Hotel industry indicators continue to decline

The recovery of activity in the hotel industry is still not perceived during a first quarter in which occupancies have remained low, despite the fact that in many destinations the percentage of hotels in operation does not exceed 30% of the total existing supply.  The average revenue per available room is 16.75€, a decrease of 65% compared to the first quarter of last year. 

The main indicators included in the Hotel Sector Bar in Spain , jointly prepared by STR and Cushman & Wakefield cwith data from 1.200 hotels and more than 165,000 rooms in the Iberian Peninsula, confirm that tourism and hotel activity continues to show no signs of recovery.

It should be remembered that the first quarter of last year was the last one with normal activity until mid-March when the pandemic was declared, which explains why the indicators are still declining. 

The occupation in Spain 23% during the first quarter, 54% less than in the same period of 2020.

Bearing in mind that the first quarter is traditionally the one with the least activity, the figure shows that the indicators are not yet recovering, pending that the mobility restrictions may be lifted in the European Union in the coming months.

For its part, the RevPAR (revenue per available room) has remained at 16.75€, a 65% down by 65% compared to the first quarter of 2020.

The ADR (average daily rate) was 73 euros, 24% less than last year, which shows the effort of hoteliers to maintain prices despite the low occupancy.

In this price correction, the biggest drop is recorded in Barcelona with 40% less, while there are even price increases in Baleares (+20%) or Canarias (+0.5%). This increase is explained by the shortage of supply as the destinations have most of the hotels closed during this period.  

According to data from the Barómetro, Zaragoza is the city with the best occupancy data, with 33.4%, followed by Madrid with 26%.The Canary Islands remains at 20.4%, with the biggest percentage drop since last year it had an occupancy rate of 63%.

Según Albert Grau, partner and co-managing director of Cushman & Wakefield Hospitality in Spainña, “a large number of hotels are still not opening and are postponing dates based on events.According to Bruno Hall, also a partner and co-director of the consultancy, "in large cities we have to wait for the evolution of the business segment in order to achieve a good performance. For this we must be able to offer confidence to the traveler”.  

STR indicators show that in countries with less restrictions on mobility, such as the United States demand has been reactivated, reaching occupancies close to 60% during the second week of April. Also in Europe, demand continues to show confidence and willingness to travel, awaiting good news on the vaccination process.

The Hotel Sector Barometer collects data from 1,200 hotels and more than 165,000 rooms in the Iberian Peninsula. The study is the result of a partnership between STR, a global provider of benchmarking, analytics and market knowledge, especially in the hotel sector, and Cushman & Wakefield Spain.