Germán Morales Hotels chain reports high occupancy levels
The chain analyzes growth alternatives and new formats within the hospitality industry
The reactivation of the hotel sector is going steadily, with better occupancy results, which in the case of the Germán Morales Hotels chain, reaches 74% during 2022, as well as a process of recovering rates compared to 2019, although the Demand conditions have not allowed reaching the full ranges of the pre-pandemic.
Alejandro Morales, Executive Vice President of the Germán Morales Hotels chain (GMH), said that the behavior of the indicators in the company is similar to the trend registered by the industry, with a gradual recovery of rates that show an average increase of 28, 46%.
GMH operates hotels under the bh, bs, be and EK brands, with 11 hotels in Bogotá, Medellín, Barranquilla and Santa Marta.
According to the results of the market dynamics so far this year, Morales explained that rents have been recovered, said that the increase in demand allows rates to be raised gradually and that an element that also affects is the devaluation of the peso against the dollar, a factor that influences Colombia to become a very interesting destination and very accessible values.
For the director of the GMH chain, the devaluation of the peso also benefits national demand, "because going abroad is increasingly difficult with a dollar at levels of $4,300, making local destinations the main options when going out." That is why Colombia, understanding this advantage, "has developed products such as health tourism, commerce, training, gastronomy, among others," he assured.
In the tourism sector, as in the entire country, there are some factors that cause concern such as inflation due to the increase in costs and the minimum wage decreed by the Government for 2023.
In that sense, Morales said, air fares could also be affected and a low-cost airline could eventually disappear, reducing the supply of seats and thus “giving way to fares continuing to increase, already very high at the national, especially.
Other elements that generate concern, according to the Executive Vice President of GMH, is "the war in Ukraine, a possible economic recession, which will directly affect the countries that generate tourist demand for Colombia."
The hotel manager referred to a point that the hotel industry is looking forward to, which “is the VAT exemption for the sector, a measure implemented by the previous government, since this benefit will end on December 31, 2022 and we will once again be subject to of VAT from January 2023, which will make hotel services more expensive by 19%”.
He assures that before the start of the pandemic, the hotel group had been trying to implement some adjustments in the scope of the service, "seeking to reduce operating costs, but in general they are maintained in order to offer guests a standard equal to the one we have handled in our operations. We are more efficient, always working to provide our guests with a great experience and service in our hotels.”
He also announced that alternatives for growth and new formats within the hospitality industry are being analyzed, although the decisions that the Government and the Congress of the Republic will adopt with the tax reform are awaited.