Hoteliers always talk about the need for feet on the ground when developing and operating in markets around the world. Even during a pandemic, hotel companies continued those efforts.

Throughout 2021, global hoteliers expressed frustration at varying lockdowns and border closings followed by hope when green shoots of demand recovery appeared. But the omicron variant of COVID-19 and renewed travel restrictions and have once again put hoteliers on the back foot.

Here are some highlights of Hotel News Now's coverage of the issues that prevailed in global hotel markets throughout 2021.

A prolonged shutdown of hotels in India forced workers to find jobs elsewhere, creating a labor struggle as hotel demand ramps back up, particularly at luxury hotels where traditionally there has been a high ratio of staff to guests.

Satish Kumar, senior director of talent and culture, India and South Asia, Accor, said leadership in crisis was a focus for his company throughout the year.

“I’d say our holistic approach towards crisis management speaks a lot about how we cater to not just our guests but also our employees. We strive to maintain an honest relationship," he said.

The “Sandbox” program in Phuket, Thailand, allows international travelers to visit Thailand without quarantining, which hoteliers hope is the beginning of a sustainable path to recovery.

Tim Sargeant, group director of marketing at The Pavilions Hotels & Resorts, said his company spent more time trying to reach new guest demographics.

“During lockdown times, we spent a lot of time on PR and creating exposure to different demographics and segments. This is positive to see that the work we did on this has helped us gain exposure to new markets and guests," he said.

Portugal’s removal from the U.K.’s ‘Green List’ resulted in disappointment, frustration and uncertainty for hoteliers, but longer-term signs point to strong appetite from hotel investors.

Gonçalo Garcia, head of hospitality for Portugal at Cushman & Wakefield said investors view hotels a bit differently with new perspective from the pandemic.

“Investors still believe in tourism. The fundamentals have not changed. But their risk perspective is different," Garcia said. "We saw from investors an adjustment on price expectations after the first lockdown, which wasn’t balanced on the selling side. Over the past 12 months the gap has been adjusting, but it’s still wide enough to mean transactions generally aren’t happening."

The Spanish hotel industry has been rocked by the pandemic, with both investors and developers placing projects on hold. But a fast vaccination rollout, the reintroduction of travel incentives for retirees and the reopening of travel from the U.K., Germany and other feeder markets are making hoteliers bullish again.

Ivar Yuste, partner, PHG Hotels & Resorts, said domestic travel demand has boosted Spain's secondary markets.

“Even secondary markets of smaller cities are doing well with high numbers of Spanish guests, as for a long time they’ve had no place else to go because the internal regional borders were closed until early May," Yuste said.

Singaporean and international hotel developers and owners are not allowing the pandemic to put a dent in their vision of Singapore’s hospitality future, which they say must exceed guest demand for a greener, kinder experience.

Kwee Wei-Lin, president of the Singapore Hotel Association and head of hotels at Pontiac Land Group, said without a steady stream of inbound international guests, Singapore's hotel supply is at risk of being oversupplied.

“It will take time for visitor arrivals to return to a meaningful level. Without healthy visitor arrivals, there is a risk of excess room inventory," she said.

Australia and New Zealand, which for much of the pandemic have been self-isolating, finally are reopening to international tourists, but in the short term, hoteliers know they need to be creative to secure demand that remains almost all domestic.

Dave Baswal, managing director of Australia and New Zealand at Ovolo Hotels, said he's seen some clear signs of recovery.

“Earlier in the year between lockdowns, there was good spend happening. Once domestic is open fully, I think it’s quite sustainable in Australia for businesses to survive on their own," he said.

In May, France began a three-month exit from lockdown with the country’s hotel industry beleaguered, especially in higher-priced segments.

Pierre-Frédéric Roulot, CEO, Louvre Hotels, said operating a luxury hotel at lower occupancy is often more of a cash burn than operating hotels in lower price segments.

“The hotel business is one of overhead costs. So, the difference between being just a little open or fully booked is really a big one, because we still need pretty much the same number of staff to operate it,” he said.

Having seemingly limited the spread of COVID-19, Egypt has managed to achieve noticeable improvements in domestic hotel performance indicators, raising hopes that neighboring countries could follow.

Leila Ben-Gacem, owner of the Dar Ben-Gacem Hotel in Tunisia, said domestic travel in the country is growing.

“I am optimistic for next year as there are many initiatives in the field of tourism diversification development. There is better attention to small tourism lodging, but also booking windows are much smaller, stays are longer and guests are more willing to adventure in small local restaurants or public transportation,” Ben-Gacem said.

The return of Russian and German tourists secured a good summer season for the Turkish hospitality industry, and the long-awaited return of Brits promises to make it even better.

Fırat Balbozan, executive of sales and marketing at Bellis Deluxe Hotel, said hotel performance isn't back to the peak months of 2019, but it's improving.

“Of course, performance is not like in 2019, but it’s great and getting better. Every hotel that opened its doors to the guest made a big profit. I can easily say that the 2021 summer was like there wasn’t any pandemic," Balbozan said.

In May, Moscow achieved the highest average occupancy rate among European capitals, but rates are still lower than during the pre-pandemic era.

Galina Soldatova, commercial director, Marco Polo Presnja Hotel in Moscow, said although the rise in domestic Russian demand has been welcome, domestic guests aren't willing to pay as high of rates as international visitors.

“Our country is huge. Domestic tourism gives a good flow of guests, but the payment ability of compatriots is much lower than that of the guests from abroad," Soldatova said.

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