As the world slowly recovers due to easing of Covid-19 restrictions by several countries, the hotel industry, one of the most affected sectors due to the pandemic, has also begun its recovery. To comprehend the rate of its recovery, HotStats revealed a study of the sector’s profit and loss across the world.

According to Hotstats, a global, monthly profit-and-loss data benchmarking company that provides hotel performance reporting, the first-quarter hotel performance worldwide ended in a positive note with March profit surging across most of the regions. This has led to a sign of emergence of stronger revenues, better conversion rates and encouraging travellers all around.

The European Gross Operating Profit Per Available Room (GOPPAR) hit EUR 35.97, which is the highest number reached since its peak in October 2021. Though still EUR 12 lower than March 2019, it is up 229 pc year to date (YTD) compared to the same time in 2021.

An increase in GOPPAR had also led to an up-lift in both Revenue Per Room (RevPAR) and Total Revenue Per Income (TRevPAR), with both metrics up high triple-digit percentages in March compared to the same month last year. Though occupancies crept up, it was the average daily rate that had boosted hotelier fortunes.

Though expenses saw a bit of a reduction in March, overall costs are however proving to be recalcitrant. Total labour costs on a per-available-room basis was still below 2019 levels but up 143 pc YTD since last year. At the same, other departmental costs are not abating, including utilities, which, at EUR 7.50 on a PAR basis, were up 107 pc in Quarter 1 versus the same time last year.

The US also saw a similar uptick in its operating fortunes with GOPPAR in March of USD 70 over January this year and USD 90 compared to the same month on 2019. It was the highest profit month in the US since February 2020, which was considered the last normalised month of performance before Covid-19 took over.

Many of the trends in the US followed Europe, with ADR growth leading the way in the recovery. March ADR on a nominal basis was at its highest level since October 2018.

In the Middle East after Expo2020 concluded in March the GOPPAR at the time was USD 114.33 leading it to become the highest-performing month for the metric in the Middle East since before 2018 and 41pc higher than in 2021.

TRevPAR was at its highest point since April 2018, bolstered by a boost in food and beverages (F&B) revenue, which hit USD 71.87 on a PAR basis. F&B revenue could continue its upward momentum, especially since places like Dubai have relaxed their food and beverage rules during the month of Ramadan, April 1 to May 1.

China however did not have a similar fortune as with emergence of Covid-19 restrictions hospitality sector was dragged down. March was a grim month for China’s hotels, with GOPPAR moving into negative territory for the first time since February 2020, around when pandemic began.

As GOPPAR dwindled to USD 3.83, payroll costs dove with it, signalling a cut back in the workforce. Total payroll on a PAR basis fell to USD 28, the lowest it’s been since July 2020.