APAC’s hotel industry cratered about two months before the rest of the world, but the region has been able to comeback at a quicker pace since.
Both TRevPAR and GOPPAR were artificially inflated YOY, 118.9% and 296.8%, respectively, on account of the depths from which the KPIs have come in a year’s time.
In an ominous sign, most expenses in the operated and undistributed departments were up YOY, signaling potentially what’s to come for other regions. Most note that expenses would reach an inflection point, where they would show some growth, and APAC, it appears, has met its. Total labor costs and total overheads were up in the month 13% and 14.8%, respectively, versus the same time a year ago.
Profit margin in the month was up to 24.5%, 51.7 percentage points higher than in March 2020.
Middle East Moves On
The Middle East continued its ascent. Occupancy stayed steady in March at just a tick below 50%, with RevPAR moving up 58.3% YOY to $72.65. As RevPAR rose, so too did TRevPAR, which at $119.74 was 44.3% higher than at the same time a year ago. GOPPAR checked in at $37.70 in the month, which was well up over March 2020, when GOPPAR broke even.
Like APAC, the Middle East is showing signs of cost creep. Though total labor costs continued to be down YOY, both utilities and overheads moved up, a sign that operations are resetting to a closer point of normalcy.
Profit margin of 31.5% was 30.7 percentage points higher than last March and more than 12 percentage points higher than February.