The current situation is serious and fragile. While the leisure hospitality is prospering in many regions, the city hospitality is struggling, and the market recovery will take longer than originally expected. International fairs are being cancelled and business tourism stays uncertain. The danger to turn into a local infection-hotspot makes forecasts nearly impossible. Product- and location specific judgement and valuation is needed. The mutual togetherness of banks, operators and investors is more important than ever before. The attached paper gives you insights and details about the current situation in Europe while highlighting the performance of some major cities.
In times of Corona a business trip does not necessarily mean plane and hotel, but a laptop transfer from desk to sofa. The Global Business Travel Association (GBTA) has published some very clear numbers.
a small summary of do's and donts during crisis situations
The coronavirus – a challenge that also affects the hotel market, which is otherwise spoiled by growth
Many hoteliers, operators and owners are faced with a previously unknown exceptional situation. In Berlin, for example, where several trade fairs (IHIF/ITB) have now been canceled or postponed
In the hotel the guests stay away – definitely not a desirable situation, but there are ways to minimize the damage.
Hotels certainly did not want empty hotel rooms or canceled reservations. Even if hotel owners and operators cannot act as desired due to the difficult demand situation, they can still react.
Crisis situations also challenge the asset class, which is basically performing and developing positively.
Pandemics typically show deep declines in hotel occupancy rates, which cannot be increased in the short term but usually recover faster than expected.
Part of this para hotel industry is the well-known best-performing startup Airbnb. The holiday home provider, which itself emerged from the financial crisis in 2008 as the new winner,
The following presentation is based on input from numerous mrp hotels customers from the hotel industry who have applied for liquidity support.