Hospitality Insights | Q2 2022 (Colliers)

In Colliers Hotel Insights | Q2 2022, we look at:

• RevPAR and ADR performance across Asia Pacific in Q2
• The recovery of Singapore's hotel market, including an outlook of supply
• The case for investing in hotel assets and recommended strategies for investors

Two quarters into 2022 and what travel in a post-COVID-19 world will be is starting to take shape. Travel restrictions continue to be reduced en-masse across the world, with airline traffic up to 69% of pre-COVID (2019) levels at the end of March 2022. According to the latest forecast by IATA, air traffic is expected to exceed pre-COVID levels by 2024. Driving demand for those seats will be domestic and increasing number of tourists, with the UNWTO forecast that by tourism arrivals would have exceeded 2019 levels by the end of 2023 in certain regions.

Once heralded as the harbinger of doom for business and group travel – it seems the desire to meet in-person has once again triumphed, as leisure (mostly visit, friends and relatives), meetings, and events travel lead the recovery.

However, once again head winds threaten. Whether it’s the ever-present threat of a resurgence of a deadly variant, high inflation, labour bottlenecks and increased cost of living has meant reduced disposable income. Question is, will the desire to travel outweigh the need to save, thereby dampening the recovery, at least in the short-term.

In terms of hotel performance, room occupancies across Asia increased to 48.5%, with ADR improving to US$83.69, a recovery in RevPAR of 12.3%. However, there remains a great divide between the more open Southern countries versus the closed Northern region, with China especially remaining closed for the foreseeable future.

This report was originally published in https://www.colliers.com/en-hk/research/2022-q2-hospitality-insights-colliers

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