A roundup of the latest news from around the hotel world.
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
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
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