[Update] Hospitality sector performs well in the third quarter of 2022

14 min reading time

Published on 14 November 2022

Q3 2022 Accor & Hilton

After two rollercoaster years marked by the health crisis, the major hospitality groups seem to be back on the road to profitability as shown by the third quarter results of this year for Accor, Hilton, Marriott, Hyatt, Melia and many more.

The third quarter of 2022 confirms the upturn in business seen since the beginning of the year. For the second quarter in a row, Accor's RevPAR is above its 2019 level and now only Asia is performing below its pre-crisis level. While leisure customers were in the mix during the summer period, business customers made a comeback in September.

For the third quarter of 2022, the group recorded revenues of 1,149 million euros, up 83% on a like-for-like basis compared to the third quarter of 2021. The consolidation of Ennismore and the reopening of the Pullman Montparnasse contributed €14 million to the increase.

The Group's RevPAR increased by 14% overall in the third quarter of 2022 compared with the third quarter of 2019, confirming the clear improvement in business seen since the beginning of the year, with RevPAR above its 2019 level for the second consecutive quarter. Southern Europe posted a RevPAR 11% higher than the third quarter 2019 level, Northern Europe was up 9%, the Americas grew by 12%, India, Middle East, Africa and Turkey grew by 68% while Asia Pacific RevPar declined by 9%.

In the third quarter of 2022, Accor opened 93 hotels corresponding to 15,300 rooms, representing net network growth of +2.4% over the past 12 months. This represents a significant acceleration in the pace of room openings compared with the first half of 2022. At the end of September 2022, the Group has a hotel operator base of 789,152 rooms (5,357 hotels) and a pipeline of 212,000 rooms (1,218 hotels). For the 2022 financial year, the Group confirms its forecast for net network growth of around 3.5%. 

Business momentum remained very strong in the quarter, during which the Group's RevPAR and revenue were well above 2019 levels. With the exception of Asia-Pacific, where activity is now picking up, all geographies are growing compared to 2019. This strong performance combined with strict operational and financial discipline allows us to be confident in our ability to achieve the high end of our EBITDA target for the year, which is expected to be between €610 million and €640 million. 

Sébastien Bazin, CEO of Accor

On the Hilton side, system-wide comparable RevPAR increased 29.9% compared to the same period in 2021, due to higher occupancy, higher average daily rate and 33% higher fee income. For the nine months ended 30 September 2022, comparable system-wide RevPAR increased by 49.6% compared to the same period in 2021.

Net profit was USD 346 million for the third quarter, exceeding the upper limit of expectations. Adjusted EBITDA was $732 million in the third quarter, also exceeding the upper end of guidance. For the full year 2022, comparable system-wide RevPAR is expected to increase by 40-43% over 2021. Full-year net income is expected to be between $1,219 million and $1,240 million and full-year adjusted EBITDA is expected to be between $2,500 million and $2,530 million.

During the third quarter of 2022, Hilton opened 80 new hotels, adding 12,900 rooms to the Hilton system and achieving net growth of 12,100 rooms. During the quarter, the company opened the 25,000th room in the Curio Collection by Hilton brand and the 600th property in Hilton Hotels & Resorts.

In addition, Hilton continued to expand its luxury portfolio with the opening of the Waldorf Astoria Kuwait. As of September 30, 2022, Hilton's development pipeline included more than 2,810 hotels, representing nearly 416,000 rooms, in 112 countries and territories. In addition, of the rooms under development, 204,200 were under construction and 242,600 were located outside the U.S. 

The third quarter marked an important milestone in our recovery as system-wide RevPAR exceeded the same period in 2019 for the first time since the start of the pandemic. Our diluted earnings per share, adjusted for special items, and adjusted EBITDA exceeded the upper end of our guidance. The improved performance reflects continued strength in leisure travel, as well as a recovery in demand from transient business travellers and groups. We expect these strong trends to continue into the fourth quarter, with system-wide RevPAR once again exceeding previous peaks. 

