Global Hotel Alliance’s first quarter room revenue increased 62% as travel industry continues to recover

Global Hotel Alliance, the world’s largest group of independent hotel brands, reported a 62% increase in room revenue in the first quarter of 2022, driven by higher spending and longer stays as the travel industry continues to recover from the impact of the coronavirus pandemic.

The United Arab Emirates and the Maldives topped the charts in the first three months of the year, with GHA hotel brand properties in these markets earning average revenue per stay of $1,270 and $8,530. respectively, compared to the global average of $670, UAE-based GHA said on Tuesday.

“What is clear from the first quarter results is that travel is enjoying an encouraging recovery,” said GHA chief executive Chris Hartley.

“After two years of travel restrictions and uncertainty, pent-up demand for leisure travel has been unleashed and GHA hotel brands are benefiting from the rebound.”

Travel and tourism are starting to show signs of recovery from the coronavirus-induced downturn, with many companies starting to ramp up recruitment as countries reopen their borders.

However, high oil prices and the impact of war in Ukraine are tempering the expected recovery in the travel industry. Oil prices are hovering above $100 a barrel and are up about 60% from a year ago.

Hotels in the United Arab Emirates welcomed 19 million tourists in 2021, the Emirates Tourism Board said last month.

The country’s hotels welcomed 29% more visitors last year compared to 2020 and generated 28 billion dirhams ($7.6 billion) in revenue, a 70% increase year-on-year previous year, the board said.

Domestic tourists accounted for 58% of the total number of guests.

Ten hotels out of more than 500 included in GHA Discovery, the alliance’s loyalty program, accounted for a third of total room revenue in the first quarter.

Six of these 10 hotels were located in Dubai and the Maldives, with their revenues accounting for 14.4% and 8% of GHA Discovery’s total room revenues for the period, respectively.

Opening of hotels in the United Arab Emirates in 2022 – in pictures

Overall, global room revenue in the three months to the end of March exceeded 60% of levels reached in 2019, before the pandemic began, GHA said.

Meanwhile, total revenue (with and without room) in the first quarter of this year increased by 76% compared to the corresponding period last year, thanks to an increase of 34% and 32% nights sold and average spend per night, respectively, the GHA data showed.

Domestic stays in the first three months of the year rebounded to 2019 levels, while international stays only reached 50% of pre-pandemic levels.

Increased demand for luxury leisure travel has led to higher spending, with GHA Discovery hotels achieving average daily rates (ADRs) 78% higher than Q1 2021 and 14% higher than the same period in 2019, the data disclosed.

Inter-brand revenue – representing stays for members who register with one GHA brand and register with another – was approximately 2.5 times higher in the first quarter of 2021, compared to the same period l year, said GHA.

In the best performing hotels, the occupancy rate of multi-brand guests increased by 8%.

The alliance’s global portfolio has grown to more than 40 brands, with approximately 800 properties in 100 countries.

The South African hotel group Sun International, with 15 establishments, joined GHA in December 2021 while NH Hotel Group was integrated in June.

Updated: May 10, 2022, 09:49

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