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Dreadful Results of London Hotels in March and Cheap Rooms at IHG Hotels

While the coronavirus pandemic is still not over, it is hard to estimate losses of the global economy. However, it is safe to say that the hospitality industry is among the most affected. Even hotels in major destinations, which are normally nearly full, are facing problems these days. With most countries being on the lockdown, international tourism has virtually gone to zero. As business meetings are now usually held online, hotels cannot count on business travelers as well.

London, one of the most visited cities in the world, is a vivid example of the current state of the market. The preliminary March 2020 data provided by STR show drastic results of the COVID-19 pandemic. Hotels in London have significant declines in all metrics. When compared with March 2019, the key performance metrics are the following. The occupancy fell by 57.8% to 34.5%. The average daily rate, however, didn’t lose that much. It decreased by 10.4% to GBP124.15. Naturally, the revenue per available room was negative too. It lost 62.1%, falling to only GBP42.88.

In March 2020, London hotels recorded 31 days of double-digit declines in revenue per available room and occupancy. The whole month was exceptionally unprofitable for the UK’s capital. When the more detailed statistics appear, we will keep an eye on the performance of other European countries and the most popular destinations.

Meanwhile, hotels in Europe try to support people who are at the frontline of the fight with the coronavirus pandemic. InterContinental Group (IHG) offers cheap rooms for everyone involved in the relief. Government workers, local authorities, medical staff, municipalities, and other groups are eligible for rooms at reduced prices if they need emergency accommodation. IHG mentions that there has been an increased number of requests from public and governmental institutions, and so the hotelier decided to reduce their prices.

Moreover, IHG hotels in China and the UK have been used to provide shelter for not only key workers but also people who need to be isolated and people in need. The company is studying these relief support efforts in order to offer help in more destinations worldwide. This is an unprecedented situation, and we must all stand together to ensure people’s health and make our contribution to recovery efforts, mentions the company.

18.04.2020

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