Wyndham, Accor, Pebblebrook report improved earnings

57% RevPAR growth for Accor. First quarter revenue and RevPAR growth continue to come in stronger than anticipated. Accor reported 1Q23 earnings on Thursday with year-over-year RevPAR for the quarter up a whopping 57% and up 19% over 1Q19. It also said it expects double digit RevPAR growth for the year (10% to 20%), citing the end of China’s zero-COVID as the accelerator. Accor opened 36 hotels, for around 4,400 rooms, and has thus achieved net network growth of 2.9% in the last 12 months. At end of 1Q, the group had a hotel portfolio of 800,321 rooms (5,444 hotels) and a pipeline of around 214,000 rooms (1,241 hotels). Accor reported 1Q23 revenue of €1,139 million, up 54% like-for-like versus 1Q22. By activity, this growth breaks down into a 71% increase for management and franchise, a 60% increase for services to owners, and a 37% increase for hotel assets and other. By division (excluding Holding & Intercos), €681 million of revenue was generated by the Premium, Midscale and Economy divisions, up 62% versus last year, and €477 million by Luxury & Lifestyle, up 52% versus 1Q22. The management and franchise business generated revenue of €268 million, up 71% versus 1Q22.

ECHO drives Wyndham pipeline. Wyndham Hotels & Resorts reported a strong 1Q23 delivering $313 million of revenues and $147 million of adjusted EBITDA, which beat the Street expectations. As a result, Wyndham raised its top-line and bottom-line full-year 2023. It increased the outlook for fee-related and other revenues by $4 million, which still rounds to $1.38 billion to $1.41 billion. Adjusted EBITDA increased $4 million as well and is now projected to be $654 million to $664 million. Global RevPAR grew 12% in the first quarter compared to 2022 and 11% compared to 2019. System-wide net room growth of 4%, including 1% growth in the U.S. Wyndham’s development pipeline grew 11% year-over-year to a record-level 226,000 rooms. Signings increased 7% year-over-year and 35 more new construction projects for ECHO Suites were announced, bringing the total number of contracts awarded to 205 since launch in March 2022.

Pebblebrook selling 2 assets. Driven by increasing strength in urban markets, Pebblebrook Hotel Trust topped the Street expectation for 1Q23 with funds from operations of $22.4 million, or 18 cents per share. The company said it had a loss of $33.9 million, or 27 cents per share. The Bethesda, Maryland-based REIT posted revenue of $305.7, also topping Street estimates. Pebblebrook said it is under contract to sell the 189-room Hotel Monaco Seattle for $63.3 million ($335,000/key) and the 125-room Hotel Vintage Seattle for $33.7 million ($270,000/key). Pebblebrook expects its per-share funds from operations to range from 52 cents to 57 cents and is guiding $107.5-$113 million of Adjusted EBITDA in 2Q23.