Hotel sector is on the way to recovery – APJ
AS COVID lockdown concerns amongst travellers ease, the hotel sector is well on the way to recovery, outstripping projections.
According to Napier & Blakeley’s director Ian Gardner, who was speaking at an ESG panel discussion at the HICAP ANZ conference, the past couple of years has forced the sector to innovate and act quickly, diversifying offerings and income streams associated with hotel properties.
Although the conference noted that occupancy across Asia Pacific varies due to slow changes to government setting in some countries, elsewhere occupancy continues on its path back to 2019 levels with all major markets above 83% of 2019 levels, including North America, Central America, South America, Australia, Europe, Africa and Middle East.
At the same time, more than 50% of global markets were at peak Revenue per available room (RevPAR) compared to a 2019 baseline, and the higher average daily rate (ADR) is offsetting the reduced occupancy.
Gardner said industry indications are that hotel investment is also strong but margins are currently compressed. Continue reading
Hotel Sector is on the way to recovery
It was great to be a part of HICAP ANZ and hear that the Hotel sector is well on the way to recovery, outstripping projections. The past couple of years has forced the sector to innovate and act quickly, diversifying offerings and income streams associated with Hotel properties.
I was fortunate to be part of the ESG panel discussion leading into the conference, which was organised by Ashurst Lawyers. The other panellists were Gus Moors (head of hotels at Colliers), Steve Whittington, (partner at Ashurst Lawyers who specialises in tax) and Campbell Johnston (partner at Ashurst Lawyers who advises on financing arrangements including hotel financing). We discussed the status of ESG, future impacts, opportunities, finance and tax implications of investing in ESG in the sector.
The consensus seemed to be that the sector as a whole was a little behind, there are also plenty of leaders in the Hotel sector, but accelerated take-up of the ESG challenge is needed more broadly in the sector. Continue reading
