LONDON—Magnuson Hotels released results for Q1 2020, the first full operating quarter affected by COVID-19.
“We’re proud to report sustainable Q1 2020 results for Magnuson Hotels and our affiliates,” said Thomas Magnuson, CEO.
Magnuson sustained a portfolio-wide occupancy reduction of only 0.4%, against an industry-wide fall of 15% across the U.S., a factor of almost 30 to 1. Magnuson also withstood a $1.00 loss in ADR (average daily room rate) compared to the U.S. average of -$5.14. Magnuson also sustained a 5.84% reduction in RevPAR.
The company also noted that because its portfolio is widely dispersed across U.S. secondary, tertiary, rural and highway markets, many areas have been less impacted than primary markets dependent upon leisure, corporate and international.
Magnuson’s midscale business segment moved to a 100% focus on serving essential services workers across secondary tertiary, rural and highways markets of the U.S. Customer groups staying in Magnuson Hotels include blue collar, construction, transportation, truckers, medical, government and student housing.
Exterior-corridor properties are performing strongly as guests can drive up to their rooms, eliminating interaction with other guests, using elevators or passing through lobbies, the company reports.
According to Adnan Malik, global head of technology operations, the company is starting to see reservations flow in starting from the month of June. “The interesting part to look into this factor is to see the month of October where we have seen one of the peak pickups for the entire year coming through,” he said.