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DOWNLOAD NOW: Profit Matters Global Hotel Performance Review 2023

The global hospitality industry is witnessing a complex landscape of recovery and challenge as it emerges from the impacts of the pandemic. Regions around the world, from Europe to the Americas, the Middle East, and APAC, are navigating their unique economic conditions, market dynamics, and consumer behaviors. Here are some highlights from the report that offer key insights into the performance metrics, profitability concerns, and growth opportunities within these
diverse markets, offering a snapshot of the industry's current state and prospects.

Europe:

  • ADR grew by 6.9%, and occupancy lift resulted in RevPAR growth of 18.3%.
  • Challenges included high inflation, surging energy prices, and rising labour costs impacting margins.
  • Midscale properties saw the largest improvement in profit margin.
  • F&B profitability remains a challenge, with a significant fall in profit since 2019.

 Americas:

  • Stabilization of top and bottom-line metrics with a return to pre-pandemic levels.
  • The Caribbean and the United States experienced significant YOY expansions at the start of 2023.
  • Labour costs continue to escalate, impacting profitability.
  • Despite seasonal differences, the Caribbean’s strong performance in 2023 explains investors’ heightened interest in growing their portfolios in this market.

 APAC:

  • Asia Pacific had an excellent 2023, but it was not uniform in its performance levels
  • South Asia showed a strong performance, especially in high season months.
  • India has seen a significant increase in ADR since mid-2022, but it is most certainly the Maldives addition to this region that skews the Gross Operating Profit (GOP) results due to its continued powerful performance.
  • Challenges include rising costs across the board and pressure on operating costs for the luxury segment. Luxury has grown its GOP figure by 9.5% while GOP margins have remained flat between 2019 and 2023.
  • TRevPAR growth varied significantly across major markets with Thailand and Indonesia standing out.

 Middle East:

 The Middle East faced myriad challenges, but also saw opportunity in 2023, making it a dynamic year for hotel performance in the region.

  • Looking at performance by brand scale for the Middle East, there is growth in every class and, in fact, particularly for luxury and ultra-luxury properties where margins have increased by more than 10 percentage points.
  • Despite positive trends, hotels in the region faced challenges that required swift adaptation. Fluctuations in oil prices, economic uncertainties, and the lingering effects of the pandemic posed ongoing challenges to the industry.
  • Development initiatives in Saudi Arabia played a pivotal role in shaping regional dynamics.


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