Latest HITs: Earnings reports, NYC snapshot, Element milepost

Steady growth at Wyndham. Wyndham Hotels & Resorts reported strong fourth quarter and full-year 2022 earnings on Wednesday delivering adjusted EBITDA that exceeded its outlook, generating significant free cash flow and returning a record $561 million to shareholders for the full-year through $445 million of share repurchases and a quarterly cash dividend of $0.32 per share, representing 7% of its market cap. The Board authorized a 9% increase of quarterly cash dividend to $0.35 per share beginning with the dividend expected to be declared in first quarter 2023. Global RevPAR grew 15% in the fourth quarter and 20% for the full-year compared to 2021 and exceeded 2019 levels by 16% in the fourth quarter and 7% for the full-year. System-wide net room growth was 4%, including 1% of growth in the U.S. and 9% of growth internationally. U.S. development signings increased 35% for the full year, including 170 contracts awarded for ECHO Suites, its new extended-stay brand. Wyndham grew its pipeline 12% year-over-year to a record-level 219,000 rooms. For 2023, Wyndham expects net rooms growth of 2% to 4% and Y/Y global RevPAR growth of 4% to 6%, or 6% to 8% above 2019 levels.

Choice beats in Q4. Choice Hotels International reported $1.26 in earnings per share, exceeding estimates by $0.20, while also beating revenue expectations by more than $5 million, coming in at $361.98 million. Domestic RevPAR came in 20.4% above pre-pandemic levels. Adjusted EBITDA for 2022 surpassed 2019 levels by 28%. The Q4 earnings beat was driven by other revenues (+$5 million) and Radisson earnings (+$3 million). “Our distinct strategy of growing our brand portfolio with hotels that generate higher royalties per unit is driving impressive results,” stated Choice CEO Pat Pacious. Choice also stated Domestic RevPAR for 2023 is expected to increase approximately 2% compared to full-year 2022. ; Adjusted EBITDA for 2023 is forecasted to be $520-$540 million (vs. Street $516 million), which includes $60 million of earnings contribution from Radisson. However, Radisson experienced net deletions with rooms ~6% lower versus when the transaction was announced in 1Q22. At year-end, the total domestic pipeline had ~100,000 rooms, +2% versus 3Q22; the Radisson pipeline declined by three hotels and ~600 rooms.

Airbnb rebounding. Airbnb reported 4Q22 earning on Tuesday with solid results on bookings and a positive outlook ahead. Cross-border bookings increased 49% Y/Y, representing 44% of the total, but still lagging pre-pandemic mix (47% in 4Q19). Adjusted EBITDA for the quarter of $506 million (27% margin) was significantly above Street expectations. Airbnb reported 4Q22 revenues of $1.9 billion (+24% Y/Y). Earnings per share were 48 cents vs. 25 cents expected by analysts. For 2023, Airbnb plans to upgrade services by focusing on displaying all-in pricing, prioritizing search results based on value to guests, and rolling out more pricing tools for hosts. Supply grew to 6.6 million active listings, +16% Y/Y, with an increase of 900k listings since 2021. . The company said revenue for 1Q23 will be between $1.75 billion and $1.82 billion, above the $1.69 billion expected by analysts polled by Refinitiv.

NYC Q4 snapshot. PwC’s Manhattan Lodging Overview for 4Q22 showed Increases in occupancy, ADR and RevPAR. Q4 RevPAR increased 54.2 Y/Y (best performance in upper upscale) with the strongest gains in October – up 85.8%. Year-over-year occupancy were highest in October – up 32.1% with overall occupancy for the quarter at 82.7% and ADR at $376.37. Manhattan RevPAR jumped from $201.90 in Q4 2021 to $311.23 in Q4 2022. PwC Managing Director Warren Marr said with supply growth expected to be muted over the next several years, and a sluggish return of the business traveler continuing to place downward pressure on occupancy levels, hotel operators may begin to see heightened flow through to their bottom lines.

Curio Collection grows in Spain. Hilton has signed a franchise deal with Scipion Real Estate and management company Panoram Hotel Management to open in 2024 the 72-room Palacio de Godoy Cáceres, Curio Collection by Hilton in a historic building in Spain. The property will join 18 trading Hilton hotels in Spain.

Dalata adds in London. Dublin, Ireland-based Dalata Hotel Group has acquired from Furadino Holdings Ltd. for £44.3 million a newly refurbished hotel site in London for what will become its first Maldron-branded hotel due to open this summer. The purchase of the asset with a gross value of £45.1 million will be financed via existing cash and banking facilities. The hotel has 192 rooms, as well as a restaurant and bar. Prior to opening, Dalata will invest in excess of £2 million to enhance the property, which has expected stabilized annual earnings of £4 million. It will be Dalata's 18th Maldron hotel in the UK.

Western Europe’s comeback. The World Travel & Tourism Council has revealed strong signs of recovery of the economic impact from Travel & Tourism in the powerhouse cities of Western Europe. Paris has shown the strongest recovery of the five capital cities with the other four being 18% to 30% below 2019. In Paris, the sector GDP contribution was $38 billion in 2019 but in 2022 it recovered to just 6% below pre-pandemic levels at an estimated $35.7 billion. Rome is showing the slowest recovery – 30% below 2019 levels with a sector contribution of almost $7 billion. In 2020, job numbers in the top five capitals fell by 41% to just over 580,000. The following year, job numbers rose by 13% to 654,000, and last year job numbers rose again by a further 23% to reach 807,000, just 17% below the combined total in 2019.

Radisson in Nigeria. Radisson Hotel Group will add Radisson Collection luxury/lifestyle hotel to Abuja, Nigeria, partnering with developer Avalon Intercontinental Nigeria Ltd. The 249-room Radisson Collection Hotel & Conference Center, Abuja Nigeria marks the group’s ninth hotel and third Radisson Collection in the country as it tracks toward 15 hotels in Nigeria by 2025.

Element milestone. Marriott International’s Element Hotels brand has reached a milestone 100th property, opening as part of a dual-branded site with Le Meridien Hotels & Resorts in downtown Salt Lake City, Utah. Utah-based developers The Ritchie Group and Garn Development opened the 144-room Le Meridien Salt Lake City Downtown and the 126-room Element Salt Lake City Downtown (seen above), which are being managed by Azul Hospitality Group, San Diego. The properties are located in The West Quarter, a new mixed-used development which connects two halves of downtown with a mid-block pedestrian road called Quarter Row.