Exclusive: Covid19 impact on global hotel constructions “not as bad as feared”
TOPHOTELPROJECTS analysis indicates that 3.7% of researched hotel projects have been cancelled while 11.1% are on hold due to the coronavirus pandemic.
Even as the hotel and wider hospitality industry continues to grapple with the effects of Covid19, TOPHOTELPROJECTS has put together exclusive insights into its impact on global hotel constructions.
TOPHOTELPROJECTS currently has information on 7,320 hotel construction projects worldwide with around 1.6 million rooms in its database, which is updated daily.
Through constant exchanges with hotel project decision-makers and intensive independent research, we are now able to present an extensive evaluation of the current situation.
Covid19 impact by key numbers
According to an analysis of hotel projects researched in the past few weeks, we can currently see the following trends:
- So far, 3.7% of global hotel projects have been cancelled. This figure has increased due to the coronavirus pandemic, but is still at a low level given the situation of the hotel industry worldwide. Already in 2019, the number of cancelled hotel projects had increased significantly.
- Extrapolated to the total number of projects, the number of cancelled projects would stand at approximately 271 projects in total, compared to around 180 projects that are usually cancelled.
- In addition, 11.1% of the researched projects are currently on hold, which, according to TOPHOTELPROJECTS, is a market indicator that has not changed significantly compared to previous years..
- The largest measurable effect of the corona pandemic can be found in the 13% of hotel projects that are temporarily delayed, mainly on the basis of regional or national restrictions imposed by the government and administrations. Extrapolated to all projects, this would mean there are currently 952 hotel constructions delayed due to Covid19.
TOPHOTELPROJECTS insight and analysis
“From numerous discussions with architects, designers and hotel brands, we know that most projects are currently ongoing, especially projects that are already beyond a certain stage of construction,” said Rolf W. Schmidt, founder and CEO of TOPHOTELPROJECTS.
“The statements so far made by leading representatives of international hotel brands also show the fundamental will to further drive hotel development. However, the situation is still very dynamic and the medium to long-term business prospects of the hotel industry remain subject to many question marks,” Schmidt added.
“Based on this available information and our analysis, we can at this point say that the effect of Covid19 on hotel constructions is not as bad as feared.”
The global hotel industry has always recovered relatively quickly from major crises, but the scale of the coronavirus crisis cannot be compared with anything else before. The impact is felt particularly hard on the tourism and hotel industry.
However, the economic importance of this industry — especially for economically weaker regions — would suggest that numerous countries with massive subsidies will avoid economic collapse, Schmidt said.
TOPHOTELPROJECTS will continue to closely analyse the impact of Covid19 on the hotel construction industry and publish its findings.
For more up-to-date information on hotel projects and key decision-makers around the world, visit the TOPHOTELPROJECTS database.
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