Latest figures reveal that global RevPAR jumped by 10.5% between January and June compared to pre-pandemic levels. All regions bar Asia Pacific have now seen a full recovery in RevPAR terms. Furthermore, analysts predict more improvement in global hotel performance for the rest of 2023 and beyond.
Global RevPAR up on 2019
The JLL Global Real Estate Perspective for August reports that the hotel sector is enjoying a buoyant year. Global revenue per available room rose by 10.5% between January and June this year compared to the same period in 2019.
The report also finds that all regions, with the exception of Asia Pacific, have recovered from the pandemic. As a result, global RevPAR is now higher than pre-pandemic levels.
EMEA stands out as the best-performing region, with a 188% increase in RevPAR in the year to May compared with 2019. The Americas are close behind, showing a 114% uptick.
Predictions on track
Earlier this year, JLL predicted “one of the most exciting years for the global lodging industry”. The latest figures prove this forecast to be correct in all regions. Resort hotels have shown particularly strong performance.
Resilience so far this year
According to JLL, hotels in the Americas have “shown resilience to macroeconomic headwinds”. The company attributes this strength to the solidity of available spending for travel. In addition, demand for city hotels has increased, particularly within the luxury accommodation sector.
As a result, JLL predicts a continued improvement in global hotel performance for the rest of this year and beyond as travel returns across the board.
Predictions for 2023
JLL forecasts higher profitability for hotels this year, particularly in the Americas and Europe, due to “muted supply growth”. Consequently, hotels can increase their rates and thereby see a higher RevPAR.
Luxury establishments are “poised to reap the benefits of the ongoing increase in global wealth,” says JLL. They also stand to make the most of higher-end consumers, dedicating a higher proportion of their income to travel.
Beyond 2023
New technology, including AI, will become one of the main characteristics of global hotels in the long-term, according to JLL. The company reports that the main objectives are to offer a better guest experience and to optimise workflows.
Technological solutions include virtual tours, chatbots and self-service kiosks. In addition, digital platforms allow hotel employees to learn new skills and save time with automated procedures.
(Source: JLL)
