A roundup of the latest news from across the global hotel industry.
BOLD progress: Wyndham Hotels & Resorts has reported that in just over
six months, its BOLD by Wyndham program (Black Owners and Lodging
Developers, established to promote Black hotel ownership) has signed deals for 18 hotels across the U.S.,
including 10 under its newly launched ECHO Suites Extended Stay by Wyndham
brand.
Indigo back to London: IHG Hotels & Resorts has signed its sixth Hotel Indigo
property in London. The 252-room Hotel Indigo London K West Shepherds
Bush has been signed in partnership with the Lancaster Landmark Hotel Co.,
which will refurbish the property due to open in Spring 2025. Hotel Indigo
boasts 41 open hotels with a further 16 in the planning stages.
Pebblebrook reports: Pebblebrook Hotel Trust reported $319.6 million in revenue in
4Q22 and funds from operations of $25.9 million, or 20 cents per share, in the
period. For the current quarter ending in March, Pebblebrook expects its
per-share funds from operations to range from 6 cents to 10 cents. The 1Q23
outlook also stated an expected net loss of $43.6-48.6 million with RevPAR increases
versus 2022 of 15-18%. Adjusted EBITDA guidance for 1Q23 of $46.5-$51.5 million
includes $4.5-$6.5 million of renovation disruption and $7.2 million of
preliminary business interruption proceeds. Same-property RevPAR for 1Q23 (vs.
2019) guides at -8.5% to -6.1%. Pebblebrook also announced $83 million of
common shares have been repurchased since November 2022 and that more
dispositions are in the offing. R.W. Baird research wrote that a recent
industry report suggests Hotel Colonnade Coral Gables in Florida could soon be
sold for $63 million, which would be ~2% below Baird’s valuation estimate.
Pebblebrook has also announced the close on the sale of the 151-room The
Heathman Hotel in Portland, Oregon for $45 million.
Apple REIT 4Q: Apple Hospitality REIT reported 4Q22 earnings, achieving an
improvement in RevPAR of approximately 7% for 4Q22 and 3% for all of 2022, with
ADR growth of approximately 12% and 9%, respectively. Occupancy was down
approximately 4% and 6% for the fourth quarter and full year 2022 as compared
to the same periods of 2019. Based on preliminary results for 1Q23, occupancy
was approximately 64%, up 13% YOY and down 4% vs. January 2019. The first
quarter showed ADR growth of approximately 10% compared to January 2022 and 7%
compared to January 2019. Apple Hospitality achieved comparable hotels adjusted
Hotel EBITDA of approximately $102 million for the fourth quarter 2022 and $461
million for the full year 2022, improvements of approximately 18% and 42% as
compared to the fourth quarter and full year 2021, respectively, and
improvements of approximately 7% and 0.5% as compared to the fourth quarter and
full year 2019, respectively. For 2023, the company’s guidance forecasts adjusted
EBITDA of $420-$457 million. Forecast for RevPAR (comparable; vs. 2022): 3%-7%;
hotel EBITDA margins (comparable margins in 2022 were 36.8%); total expense
growth 5.6%-7.6%.
Sunstone earnings: Sunstone Hotel Investors 4Q22 earnings beat on slightly better
margins, $10 million of business interruption insurance proceeds, wrote R.W.
Baird analysts. Looking ahead, 1Q23 guidance includes adjusted FFO/share of
$0.16-$0.18 and adjusted EBITDA of $51-$55 million. Sunstone also said it expects
$16-$18 million of renovation displacement in 2023 (on $130-$150 million of
capex spending). For January 2023, RevPAR was +0.4% with ADR +20% (vs. 2019; 15
hotels). For 4Q22, Sunstone reported adjusted FFO/share of $0.26 and adjusted EBITDA
of $68.8 million, both beating Street estimates.