Christopher J. Nassetta, CEO of Hilton

For Marriott, comparable system-wide RevPAR increased 36.3% globally, 28.5% in the US and Canada, and 66.1% in international markets, compared to the third quarter of 2021. Reported net income for the third quarter was $630 million, compared to reported net income of $220 million in the previous quarter. And EBITDA was $985 million, compared to $683 million in the third quarter of 2021.

The group added about 14,000 rooms globally during the third quarter, including about 8,700 rooms in international markets and nearly 3,900 conversion rooms. At the end of the quarter, Marriott's global development pipeline consisted of more than 3,000 properties and more than 502,000 rooms, including approximately 33,300 rooms approved but not yet under signed contracts. Approximately 204,800 rooms in the pipeline were under construction at the end of the third quarter of 2022.

On 10th November 2022, Marriott announced a quarterly cash dividend of 40 cents per share of common stock. This signifies a 33% increase vs the previous quarterly dividend. The dividend is payable on 30th December 2022, to shareholders of record as of the close of business on 23rd November 2022. Furthermore, it announced that its board has increased the authorisation to repurchase the company's Class A common stock by an additional 25 million shares. This increase takes the amount to 30.8 million shares authorised for buyback. As of 9th November, Marriott has repurchased 11.6 million shares for $1.8 billion.

We are very pleased to report another quarter of exceptional results. Global RevPAR more than fully recovered, increasing nearly 2% over 2019. In the third quarter, RevPAR versus 2019 improved sequentially from the second quarter in every region of the world. [...] While we are carefully monitoring macroeconomic trends, bookings across all of our customer segments remain strong, contributing to the current momentum in our business. We expect continued demand growth globally in the fourth quarter and anticipate that global RevPAR could increase 2 percent to 4 percent over 2019.

Anthony Capuano, CEO of Marriott International

For Hyatt, comparable system-wide RevPAR increased 45.9% and comparable U.S. hotel RevPAR increased 35.6% in the third quarter of 2022 compared to the third quarter of 2021.Comparable owned and leased hotel RevPAR increased 47.4% with a significantly improved operating margin to 24.1% in the third quarter of 2022.

System-wide comparable RevPAR increased 2.0% in the third quarter compared to the same period in 2019, driven by a 13.6% increase in the average rate. For the month of September, comparable system-wide RevPAR increased by 3.1% compared to 2019, reflecting a better contribution from group and business traveller revenues.

The group reported net income of $28 million in the third quarter of 2022, compared to net income of $120 million in the third quarter of 2021. Adjusted net profit was $72 million in the third quarter, compared to adjusted net profit of $241 million in the third quarter of last year. 

Adjusted EBITDA was $252 million in the third quarter of 2022, compared to $110 million in the third quarter of 2021. Apple Leisure Group (ALG) contributed $78 million to adjusted EBITDA. Adjusted EBITDA does not include ALG's net deferrals of $17 million and net funded contracts of $26 million in the third quarter of 2022.

During the third quarter, 22 new hotels, representing 4,243 rooms, joined the Hyatt system. Notable openings include Dreams Cozumel, Hyatt Regency Lisbon, Park Hyatt Jakarta, Thompson Madrid and Unbound Magma Resort Santorini. As of September 30, 2022, the company had a pipeline of executed management or franchise agreements for approximately 550 hotels, or approximately 114,000 rooms, including ALG's contribution to the pipeline of approximately 20 hotels, or approximately 8,000 rooms.

We had an extraordinary quarter that demonstrates our unique positioning and differentiated model. We reported total fee-based revenue that was 50% above 2019, raised our full-year 2022 net room growth outlook to approximately 6.5%, and expanded our pipeline to 114,000 rooms. Our stronger mix of fee-based revenue is driving record results and strong free cash flow. We continue to see demand accelerate and our outlook remains optimistic based on our latest booking trends.

