HOTEL profits in Thailand are continuing to tumble as properties in neighbouring countries start to recover, according to new data that will be presented next week at the South East Asia Hotel Investors’ Summit 2020.
Top executives from 62 companies and organisations based in Thailand, or with an office in the country, as well as 30 remote speakers, will gather to tackle the problems brought on by the deepest downturn faced by hoteliers across the region.
According to a report from Hotstats, the benchmarking company, Thailand’s hotel profits were wiped out in the first 10 months of 2020, as Gross Operating Profit Per Available Room (GOPPAR) fell from US$58 per available room to break-even.
The hardest hit market in the January-October 2020 period was Hong Kong, where GOPPAR slumped from US$150 to a loss of US$27.
Singapore fell from US$117 to US$34, as government schemes helped the city-state remain slightly profitable.
More worryingly for hoteliers in Thailand however, while most other markets started to recover during October 2020, the “Land of Smiles” saw a GOP loss of US$9 Per Available Room, down 121% compared to the same month in 2019.
A spokesman for SEAHIS2020, which will be held at the Hyatt Regency Bangkok Sukhumvit, from December 1-2, said that with widespread deployment of a vaccine about six months away and travel corridors being repeatedly postponed, “the regional hotel sector faces a bleak winter”.
“SEAHIS will see key stakeholders come together in person to discuss how the industry can return to profitability, and most importantly, start to rehire the thousands of workers who have sadly lost their livelihoods during the pandemic.”