COVID-19 came and hit like a storm for various business industries, especially the hospitality industry. Traditionally, it accounts for 10 percent of the worldwide GDP. However; it was down to 70 percent during 2020.
Lockdowns, travel restrictions, and fear have caused hotel occupancy rates to plummet, especially in Europe and Israel. But despite the struggling of the hotel industry, the values have been slightly improving in this pandemic.
The performance in the hotel industry for 2021 has improved compared to 2020. Summer vacations, health passports, and vaccinations increased the European hotel occupancy rate as it climbed by 16.8 points from 2020.
Moreover, the occupancy rate in the summer of 2021 has been significantly improved. Spain, France, and Greece have great results due to the flock of domestic occupants. On the other hand, the Netherlands, Portugal, Hungary, and Belgium have hotel revenues down by more than -75% compared to the pre-COVID standards. In summary, Europe has never been close to its pre-COVID hotel revenues.
In terms of recovery, people have different opinions on which country will recover the fastest. According to a recent report, 35% of respondents believe that the German market will recover quickly, while 30% believe in the Spain hospitality industry to thrive. 31% of hotel operators chose Germany, while 25% pointed to Italy, Greece, and Spain.
When investors were interviewed, 69% of them expressed their confidence in the UK market, while the rest chose Greece and Germany. This value holds to the report by STR, as it stated that the UK hospitality sector has the highest recovery across Europe.
Indeed, there are different perspectives on which country will recover the most. Many people believe in the German hospitality market, while the Netherlands is still struggling to cope with COVID. However, the UK hospitality sector has recovered the most in Europe by actual figures alone.
On the other hand, Israel has a very slow start in the hotel industry since they do not allow international tourists to enter. This means hotels in Israel need to get used to accomodating the locals in contrast to catering to foreigners.
Tel Aviv, Jerusalem, and Jaffa’s hotels are down in this pandemic. On the other hand, Eilat has a better situation since the central resort town of the city is located on the Red Sea.
Furthermore, Israel has a long journey to take in the hotel industry before returning to pre-covid market levels. Despite more than a third of the country’s hotels remaining close, HVS Research suggests that 2021 and the succeeding years will improve its hospitality industry.
The figures shown for Europe and Israel show that recovery is possible. The statistics might be worse than the pre-COVID levels. However, it’s gradually recovering as time goes by.
In fact, the United Kingdom is among the top countries to vaccinate its citizens, and Israel is slowly vaccinating all residents. This could mean potential in the use of hotels during the vaccination. Also, both countries’ government regulations might ease allowing foreigners to come into the country. Therefore, these opportunities will boost the hotel industry in the future, especially for Africa-Israel Hotels operating in Israel and Europe.
Dayan family owns Africa-Israel Hotels (AFIHOTELS) since 2017, a hotel chain that specializes in hotel management and tourist sites in Israel and the rest of the world. The company holds the franchise to Crowne Plaza and Holiday Inn brands, which has hotels in Europe and Israel.
In Israel alone, AFI Hotels manages eight hotels in Israel under VERT Hotels. It also owns hotels in Eilat, which has a better hotel market situation than the rest of Israel. Despite the struggles of the hotel industry, the Dayan family is further expanding the scope of AFI Hotels in Europe and Israel.
Amir Dayan is an Israeli businessman, entrepreneur, and investor specializing in commercial real estate. He mainly manages the family’s real estate investments because of his in-depth industry knowledge, he currently lives in Amsterdam. Amir Dayan invested in quality and diverse portfolio that attracts potential investors.
Aside from investing in AFI Hotels, Amir Dayan is also a shareholder and beneficial owner of several companies such as Vivion S.a.r.l, Lianeo Real Estate, and Golden Capital.
