Hospitality Sector Current Dynamics

24 Jul, 2020
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  • The expected occupancies for July are up on the back of domestic tourism. From current bookings, the forward occupancies for large hotels in Tbilisi stand at 4%, at 13% for seaside, 16% for other regions and 28% for Kakheti
  • In smaller hotels, Kakheti leads the grid with 22%. Followed by 13% in seaside resorts and 10% for other regions
  • Starting from August, most of the bookings are made by foreigners, pre-COVID. With continuous border closures, these bookings are expected to be canceled, some replaced by new bookings by local visitors
  • Larger hotels offer more sizeable ADR discounts (ranging 30-45% for different regions), however as a single category, the small seaside hotels offer the highest discounts averaging at -50% YoY
  • With the current ADR discounts at hand, the importance of retaining other revenues rises. For last 30 days, income from bars & restaurants as well as other revenues of hotels displayed only -60% YoY decline, showing a faster recovery
  • The recovery is more visible in regions (-68%), close to Tbilisi, or in popular summer destinations. As for Tbilisi, the spending here is close to zero (-96%)
  • Hotel Average Daily Rate (ADR) in USD, average occupancy and Average Revenue Per Available Room (RevPAR) are expected to decrease by -30%, -80% and -85% YOY in 2020, respectively
  • Occupancy is expected to recover in 2022 to 2019 levels while price is expected to remain c. 0-5% lower, compared to 2019
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