Hotel brands in the United Arab Emirates and the Maldives dominate revenue; spend per stay and average length of stay exceed pre-pandemic levels, and domestic stays rebound to 2019 volumes
Based in the United Arab Emirates Global Hotel Alliance (GHA), the world’s largest alliance of independent hotel brands, reported a strong recovery in room revenue in the first quarter, showing increased momentum for the travel recovery.
The United Arab Emirates and the Maldives led revenue in the first three months of the year, with GHA hotel brand properties in these markets generating an average revenue per room (ARR) per stay of $1,270 and $8,530 USD respectively, against a global average of USD 670.
Ten hotels out of more than 500 worldwide GHA DISCOVERY, GHA’s award-winning loyalty program, accounted for one-third of total room revenue in the first quarter. Six of these 10 were located in Dubai and the Maldives, with their room revenues accounting for 14.4% and 8% of GHA DISCOVERY’s total room revenues respectively for the period.
Overall, global room revenues in the first quarter of 2022 exceeded 60% of the levels reached in 2019, before the pandemic. Meanwhile, total revenue (room and non-room) in the first quarter of 2022 increased by 76% compared to the first quarter of 2021, driven by both an increase in room nights sold (up 34%) and by expenses. much higher averages per night (up 32%).
These impressive results were achieved despite continuing constraints on international travel. Domestic stays in the first three months of the year where a GHA DISCOVERY member stayed at a hotel in their own country of residence rebounded to 2019 levels, while international stays only recovered 50% of 2019 levels, reflecting continued travel restrictions in many markets.
Accelerating demand for luxury leisure travel, after two years of pandemic-related restrictions, has generated dramatic increases in spending, with GHA DISCOVERY hotels achieving average daily rates (ADRs) 78% higher than those in the first quarter of 2021 and by 14% in the first quarter of 2019.
“What is clear from the first quarter results is that travel is enjoying an encouraging recovery,” said Chris Hartley, CEO of GHA. “After two years of travel restrictions and uncertainty, pent-up leisure travel demand has been unleashed and the GHA hotel brands, with stunning properties located in some of the world’s most popular and travel-friendly leisure destinations business in the world, benefit from the rebound. ”
Another major contributing factor to GHA’s strong first quarter performance was the December relaunch of GHA DISCOVERY, a loyalty program redesigned to meet the needs of today’s travelers with three concepts: DISCOVERY Dollars (D$), the industry’s first digital rewards currency, where members earn and spend D$ at any property in the GHA DISCOVERY portfolio; Recognition, with more tiers, enhanced benefits and first-stay rewards at a wide selection of properties, including some of the world’s most luxurious hotels, resorts and palaces; and Live Local, featuring “around the corner” lifestyle experiences, deals and promotions – from spa days to dining to weekend getaways and more.
During the first quarter, multi-brand revenue – representing stays for members who register with one GHA brand and stay with another – was nearly 2.5 times higher than the same period in 2021. best-performing hotels, these multi-brand clients increased occupancy by 8% and the GHA DISCOVERY program generated more than half of total nights sold.
Some 61% of D$ redemptions in the first quarter were made on multi-brand stays, proving that the new currency encourages members to try new brands. At the same time, with members increasing their spending and hotel brands reporting higher than normal ADRs, the number of D$ issued has skyrocketed.
“This is great news for our hotel brands, GHA DISCOVERY members and the travel and tourism economy,” said Hartley. “With more D$ in their pockets, members, we are building on the momentum of the first quarter by driving spring and summer break activity and aiding the ongoing recovery for our member brands.”
GHA offers a central website and app for GHA DISCOVERY members as an extension of the member brand channels and saw strong distribution growth in the first quarter, with direct bookings up 30% and revenue up 62% compared to 2021.
“GHA provides a solution for independent brands that helps them compete with larger programs without losing their identity or control, while promoting channel shift to more direct and profitable activities, all at a low variable cost linked to performance,” concludes Harley.
With South Africa’s leading hotel group, Sun International, joining GHA in December 2021 with 15 distinct properties and the integration of NH Hotel Group in June, the alliance’s global portfolio expands to over 40 brands with more than 800 properties in 100 countries, and GHA DISCOVERY to have more than 20 million members by mid-2022.
About Global Hotel Alliance (GHA)
Global Hotel Alliance (GHA) brings together a unique collection of independent hotel brands with GHA DISCOVERY, a multi-brand loyalty program built on a shared technology platform. By joining GHA, brands expand their global reach, generate additional revenue and reduce reliance on third-party channels, while maintaining management independence and individual positioning. GHA represents a collection of 35 brands with more than 500 hotels in 85 countries serving 11 million members. The award-winning GHA DISCOVERY program generates approximately $2 billion in revenue and more than eight million room nights annually. GHA brands currently include Anantara, Araiya, Avani, Campbell Gray, Capella, Corinthia, Discovery Destinations, Divani, Doyle, Elewana, Fauchon, GLO, JA Resorts, Kempinski, Leela, Lungarno, Marco Polo, Mysk, Niccolo, Nikki Beach , NUO , Oaks, Outrigger, Pan Pacific, PARKROYAL COLLECTION, PARKROYAL, Patina, The Residence by Cenizaro, Shaza, Sukhothai, Sun International, Tivoli, Ultratravel Collection and Viceroy. For more information, visit www.globalhotelalliance.com.
About GHA DISCOVERY
Launched in 2010, GHA DISCOVERY is the world’s largest loyalty program for independent hotel brands, with more than 500 hotels, resorts and palaces across 35 brands. Members enjoy VIP recognition, thoughtful benefits and generous rewards at home or away. Recently, the program has evolved to include an additional tier and flexible paths to upgrade to nights/stays, qualifying purchases, or number of brands stayed, making it easier and faster for members to achieve membership status. elite. Unlike more traditional programs, GHA DISCOVERY does not require members to count points for their next upgrade. Instead, members earn and spend DISCOVERY dollars (D$), an exclusive rewards currency. They also enjoy member-only experiences hosted by each hotel and have access to properties close to home, without a stay, through local members-only offers.