Mark S. Hoplamazian, CEO of Hyatt

Meliá Hotels International also reported a more than satisfactory third quarter. In fact, the revenue generated by the group excluding capital gains in the third quarter was €532 million, up 3% on the same period of 2019, and +82.9% on 2021. Taking into account the first 9 months of 2022, revenues were -8.1% lower than in 2019, due to the aforementioned full-year impact of Omicron.

As for RevPAR, it increased significantly during the third quarter in all regions, except Asia. This significant growth was driven by a 29.1% increase in average daily rate compared to the previous quarter. 

The group points out that its positioning in the luxury segment, as well as the growing demand for superior rooms, also played an important role in the improvement of its margin compared to the third quarter of 2019. The consolidated profit attributable to September, 52.6 million euros, improved by +131.6% compared to the previous year, and the EBITDA continued its positive trend obtaining 328.5 million euros in the first 9 months of the year. 

Meliá continues its commitment to growth in the main holiday destinations, having signed 26 hotels up to October for a total of 6,463 rooms. The 15 hotels that are part of the alliance with Vinpearl in Vietnam are already fully operational, as well as the signing of 3 new hotels in Albania, in addition to the 4 hotels already signed in this emerging Mediterranean destination, and the two new hotels in Mexico and the city of Guadalajara. 

In terms of new openings, in the first 9 months of the year, the Group opened 27 hotels (all managed or franchised) in Vietnam, Brazil, Spain and Croatia, and maintains a forecast of a minimum of 30 openings by 2023, which will represent the addition of more than 6164 rooms.

After a very challenging start to the year due to the impact of the Omicron variant, business performance continued to improve and in the third quarter (the quarter with the highest contribution to the company's results) revenues exceeded those of the same period in 2019. In addition to the economic factors that demonstrate the resilience of demand, Meliá has benefited from strategic advantages that have allowed it to accelerate the recovery, such as its strong positioning in the holiday segment, and the optimisation of revenues thanks to its leadership in digital distribution through channels such as Melia.com and meliaPro.com, in addition to the strategy of renovating and repositioning a large part of the portfolio in the superior and luxury segment, which is more in demand and more profitable. Likewise, the Group's strategic focus on cost control and efficiency improvement through the increasing digitalisation of processes and the design of a new operating model for the Group, has facilitated the improvement of margins.

Gabriel Escarrer, Executive Vice President and CEO of Meliá Hotels International

NH Hotel Group is equally pleased with the quarter, with revenues of €516 million, 18.3% higher than the third quarter of 2021. The strategy of maximising ADR, combined with tight cost control, unlocked another consecutive quarter of record profits, partially mitigating the impact of inflation, and achieved a recurring net profit of €31 million. Total net profit, including net gains on asset rotation, amounted to 56 million euros.

Strong revenue growth partially offset higher payroll and operating costs. Recurring EBITDA amounted to EUR 353.9 million in the first nine months of the year, five times higher than the EUR 66.2 million recorded in the first nine months of last year.

During this third quarter, the average daily rate for NH hotels was €130, an increase of 16.9% like-for-like compared to the third quarter of 2019 and 42.2% year-on-year. At 69.5%, the third quarter occupancy rate was 5% lower than in the third quarter of 2019. 

In terms of occupancy and average daily rates, the relative strength of Southern Europe in the first nine months of the year is explained by the rapid easing of restrictions following the slowdown induced by the omicron variant. In Spain, these metrics were 69% and 121 euros, thanks to improved momentum in Madrid and strong momentum in Barcelona and secondary cities. 

In Italy, the occupancy rate was 62% and the ADR was 155 euros. In the Benelux, occupancy averaged 56% and daily rates were 136 euros. In Central Europe, the occupancy rate was 53% and the ADR was 104 euros. Finally, in Latin America, occupancy and daily rates averaged 56% and 71 euros, respectively.

