The global hotel industry is anticipated to take years to recuperate from the pandemic’s hit despite the increased implementation of safety and sanitation measures.
StockApps released data indicating that the revenues of the global hotel industry are expected to grow by 43.4% year-over-year and reach $284.7bn in 2021, still $83bn less than in 2019.
The Corona Virus outbreak particularly imposed major losses in the hotel industry following stringent measures such as lockdown rules and travel bans. This resulted in thousands of cancelled vacations and closed hotels in the first half of 2020.
Despite the lift of travel restrictions that enabled hotels to cautiously reopen for the summer travel season, the first two quarters of the year produced colossal revenue drops.
A Statista survey showed the global hotel industry’s revenue plunged to $198.6bn in 2020, a massive 46% drop. Although the entire sector is expected to witness a recovery with revenues rising by $86.2bn in 2021, this is still deep below the pre-COVID-19 levels.
It is estimated to take up to three years for the hotel industry to recover from the effects of the COVID-19 pandemic. In 2022, revenues are projected to grow by 20% and reach $342.6Bn, $1.3bn less than in 2017.
In 2023, hotels around the world are forecast to generate $390bn in revenue. By the end of 2025, this figure is expected to rise to $456.2bn.
The number of travellers was recorded to have halved throughout the pandemic falling from 1.1 billion in 2019 to 595 million in 2020. Despite the predication of this number to rise to 845.8 million in 2021, that is still 218 million below 2017 levels. By 2023, the number of users is forecast to recover to 1.19 billion.
Revenues of Wyndham Worldwide, the biggest hotel chain in the world by the number of hotels, plunged by 36% during the pandemic, falling from over $2bn in 2019 to $1.3bn in 2020. The company’s 2020 earnings report revealed that the net loss for the full-year was $132 million, and net income was $96 million.
Choice Hotels International’s revenue, the second-largest hotel chain globally, dipped by 31% – $340.7 million for the full year 2020. In 2019, the company reported annual revenue of $1.1bn. This figure plunged to $774.1 million last year.
Marriot International, the third-largest hotel chain with 5,974 hotels in more than 110 countries, witnessed the most significant loss, with revenue dropping by $10.4bn.
Hilton Worldwide Holdings, as the fourth largest hotel chain globally, followed with a $1.5bn revenue loss in 2020.
Statistics show that the world’s five largest hotel chains, including Intercontinental Hotels Group as the only non-US company on this list, plunged by $14bn amid the COVID-19 pandemic.