Skip to content

Search

Latest Stories

HotStats: Omicron variant could derail hotel industry’s recovery

Government travel restrictions could impact bookings and meetings

HotStats: Omicron variant could derail hotel industry’s recovery

THE OMICRON COVID-19 variant could derail the hotel industry’s fledgling recovery if countries like the U.S. move forward to tighten testing policies, according to HotStats. Future hotel bookings, meetings and other hotel-related activity will be impacted by the expectation of travel impediments, whether self-imposed, company-imposed or government-mandated, it added.

In the U.S., major indices were still down double digits in October 2021 compared to same month two years ago, according to a blog post by HotStats.


“Since a rapid uptick in occupancy from the beginning of the year through the summer, hitting an apex in July, occupancy in the U.S. has since more or less flatlined, a signal that the leisure boom could not be sustained at the same levels prior,” said HotStats.  “Though much maligned, there is propitious data surfacing in corporate travel. In October, corporate ADR was $7 higher than in October 2019 and $35 higher than in the previous month. Corporate volume mix, defined as the proportion of rooms sold at the corporate rate compared to total rooms sold, has grown 6 percentage points since July.”

Overall, though the U.S. cost base overall remains stunted, revenue continues to lag 2019 levels, with TRevPAR down 30 percent in October versus the same month in 2019. At $68.97, GOPPAR was down 37 percent in the month versus its 2019 level, it added.

“The problem for the travel industry is that the fear factor, whether science proves it to be justified or not, has returned almost overnight,” said Gary Bowerman, director of travel and tourism research firm Check-in Asia.

Global recovery

RevPAR, TRevPAR and GOPPAR were off some 30 percent in October this year in Europe when compared the same month in 2019, the blog post said.

According to HotStats, the drop in performance metrics was made abundantly more difficult as the continent deals with a recent surge in COVID that is now being exacerbated by Omicron and prompting many countries to turn back to restrictions.

After Austria reinstituted a lockdown on November 22, it has extended it until December 11, becoming the first EU country to take such a measure in the face of the COVID-19 surge. Portugal also reintroduced tighter restrictions.

The October data, saw a resurgence in the Middle East, bolstered by Expo 2020 in Dubai, a 182-day World Expo that began at the beginning of October and runs through March, said HotStats. At $76, GOPPAR was 5 percent higher than at the same time in 2019 and a full 484 percent higher than in October 2020.

As Asia-Pacific continues to piece together its comeback, it, too, is tightening borders in response to the Omicron specter. GOPPAR in the region was recorded at $43 in October, down 38 percent when compared to the same month in 2019, but 126 percent higher than in September 2019, HotStats said.

More for you

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
Amex GBT & Chooose Launch Hotel Emissions Tracker

Amex GBT, Chooose to launch hotel emissions tracker

Summary:

  • Amex GBT and Chooose are launching a hotel emissions tracking tool to calculate users’ Hotel Carbon Measurement Initiative reporting requirements.
  • Emissions data in Amex GBT’s Global Trip Record and Data Lake ensures consistency across travel programs.
  • In January, Finland-based Bob W found hotel carbon emissions are five times higher than HCMI estimates.

SOFTWARE FIRMS AMERICAN Express Global Business Travel and Chooose are launching a hotel emissions tracking tool in the third quarter of 2025. The new tool, integrated into Amex GBT’s platforms, will provide standardized hotel emissions data to calculate users’ Hotel Carbon Measurement Initiative reporting requirements.

Keep ReadingShow less