Pace of recovery shifts further out according to hotel sentiment survey

EU: The latest hotel sentiment survey from Deloitte reveals that 90 per cent of respondents believe that performance will not return to pre-Covid levels until 2023.

The survey, conducted between 24 February to 10 March 2021, is based on the responses of 101 senior figures in international hospitality. It marks the tenth survey conducted by Deloitte since March 2020.

71 per cent of respondents expect disruption to last beyond 2021 (an increase of 12 per cent compared to Oct 2020), however the majority of this group (47 per cent) believe this to last no longer than H2 2022.

Even though 90 per cent believe recovery will not return until 2023 and beyond, over half of this group (52 per cent) bet on 2023 as the year of recovery. 38 per cent expect recovery in 2024 and later – an increase of 18 percentage points since October 2020.

Regarding the current key priorities, 70 per cent have identified cash flow. Transactions and expansion, now ranked by 45 per cent of respondents as the second largest priority, has jumped by 10 percentage points from October 2020.

40 per cent still consider financing and lender considerations amongst their top priority, however this has shown the largest decrease since October 2020, down from 60 per cent.

Nearly half of the respondents are currently modifying their loan terms and deferring payments, whilst 38 per cent are considering reorganisation and restructuring.  

In terms of Government support, the number of respondents that are considering application for these schemes have halved since May 2020. As a result, the majority now expect the government to prioritise tax relief in the form of revenue, income and property taxes, followed by wage support. 

Expectations around distressed activity is largely centred on Spain, closely followed by the UK and Italy. 

Further details about Deloitte’s Hotel Sentiment Survey March 2021 can be found here. 

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