Analysis of the difference in occupancy and profitability in international brand hotels before and after the pandemic caused by COVID-19

Abstract

Adjara is a distinguished tourist region in Georgia. Based on statistical data, the growth of tourists and visitors in the last decade is characterized by high rates. However, both in the world and in Adjara, the COVID-19 pandemic caused significant damage to the tourism sector, drastically reducing the number of visitors. Based on the fact that Batumi has become a place of operation for international branded hotels, it attracts visitors from different countries. The Russia-Ukraine war had a certain influence on the recovery of tourism, in particular, the exchange rate of the national currency strengthened, real estate prices increased, and apartment hotels were distinctly busy. The aim of this research was to study the occupancy and profitability indicators of branded hotels operating in Adjara before and after the pandemic (2019 and 2022). In this study, the authors have identified difference in hotel occupancy and profit indicators in the corresponding months of 2019-2022; characterized differences in financial indicators concerning national and foreign currency; found out is there a disproportionate change in occupancy and profit in surveyed hotels. Qualitative and quantitative research methods were used during the research. As a result of the survey, significant changes in hotel occupancy and profit ratio were revealed, which are related to exchange rate changes and other important factors.