HNH Hospitality S.p.A. generated an overall revenue from directly managed hotels of 21.4 million Euros in the financial year closed on 31 October 2020, down 34.3% compared to 2019, when the period had been shortened to ten months due to the change in the financial year closing date. The figure should be considered provisional, as it is still potentially subject to minimum variations.
The financial year that has just ended was heavily conditioned by the ongoing global Covid19 pandemic, which has forced many hotels in the Group to close since March, for different periods and in some cases still today. The closings during the year have led to a 30.6% reduction in available rooms from the initial inventory.
A detailed analysis of the indicators reveals that the Average Daily Rate of the rooms dropped 15.1%, from Euro 120.30 in 2019 to Euro 102.40 in 2020. The Occupancy Rate, on the other hand, was hit harder by the current health crisis, dropping from 79.1% in 2019 to 46.7% in 2020.
At the end of 2019, HNH Hospitality had significantly broadened its offer with the opening of the DoubleTree by Hilton di Trieste and the acquisition of a hotel portfolio, including the Crowne Plaza Padova, the Crowne Plaza Venice East and the Best Western Air Venice. On a like-for-like basis, therefore without considering these properties, the total revenue stands at Euro 17.1 million, down by 47.5%.
However you look at it, HNH Hospitality performed better than the market. In fact, in the same period, STR Global found a 33.6% drop in occupancy (-51.9%) and a 19.3% drop in ADR in a sample of 686 hotels with 77,960 rooms. The overall loss in revenue for the Italian market in the same period was 61.2%.
“After a growth in revenue for directly managed hotels, which had consistently continued since 2009, in 2020 we had our first setback,” said the CEO of HNH Hospitality, Luca Boccato. “Covid19 was the cause. In such a delicate moment, we are consoled by having performed a bit better than the market. This proves that our model is resilient and will enable us to get out of this difficult situation sooner and better.” He continues: “We were reactive and efficient in immediately dealing with the emergency and cost controls. The budget we will approve in the next few weeks, although negative, will definitely be better than what we had forecast in march/April, at the beginning of the crisis. For 2021, we are confident that demand will increase.” Luca Boccato concludes: “Starting from the month of April, if the vaccines in the authorization phase prove to be effective, we forecast a progressive recovery. In 2021 there will be an evident positive sign compared to 2020. Instead, compared to 2019 we estimate about 20% less in turnover on a like-for-like basis, while overall we predict a growth between 10% and 20%, also due to extending our portfolio.”