As uncertainty and new cases of the Omicron variant increase across the globe, some countries have reimplemented restrictions around travel.
New restrictions obviously mean potential challenges for the hotel industry, and as we have seen throughout the pandemic, every class of hotel can be affected differently. In this latest piece, we look at how Luxury class hotels have performed around the globe, especially in more recent months.
In 2020, luxury hotels saw global occupancy lower than all other classes combined. China luxury hotels, for example, recovered 66.9% of their 2019 levels, which was 4.9% percentage points lower than the combined recovery of all other classes (71.8%). Luxury hotels in the Middle East recovered more than 50% of the market’s 2019 comparable, while the recovery for all other classes was 7.3% percentage points higher.
Fast-forward to 2021, luxury hotels in all regions have approached or even surpassed their 2019 levels in ADR. And different from 2020, luxury ADR recovery came in at higher levels than all other classes. In Europe and the Middle East, specifically, ADR reached 119.7% and 106.1% of 2019 comparables, respectively.
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