Among the noteworthy quotes from stories this week is Hilton CEO Chris Nassetta talking about a focus on building new brands.
QUOTE OF THE WEEK
“Nothing is a cure all but if you are looking for something additional to increase the potential return on your investment, think about how the general managers of your past investments have impacted your returns and how aligning their goals with yours may benefit everyone involved. Then look at how to make sure the position that has the most direct impact on your investment is aligned with you.” – David McCaslin, CapStar Advisors Read story
“Our focus… is on getting back to brand building the way we
do it, where we see legitimate white spaces that are opportunities to continue
to build our network and add to our growth. So, the entire organizational focus
is there… We’re not out bounty hunting to do acquisitions. So, the way you
should think about the 6% to 7% (NUG growth) is that it does not imply that
we’re going to go out and buy anything. That implies our existing and new
brands are going to deliver that kind of growth.” – Chris Nassetta, Hilton Read story
“We delivered another solid quarter growing our global
system by 4%, expanding our development pipeline by 5%, increasing our
ancillary revenues by 19%, and continuing to execute our strategy focused on
higher FeePAR segments and markets, which is driving growth in both domestic
and international royalty rates. Amid a softer domestic RevPAR environment, we
grew comparable adjusted EBITDA by 5% and comparable adjusted EPS by 11%...
With consistent development, royalty rate, and ancillary fee growth, we remain
very confident in our ability to create long-term value.” – Geoff Ballotti,
Wyndham Hotels & Resorts Read story
“I think a number of tertiary and secondary markets that
historically haven’t gotten $1,000 ADRs have opportunity. Some of the
non-coastal markets. We continue to explore places that have a rich and deep
history, that have an ability to provide that authentic regional experience.” –
Rob McIver, The Athens Group Read story
“This tool [Opportunity Zone investments] is great for
investors who are willing to be patient. It is not a tool for investors who are
looking for distributions in the short term or looking to exit the investment
in the short term.” – Natalie Mason, Capital Square Read story
“We greatly appreciate the continued support of our lending
partners through the upsizing and extension of our credit facility. Maintaining
low leverage and no debt maturities until 2028 increases our financial
flexibility and positions the company to take advantage of internal and
external capital allocation opportunities over the next several years.” – Briony
Quinn, DiamondRock Hospitality Co. Read
story
“Limited-service and midscale extended-stay hotels had
median per-room costs in the $167,000-169,000 range. The median cost for hotels
in the upscale extended-stay and select-service categories was around $265,000
per room and $223,000 per room, respectively. The cost to develop full-service
hotels is noticeably higher than select-service hotels, with a median cost of
$409,000 per room for full-service projects. Lastly, the median cost to develop
luxury hotels was recorded at over $1,057,000 per room. In summary, the median
hotel development cost across all surveyed properties was reported at $219,000
per room, similar to 2024’s survey, supporting the stabilization of
construction costs.” – HVS Read story
“Las Vegas is typically seasonally slower in the hotter
spring and summer months, and we continue to see the return of normal
seasonality after several years of elevated pent-up-demand spending.” – John DeCree,
CBRE Capital Advisors Read story