weeks,” he explained. “However, there is a question over whether it is going to plateau and at what level.” Despite concerns of a second wave, governments across Europe are beginning to encourage a return to travel and tourism, and though occupancy levels may well be low whilst the industry gets back on its feet, hotels are likely to open en masse throughout June and July.
Additional webinars will be held each week as STR monitors performance data in all world regions.
