News & numbers Inside independents
With 2022 in full swing, the hotel industry has reached another key phase of recovery with the pandemic situation more stabilised, hopefully bringing more normalised levels of hotel performance as the year progresses. STR examines the data behind independent hotel performance in the Benelux and Netherlands, while highlighting the forecast for wider Europe.
O
verall, it was a difficult year for the Benelux with noticeable improvement late in Q3/early Q4 giving way to new restrictions as the year concluded. Revenue per available room (RevPAR), the gold standard metric for measuring performance across market segments, indexed at a high of just 63 for independents and 58 for branded properties when compared with 2019. As seen in many other parts of the world, recovery in occupancy and average daily rate (ADR) recovery is much further along on weekends, which points to leisure demand remaining the primary driver of business until a more significant return of international arrivals, business travel and groups. Regional markets that can attract more of that leisure demand are also outgaining most of the major cities, which are more dependent on the corporate sector.
European demand segment forecast European travel spend by segment, % relative to 2019 levels
2020
30% 20% 10% 0%
-10%
-20% -30% -40% -50% -60% -70%
Domestic leisure Source: Tourism Economics International leisure Domestic business International business 2021 2022 2023 2024 2025 Top-line performance
Like the Benelux as a whole, the Netherlands’ independent properties were slightly ahead in top-line performance recovery on a total-room-inventory basis, although levels were similar for branded hotels. Demand improvement in the country began as restrictions were eased during the summer, and each segment’s occupancy recovery peaked in October – index of 74 for independents and 70 for brands. Interestingly, it was November that showed the largest gains in ADR for both independent and branded hotels, including independents with an index of 91 when compared with 2019. However, semi-lockdowns implemented in mid-November led to a significant number of cancellations in December, and the impact extended into the early portion of 2022. Recovery levels were similar in Amsterdam, but branded properties showed slightly more strength in ADR with a recovery peak of 86 in November. The highest occupancy recovery point for either segment came in October when independents in the capital city indexed at 69 when compared with 2019 levels. By the end of the year, however, occupancy plummeted across the market. Looking ahead, the Benelux regional markets continue to trend ahead of the capitals in occupancy on the books. Additionally, booking windows remain short and cancellations remain common as travellers navigate uncertain times. When aggregating forecasted levels for the major cities in Europe, RevPAR recovery is projected to ramp up by the start of 2023. ●
RevPAR recovery forecast
European markets, RevPAR indexed to 2019, February 2022 forecast Q1
Q2
100% 80% 60% 40% 20% 0%
2020 Source: Tourism Economics 2021 2022 2023 Q3 Q4
Data is compiled from STR’s 2022 Independent hotel show Amsterdam report.
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