The ongoing pandemic continues causing huge disruptions to the global hotel industry. Although hotels implemented increased safety and sanitation measures and adapted to a post-COVID world, recovery to pre-pandemic levels could take years.
According to data presented by StockApps.com, 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.
A Three-Year Recovery to Pre-COVID-19 Levels
The coronavirus outbreak has affected every sector across the globe, but the hotel industry is among the hardest hit. To curb the spread of the virus, countries worldwide imposed lockdown rules, leading to thousands of canceled vacations, and closed hotels in the first half of 2020. Although many of them lifted off travel restrictions allowing hotels to cautiously reopened for the summer travel season, the first two quarters of the year produced colossal revenue drops.
The Statista survey showed the global hotel industry’s revenue plunged to $198.6bn in 2020, a massive 46% drop year-over-year. 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.
The Statista data indicate it will take 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.
Statistics show the number of users in the hotel industry halved amid the pandemic, falling from 1.1 billion in 2019 to 595 million in 2020. Although Statista predicts this figure 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.
World’s Five Largest Hotel Chains Lost $14B in Revenue Amid Pandemic
As the world’s leading hotel market and home of four out of five largest hotel chains globally, the US hotel industry revenues are forecast to jump by 55% YoY to $65.6bn in 2021, still $20bn less than before the pandemic.
However, statistics show it will take years for the US market to recover from the COVID-19 hit. Revenues of Wyndham Worldwide, the biggest hotel chain in the world by the number of hotels, plunged by 36% amid the pandemic, falling from over $2bn in 2019 to $1.3bn in 2020. The company’s 2020 earnings report revealed net loss for the full-year was $132 million, and adjusted net income was $96 million.
Choice Hotels International’s revenue, the second-largest hotel chain globally, dipped by 31% or $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.
However, Marriot International, the third-largest hotel chain with 5,974 hotels in more than 110 countries, witnessed the most significant loss, with revenue plunging by $10.4bn amid the COVID-19 crisis.
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.