According to STR’s September 2021 monthly P&L data release, the hotel sectors in seven important Asia Pacific cities reported profitability levels considerably below pre-pandemic levels, with only Beijing above 40% of 2019 comparative.
Following the success of its introduction in the United States, STR now provides monthly P&L data reporting in four global regions: Europe, the Middle East, Asia Pacific and the Americas.
The gross operating profit per available room (GOPPAR) in Beijing was US$29.91, which was 70% of the level in September 2019. Using the same time, Singapore (US$39.99) came in at 35%, while Hong Kong (US$6.22) came in at 10%. Sydney, Bali, Bangkok, and Tokyo were all in the red when it came to GOPPAR. Over the last several months, Tokyo has witnessed the greatest drop in profitability.
“In September 2021, just three of the region’s significant markets achieved positive profit conversion: Singapore, thanks to quarantine demand, and Beijing and Hong Kong, which have remained resilient despite the Delta variant epidemic,” said Jesper Palmqvist, STR’s Asia Pacific Area Director.
“Of course, Sydney has been constrained due to lockdowns, but with New South Wales reopening and allowing foreign tourists, the industry could soon revert to positive profitability, in contrast, Bali and Bangkok are further behind in the recovery cycle, with negative profit conversion rates of -55% and -44%, respectively.”