Editorial Note: This will be the last edition of the CHR Weekly Roundup until Friday, January 8th, 2021. We wish you all a happy and healthy holiday season!
LODGING SECTOR UPDATE
China, the U.S. and Europe continue to trade at significantly different occupancy levels. China has continued to operate through normal seasonality with occupancy well above 50% each week. The U.S. saw a noticeable dip around the Thanksgiving holiday and has since remained stagnant with less travelers in the air and on the roadways. Europe has risen slightly from its initial second lockdown decline but still shows 75% of rooms empty.
Digging deeper into U.S. performance, P&L data for the first 10 months of the year shows profitability declines far greater than revenue decreases and EBIDTA per available room below $1.
How a Total Revenue Approach can Benefit Your Hotel "Exploring and mining for revenue generation outside of rooms is a first step in getting back to profitability. By measuring and monitoring total revenue per available room (TRevPAR), hoteliers have the ability to take a magnifying glass to all revenue sources and identify both underperformance and outperformance. Above all, it can reveal revenue opportunities to help carry a hotel out of the pandemic carnage."