Real Estate
Posted: 4 years ago

Impact of COVID-19 on the Hospitality Industry - Cushman & Wakefield Shares Report

At the end of March 2020, the weekly hotel load in Georgia decreased by 86% compared to the same period in 2019, according to a report by Cushman & Wakefield, a real estate market consulting firm.

As we read in the report, COVID-19 caused special damage to the hotel sector. According to the STR (Travel Research Organization), more than 41,000 hotels in the EMEA (Europe, the Middle East and Africa) region have been shut down so far. Of these, about 40,000 hotels were closed in European countries, including Georgia. Hotel loading has been declining since February. According to STR, the number of rooms booked in Asia, the Pacific and European hotels at the end of March 2020 was 32.4%, 37.7% and 22% of the number of rooms booked in the same period in 2019, respectively.

"In Georgia, at the end of March, the weekly hotel load rate decreased by 86% compared to the same period in 2019," the report reads.

According to a report by Cushman & Wakefield, RevPAR revenue from one hotel room has also declined in European hotels. Since March 16, annual RevPAR in European countries has fallen by 87.68%. In Tbilisi hotels, the income of one room has been reduced by 88%.

"The world is still in the process of dealing with a pandemic. Consequently, the future of the hotel sector in European countries is bleak. However, the example of China allows us to see a general picture of how events can develop in the post-virus defeat period. With the decline in the number of new cases of infection, the workload of Chinese hotels has increased. The workload of hotels has increased according to local demand, which was fully expected.
As long as the borders of the countries around the world are closed, we should expect the hotel sector to be partially operational at the expense of local demand, ”Cushman & Wakefield said.