The hotel industries in seven key Asia-Pacific markets reported profitability levels well below pre-pandemic levels, with only Beijing above 40 per cent of the 2019 comparable, according to STR‘s September 2021 monthly P&L data release.
Beijing’s gross operating profit per available room (GOPPAR) of US$29.91 was 70 per cent of September 2019 levels. Singapore (US$39.99) came in at 35 per cent using the same time comparison, while Hong Kong (US$6.22) was at just 10 per cent.
Of seven key Asia-Pacific markets analysed by STR, Tokyo hotels saw the biggest profitability decline over the past several months
Sydney, Bali, Bangkok and Tokyo were all in negative GOPPAR territory; with Tokyo having seen the biggest profitability decline over the past several months.
“Only three of the region’s key markets reported positive profit conversion in September 2021: Singapore, due to quarantine demand; and Beijing and Hong Kong, which have remained resilient despite the Delta variant outbreak,” said Jesper Palmqvist, STR’s area director for the Asia Pacific region.
“Sydney, of course, has been limited due to lockdowns, but with the reopening and allowance of international travellers underway in New South Wales, the market should soon return to positive profitability. Bali and Bangkok, on the other hand, remain further behind in the recovery cycle, with negative profit conversion at -55 per cent and -44 per cent, respectively.”
The hotel industries in seven key Asia-Pacific markets reported profitability levels well below pre-pandemic levels, with only Beijing above 40 per cent of the 2019 comparable, according to STR‘s September 2021 monthly P&L data release.
Beijing’s gross operating profit per available room (GOPPAR) of US$29.91 was 70 per cent of September 2019 levels. Singapore (US$39.99) came in at 35 per cent using the same time comparison, while Hong Kong (US$6.22) was at just 10 per cent.
Sydney, Bali, Bangkok and Tokyo were all in negative GOPPAR territory; with Tokyo having seen the biggest profitability decline over the past several months.
“Only three of the region’s key markets reported positive profit conversion in September 2021: Singapore, due to quarantine demand; and Beijing and Hong Kong, which have remained resilient despite the Delta variant outbreak,” said Jesper Palmqvist, STR’s area director for the Asia Pacific region.
“Sydney, of course, has been limited due to lockdowns, but with the reopening and allowance of international travellers underway in New South Wales, the market should soon return to positive profitability. Bali and Bangkok, on the other hand, remain further behind in the recovery cycle, with negative profit conversion at -55 per cent and -44 per cent, respectively.”