Latest HITs: Warner reopening Four Seasons; Salamander rebrands; franchisor pipelines

Warner finally reopening Four Seasons properties. Ty Warner Hotels and Resorts and Four Seasons Hotels and Resorts have been working together to prepare for the reopening of both the Four Seasons Resort The Biltmore Santa Barbara and Four Seasons Hotel New York. Both properties are expected to reopen in fall 2024. Renovations and enhancements are planned throughout. In preparation for reopening, recalling furloughed employees will be a priority. Furthermore, during its temporary closure the Coral Casino Beach and Cabana Club in Santa Barbara underwent a transformation and is scheduled to reopen in September 2023.

Salamander rebrands. Salamader Hotels & Resorts has rebranded as The Salamander Collection, marking the company’s 10th anniversary. Led by founder Sheila Johnson, the Salamander Collection owns and operates seven properties in the U.S. and Caribbean. Last year, the company added another branded property in the nation’s capital: Salamander Washington D.C., while this summer has seen the completion of the first homes in its inaugural branded residential project: Residences at Salamander Middleburg, Virginia.

Airbnb beats with ADR. Better than expected ADR drove a 2Q23 earnings beat for Airbnb. It reported revenues of $2.5 billion (+18% Y/Y), and adjusted EBITDA of $819 million (33% margin). ADR was up 1.3% to $67, which offset a slight miss in nights booked. International markets are recovering as EMEA and LATAM nights both grew double-digits Y/Y, indicating regional platform strength and management's increased focus on cross-border and emerging market opportunities, wrote R.W. Baird analysts. Cross-border nights grew 16% Y/Y, but still lag pre-pandemic mix. Additionally, high density (urban) nights continue to recover, increasing 13% Y/Y, and long-term stay mix was flat Q/Q at 18% of bookings. Total active listings grew to 7 million, up 19% Y/Y; listings grew across all markets and listing types, with APAC and LATAM growing the fastest.

GOPPAR falls in June. U.S. hotel gross operating profit per available room (GOPPAR) fell year over year for a second consecutive month in June, according to CoStar data. GOPPAR was US$91.37 (-1.4% YOY); TRevPAR was US$237.12 (+4.8%); EBITDA PAR: US$66.78 (-5.6%); and labor costs were US$75.48 (+13.4%), growing nearly three times the rate of total revenue. “That increase, tied with higher growth in other expense types, caused a profit decline from last June,” said Raquel Ortiz, STR’s director of financial performance. “Despite the year-over-year decline, the GOPPAR level was improved from May, and with cooling inflation, real GOPPAR and TRevPAR were up month over month for the first time since March.”

Minor adds in China. Minor Hotels and its joint venture partner in China, Funyard Minor JV Co., have signed a deal for the 120-key Anantara Shaoxing Resort in northeastern Zhejiang Province in China. Perched on the slopes of Mount Kuaiji, the luxury resort developed in partnership with Shaoxing Lan Ruo Lake Real Estate Development Co. will be the first internationally branded resort in the city of Shaoxing when it opens in 2024.Anantara Shaoxing Resort will form the core of Taoyuanli Health and Wellness Town– an integrated mixed-use community featuring landscaped courtyards, playgrounds, world-class restaurants, organic supermarkets, communal dining, and comprehensive health and wellness facilities for all ages. Anantara Shaoxing Resort along with the recently announced Anantra Anji Resort will become the brand’s third and fourth properties in China.

US franchisor pipeline. In the second quarter of 2023, the franchise companies with the largest pipelines in the U.S. are Marriott International (Marriott) with 1,511 projects/181,632 rooms, Hilton Worldwide (Hilton) with record high project and room counts of 1,470 projects/164,848 rooms, and IHG Hotels & Resorts (IHG) with 811 projects/80,516 rooms, according to Lodging Econometrics. These three franchise companies comprise 68% of all projects in the U.S. hotel construction pipeline. The leading brands for each of these three companies are Home2 Suites by Hilton with record-highs of 565 projects/57,970 rooms, IHG’s Holiday Inn Express with 306 projects/28,756 rooms, and Marriott’s TownePlace Suites with all-time-high project and room counts of 345 projects/32,190 rooms. In the second quarter of 2023, LE recorded a record-high 1,085 conversion projects, accounting for 106,408 rooms. Of these conversion totals, Hilton leads with 142 conversion projects/17,468 rooms. Following Hilton, the franchise companies with the largest number of conversion projects are G6 Hospitality, Marriott, Best Western Hotels & Resorts, and IHG.