The gradual recovery of business travel throughout Europe since June has further strengthened the group's revenue structure. Despite the slowdown in the first quarter due to the omicron variant, the healthy momentum in average daily rate (ADR) and occupancy metrics since March ensured that in the following six months, revenue exceeded total revenue between January and September 2019, before the start of the pandemic. At the same time, we managed to significantly reduce net financial debt from 568 million euros at the end of 2021 to only 315 million euros at the close of September.

Ramón Aragonés, CEO of NH Hotel Group

For franchisor Choice Hotels International, domestic RevPAR accelerated quarter-over-quarter, increasing 15.2% for the third quarter of 2022, compared to the same period in 2019. This trend continued during the month of October with RevPAR up approximately 20%, compared to October 2019. An increase in RevPAR that can be explained in particular by the increase in the average daily rate, +15.1% compared to the third quarter of 2019.

The number of national franchise contracts awarded in Q3 2022 increased by 38% compared to the same period last year. As a result, the Group's total domestic pipeline as of 30 September 2022 increased by 16% to 1,017 hotels, or more than 98,000 rooms, compared to the previous year.

The extended stay portfolio has consistently exceeded 2019 RevPAR levels since April 2021 and recorded domestic RevPAR growth of 21.8% in the third quarter of 2022, compared to the same period in 2019. The WoodSpring Suites brand recorded RevPAR growth of 27.5% in Q3 2022, driven by 81% occupancy levels and a 22% increase in ADR.

The company's overall mid-market portfolio has consistently exceeded 2019 RevPAR levels since June 2021 and achieved domestic RevPAR growth of 11.3% in Q3 2022 compared to the same period in 2019. In Q3 2022, the Comfort brand continued to deliver RevPAR share gains over local competitors. 

Finally, the premium portfolio recorded domestic RevPAR growth of 18.3% for the third quarter of 2022, compared to the same period in 2019.

Choice completed the acquisition of Radisson Hotels Americas on 11 August 2022. As of September 30, 2022, the number of global rooms in the company's targeted upscale and midscale segments, both open and in the development pipeline, increased by more than 73,000 following the acquisition. At the end of the quarter, the group had more than 730,000 rooms open or in the development pipeline, including the additional rooms from Radisson Hotels Americas.

Our third quarter results and the acquisition of the Radisson Hotels Americas business represent a significant step forward in the evolution of Choice Hotels' competitive position and future growth potential. For 11 consecutive quarters, our RevPAR growth has outpaced the hotel industry, confirming that our strategy of focusing our investments and growth on hotel segments and locations that increase RevPAR is working. Our future growth is now strengthened by the addition of the Radisson Hotels Americas brands to our best-in-class service delivery engine. Radisson Hotels Americas is expected to provide the company with significant additional recurring adjusted EBITDA upon full integration in early 2024.

Patrick Pacious, CEO of Choice Hotels

The American rental giant Airbnb also performed very well during this period. Airbnb even posted record revenues and profits, with net income up 46% year-on-year to $1.2 billion. This makes Q3 2022 its highest quarter on record, with business volume of $15.6 billion, up 31%.

The platform reported Q3 revenue of $2.9 billion, up 29%, which is also a record for the company. Adjusted EBITDA was $1.5 billion, also a record. These are all indicators that contrast with the two years of health crisis and travel restrictions in 2020 and 2021. Airbnb recorded a total of 99.7 million "nights and experiences" booked, up 25% year-on-year.

Firstly, customer demand remains strong, comments the holiday rental specialist. We believe that new use cases, including long term stays and non-urban travel, are here to stay, as millions of people have new flexibility in where they live and work. At the same time, we have also seen a recovery in urban and cross-border travel, which made up the vast majority of our business before the pandemic. Secondly, we're seeing strong growth in the number of new hosts on Airbnb. 

Brian Chesky, founder of Airbnb 

Apple Leisure REIT has also recorded quarterly results that exceeded analysts' expectations with a turnover of $341,2M. Apple Hospitality REIT shares gained 2.35% to settle at $16.58 in after-hours trading. As of September 30, 2022, the company owned 218 hotels with an aggregate of 28,693 guest rooms located in 86 markets throughout 36 states.

