Skip to content

Search

Latest Stories

HotStats: Hotel industry presses forward despite Delta variant concerns

RevPAR rose $20 over the previous month and is 1,000 percent higher than 2020 lowest point

HotStats: Hotel industry presses forward despite Delta variant concerns

THE PERFORMANCE OF U.S. hotels is improving month by month despite the disruption created by the Delta variant of COVID-19, according to HotStats.

RevPAR in July 2021 was more than $20 higher than the previous month and is now more than 1,000 percent higher than in April 2020, the nadir of hotel performance, according to a blog post by HotStats.


“Occupancy escalated to 60 percent in July this year, helping fuel gains in total hotel revenue. Meanwhile, labor continues to trail, but as hotels, especially in resort markets, ramp back up, payroll is creeping up in step,” said HotStats.“Total payroll hit $92 per available room in July 2021 in Miami Beach, only $18 off its July 2019 level and 143 percent higher than at the same time last year.”

Higher revenue is helping fuel better gross operating profit, with the U.S. hitting $67 in the month, 18 percent off at the same time in 2019, it added.

According to the blog post, though global hotel performance is improving month by month even with the Delta variant, the more pressing concern is if it will remain that way.

The other concerns listed in the post are U.S. remains off limits to most European travelers, and the European Union recommended that Americans be banned from nonessential travel to its member states after a surge in COVID cases here.

The latest STR report for U.S. hotels exceeded 2019 levels in July. But the recovery is not yet complete, STR’s expert said. Other markets around the world saw varied results during July.

Global trends

Despite a higher vaccination rate, hotels in Europe continued to underperform, according to HotStats. That may be connected to the Delta variant concerns.

“That could, however, change due to the successful rollout of vaccines, which has boosted sentiment throughout the continent from travelers and investors, alike,” HotStats said.

In the Middle East, GOPPAR trended up in July, hitting $29, only 11 percent off its July 2019 level and more than 1,900 percent higher than in July 2020, when GOPPAR turned negative. Profits have dipped in February and June in the region.

“Revenue trends have closely mirrored profit trends, a product of controlled expense management, which has seen payroll numbers moderate after a spike in February that helped fuel the profit slowdown,” the blog post said.

According to HotStats, China’s performance has been consistent so far.

“GOPPAR shot upward after its darkest depth in February. Now, as of July 2021, GOPPAR is $2 higher than it was in July 2019, an astonishing feat and one likely fueled by the apparent fact that COVID cases in the country have dropped to near zero after a spike,” the report said.

More for you

Choice Hotels
Photo credit: Choice Hotels International

Choice posts $81.7M Q2 profit, 93K-room pipeline

Summary:

  • Choice Hotels International reported Q2 net income of $81.7 million.
  • Domestic RevPAR fell 2.9 percent due to macroeconomic conditions.
  • Extended-stay portfolio rose 10.5 percent YoY, with a domestic pipeline of 43,000 rooms.

CHOICE HOTELS INTERNATIONAL reported second-quarter net income of $81.7 million, down from $87.1 million a year earlier. Its forecast for the year remained positive, but was downgraded some to account for changes in macroeconomic conditions.

Keep ReadingShow less
Hotel exterior of Motel 6 Las Vegas under G6 Hospitality and Galaxy Hotels partnership
Photo credit: G6 Hospitality

G6, Galaxy aim to grow Motel 6, Studio 6

Summary:

  • G6 Hospitality and Galaxy Hotels Group are expanding Motel 6 and Studio 6 in the U.S.
  • Galaxy said G6 brands outperform others in guest satisfaction and value.
  • One Galaxy hotel generates $8–10M annually; the full G6 portfolio is expected to reach $50M.

G6 HOSPITALITY AND Galaxy Hotels Group are now working to expand the Motel 6 and Studio 6 footprint in the U.S. About 10 Galaxy-managed hotels, totaling more than 1,300 rooms, will operate under the G6 brands, with more to follow.

Keep ReadingShow less
Hotel industry leaders unite at AHLA Summit to support trafficking survivors
Photo credit: AHLA Foundation

AHLA Foundation hosts human trafficking summit

Summary:

  • AHLA Foundation held its No Room for Trafficking Summit and announced Survivor Fund grantees.
  • The summit featured expert panels and sessions on survivor employment and trafficking prevention.
  • Since 2023, the program has awarded more than $2.35 million to 27 organizations.

AHLA FOUNDATION RECENTLY held its annual “No Room for Trafficking Summit” to advance practices and reinforce the industry's commitment to addressing human trafficking through collaboration, education and survivor support. It also announced the 2025–2026 NRFT Survivor Fund grants, which support organizations providing services and resources for survivors.

Keep ReadingShow less
Fed interest rate July
Photo credit: Chip Somodevilla/Getty Images

Fed holds rates steady despite Trump pressure

Summary:

  • The Federal Reserve held interest rates steady and gave no signal of a September cut.
  • Developers and brokers are calling for lower borrowing costs to unlock supply and revive stalled deals.
  • The Fed’s decision followed surprise news that the U.S. economy grew 3 percent in Q2.

THE FEDERAL RESERVE held its key interest rate steady and gave no indication of a cut in September, despite growing pressure from President Trump and his Fed appointees, USA Today reported. The July 30 decision keeps the Fed’s benchmark rate at 4.25 percent to 4.5 percent for a fifth straight meeting.

Keep ReadingShow less
BWH Hotels expands with AI-driven strategy and outdoor lodging focus

BWH sticks to growth plan despite headwinds

Summary:

  • BWH Hotels is staying the course on long-term growth, investing in AI and developer support.
  • A new insurance program has saved some BWH hoteliers $50,000 to $60,000 annually.
  • It aims to reach 5,150 hotels in five years, with 300 deals signed last year and 200-plus in the pipeline.

BWH HOTELS IS maintaining its long-term growth strategy despite market uncertainties, with President and CEO Larry Cuculic citing momentum across core markets. The company is investing in AI, supporting developers and focusing on long-term goals.

Keep ReadingShow less