According to STR statistics, European hotel performance was 27 percent below 2019 norms last week. Just a week earlier the hotels in Europe were performing better and were just 13% below 2019 levels. The 13% drop was an improvement from three weeks previously, and experts were puzzled at the time as to why or how hotel performance seemed to be improving during Russia’s invasion of Ukraine.
The performance eventually suffered a setback after leading hotel firms such as Accor, Hilton, Marriott, and IHG indicated that they would continue their operations hotels in Russia but would halt plans for future openings, development, and investments.
“While one week does not make a trend, we have to think that Russia/Ukraine concerns are a major factor in this deceleration,” Truist Securities analysts noted in this week’s report on the 27 percent drop.
Well before this STR data release, executives at several large hotel firms stated that the Ukraine war had little to no influence on their overall performance in Europe. While addressing at a JPMorgan conference earlier this month, Marriott CEO Anthony Capuano stated that the business has yet to see “significant cancellation traffic” into Western Europe.
“The forward bookings through the spring and summer look strong, and we expect to see more and more cross border travel,” Capuano added.
Europe was not the only market to experience a drop in recent hotel performance. Chinese hotel performance has also lagged behind that of the United States and Europe as a result of the country’s harsh crackdown on newly reported Covid cases, which has resulted in new waves of targeted lockdowns and travel restrictions.