For the third quarter 2022, as compared to the third quarter 2019, the Company's portfolio achieved an improvement in RevPAR of approximately 8%, despite lower occupancy, with ADR growth of approximately 13% and a decline in occupancy of approximately 5%. Occupancy for the Company's portfolio for the month of October 2022 accelerated relative to August and September, reaching approximately 78%, up 7% as compared to October 2021 and down 4% as compared to October 2019, with continued strength in ADR.

The Company achieved Comparable Hotels Adjusted Hotel EBITDA of approximately $129 million for the third quarter 2022, an improvement of approximately 19% and 4%, as compared to the third quarters of 2021 and 2019, respectively. 

Apple Leisure anticipates investing approximately $55 million to $65 million in capital improvements during 2022, which includes various renovation projects for approximately 20 to 25 hotels. In October, the company acquired 2 hotels in the USA and sold its 55-room independent boutique hotel in Richmond, Virginia, for a gross sales price of approximately $8.5 million, resulting in a gain on sale of approximately $1.8 million. 

During the quarter, we successfully refinanced and upsized our primary unsecured credit facility, further enhancing the strength and financial flexibility of our balance sheet and providing the Company with greater access to liquidity for strategic growth. We continue to allocate capital in ways that we believe will optimize our performance and maximize total returns for our shareholders over time, and in recent months opportunistically repurchased shares, increased our monthly distribution, reinvested in our assets and strategically acquired two high-quality hotels poised for future growth.

Justin Knight, Chief Executive Officer of Apple Hospitality

Finally, Eurazeo posted a turnover of €280.3m for the first nine months of 2022, up 22% on a like-for-like basis. Third-party management activity increased by 25% to €207.6m, driven by the momentum of fundraising while management fees calculated on behalf of Eurazeo's balance sheet amounted to €72.7 million, increasing by 15%. Realised performance fees amounted to €73m over 9 months, taking into account the disposals made. Estimated performance fees on announced but not yet completed transactions are approximately €8m.

The Group's investments totalled €3.8bn over 9M 2022 compared to €4.1bn over 9 months 2021. In Private Equity, the Group remains particularly selective in its investments, favouring sectors driven by long-term structural trends, in a complex and uncertain economic and geopolitical context. 

The economic sales of the portfolio companies reported in the balance sheet grew by 38% over the first nine months of 2022, at constant Eurazeo scope and exchange rates. All of the Group's strategies have grown since the beginning of the year. Travel and leisure companies are experiencing a strong rebound in business. 

At the end of September 2022, Eurazeo's Assets Under Management (AUM) amounted to €32.4 billion, up 20% over 12 months. AUM managed on behalf of third-party investors (Limited Partners, LP) amounted to €23.2 billion, up 21% over 12 months. Fee Paying AUM amounted to €21.5bn, up 23% year-on-year.

Eurazeo achieved solid growth in the first nine months of the year in a complex and uncertain economic and geopolitical environment. The good execution of the fundraising program, the double-digit growth in management fees, the sustained level of asset turnover and the growth of our portfolio companies, confirm the Group's continued momentum, the relevance of its investment sectors and its discipline and solidity. Eurazeo has initiated promising flagships fundraising in 2022 on several of its strategies that will fuel the Group's growth in 2023. 

Virginie Morgon, Chairman of the Management Board of Eurazeo 



Hotel Group

  • Accor France
  • Offres d'emplois 35 currents job offers


Hotel Group

  • Hilton United-States
  • Offres d'emplois 13 currents job offers
Marriott International

Marriott International

Hotel Group

  • Marriott International United-States
  • Offres d'emplois 59 currents job offers
Meliá Hotels International

Meliá Hotels International

Hotel Group

  • Meliá Hotels International Spain
NH Hotel Group

NH Hotel Group

Hotel Group

  • NH Hotel Group Spain
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