UAE-headquartered Global Hotel Alliance (GHA), the world’s largest alliance of independent hotel brands, announced its total room revenues for the first half of 2023 topped $1.2 bn. This represents a year-on-year increase of 122 percent.
According to GHA, travel-hungry Discovery loyalty program members are driving its growth. This segment is expected to reach the 25-million mark before the end of the year, the alliance said.
In a statement, the alliance said this growth trajectory began in November 2022, and continued until July this year. This performance reflects sustained demand for international stays across GHA’s portfolio of 800 hotels spanning 40 brands in 100 countries.
Revenue contribution
Thailand leads as the most popular destination in terms of revenue growth during the first six months of 2023. Spain, the UAE, the Maldives, and Italy are the next top destinations. Notably, the United States remains a vital feeder market for international stays, contributing significantly to room revenue.
Additionally, St. Lucia, the Maldives, the Seychelles, and Switzerland command the highest average daily rates (ADRs).
China’s travel market has made a remarkable comeback, with GHA Discovery members generating $40 mn in total hotel revenue. This marks a 62 percent increase compared to H1 2022 and a 4 percent increase compared to the same period in 2019.
The resurgence of Chinese travelers contributes to GHA’s overall revenue growth and showcases the alliance’s appeal in key Asian markets.
Cross-brand revenue
Cross-brand revenue across GHA’s portfolio has surged, reaching $135 mn in H1. This indicates that hotels are benefiting from incremental revenue as GHA Discovery members stay at one property and redeem their earned Discovery dollar (D$) at another.
Notably, 28 percent of D$ redemptions occurred during cross-brand stays, attracting new customers. Furthermore, members who redeemed D$ spent an average of 14 times the redemption amount during their stay.
To date, over $116 mn worth of D$ have been issued. Chinese and Singaporean members show the highest engagement in redeeming D$, indicating its appeal in markets where travel demand has rebounded post-pandemic.
In the first half of 2023, GHA added 21 new hotels to its portfolio, including several destination debuts for prominent GHA brands.
Promising outlook
Commenting on the GHA’s performance, chief executive Chris Hartley said, “Our strong H1 numbers reflect the huge demand for leisure travel and the slow but steady recovery of business travel. We are now entering a phase of sustained growth, buoyed by a unique multi-brand loyalty program that continues to grow its offering of new hotels and destinations.”
Looking ahead, GHA anticipates a positive outlook for the remainder of 2023. About 64 percent of member bookings are concentrated in key markets led by Australia, Singapore, China, Germany, and Thailand.
Additionally, GHA’s first hotels in Japan, Pan Pacific and Park Royal hotels in Tokyo, have already emerged as the most booked properties this year.
GHA anticipates a strong finish to 2023 in terms of revenue and membership growth. This optimism is fueled by record-breaking Q2 results, robust summer bookings, and the potential to tap into pent-up demand from key Asian markets.
