bankinter | The major Spanish hotel chains are planning occupancy levels this Easter week beating those before the virus. They all coincide in that the outlook is optimistic, despite the uncertainty fueled by the conflict and escalating fuel prices. And in the majority of cases, they are convinced of exceeding or very close to pre-Covid levels During the Easter holidays.
In some cases, bookings are up 15% compared to 2019. Prices are also above pre-virus levels, but the full cost hike has still not impacted them, which could affect margins.
The opinion of the Bankinter analyst team:
Good news for the sector which is starting the season with good occupancy rates of between 70% and 80%. Our estimate is that tourism continue to recover in 2022, reaching 85% of pre-virus levels (vs 50% in 2021). He will benefit from the release of the request after the virus, despite the war in Ukraine and rising inflation.
As for the possible impact on margins, it will be less than in other sectors, given that the hotel industry is labor-intensive, the rise of which is significantly lower than that of inflation. Our recommendation for the sector is a BUY, but very cautiously in this context of greater uncertainty. Focus on companies like Meliá Hotels (MEL), AirBNB and Booking.