Hotels toast May reopenings as occupancy plummets

The UK’s hotel chains are preparing for reopening and expansion, after occupancy dived to new lows this year. PPHE Hotel Group reported occupancy of just 7.1% in the first quarter, driving revenue to £5.3m in the three months to March 31. This is a 92.5% decline from 2020 levels. The group’s chief executive Boris Ivesha, said going into Q2, he was “encouraged by the early domestic demand from the leisure and meetings and events segments”. PPHE has begun training team members and is rolling out contactless services in anticipation of the May 17 UK reopening date. Ivesha said: “As restrictions are eased across our other operating markets in Europe, we will capitalise on consumer demand and other potential opportunities, underpinned by our strong track record, well-invested properties, and unique approach to drive long-term success.” Hotel chain Dalata has bolstered occupancy during 2021 through providing rooms to esssential services. For the first three months of the year, Dalata reported UK occupancy at 13%, with Dublin at 14% and the rest of Ireland at 16%. The drop in revenue has seen an EBITDA loss of €3.6m (£3.1m) in the first quarter. Chairman John Hennessy said he was hopeful of a return to business in May in line with government timetables, but highlighted uncertainty in other markets. Hennsey said: “The near-term outlook in Ireland is more uncertain but we remain encouraged by the acceleration of the vaccine roll-out. The Irish government has yet to announce when hotels can reopen to non-essential customers. We will reopen to all guests as soon as restrictions allow.” Dalata is progressing a pipeline of 3,300 rooms and expects to open three new buildings this year, and four in the first half of next year. To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette Photo by Dalata