[Update] Q1 2023, the hospitality industry is thriving

8 min reading time

Published on 12 May 2023

Q1 2023, the hospitality industry is thr

End of April is the moment for global companies to share their financial results and performances for Q1. Performances are exceptional and the global slowdown in the development of supply will certainly not reverse this trend.

According to WTTC (World Travel & Tourism Council), the travel industry recovered 95% of its 2019 activity.  By the end of 2023, the 5% contribution to global GDP will be recovered.

Julia Simpson, president &CEO of WTTC declared: “We expect 2024 to exceed 2019. The recovery will speed up this year as Chinese travelers re-enter the market and over the next 10 years, Travel & Tourism will continue to grow as a sector.”

Travel and leisure, after several months of restrictions is now considered as important as food, accommodation, and education for the richer part of the global population.

A very positive trend that fuels the hospitality industry and allows its stakeholders to share excellent results for Q1 2023.

Hilton takes strong advantage of its global presence

Hilton, reports a +30% RevPAR versus Q1 2022 and +8% vs. 2019. Regarding revenues, a + 43% EBITDA compared to the same period in 2022. The adjusted EBITDA reaches $641M. Hilton anticipates a $1,331 million to $1,385 million net income.

Asia Pacific shows the best resilience with a +24.1 points of OR compared to 2022.

The number 2 of resilience within Hilton’s portfolio is Europe which attracted à +15,3 pts OR compared to the same period in 2022. Americas (excluding US) are posting the 3rd best evolution with + 14,7pts of OR, followed by MEA (+8,1 pts) and the US (+6,5pts).
The best OR in Q1 2023 was in MEA (74,3%) Ramadan being undoubtedly a great booster, followed by US (68,6%), Asia Pacific (65,8%), Americas (65,5%) and finally Europe (62,1%).

Hilton opened 9,200 rooms during the period and grew its portfolio of 5,300 rooms.

Accor starts 2023 with good numbers

Accor also posts positive results with a RevPAR up 57% versus Q1 2022 and up 19% compared to Q1 2019.

Sébastien Bazin, Chairman and Chief Executive Officer of Accor, said: “In first-quarter 2023, Accor once again stepped-up business growth across all regions and in its two divisions: Premium, Midscale and Economy; and Luxury & Lifestyle. These excellent performances were driven by the strong rebound in Asia, good price levels, and increased occupancy rates. They reflect the attractiveness of our brands, the commitment of our teams, and an ever-greater desire for travel and adventure on the part of our guests.

Given this highly positive start of the year, we have revised our 2023 guidance upwards, with double-digit RevPAR growth versus 2022."

The French company declares +54% like for like revenue compared to Q1 2022. Resulting into an income of €1,139M. This progression represents a +52% of revenue for the Premium, Midscale and Economy division and +62% for the lifestyle and luxury division.

Accor opened 36 hotels, being 4,400 rooms and grew its portfolio of +2.9%

In Europe and Asia, beginning of 2022 was low in performances due to Omicron. Q2 will show the hospitality industry whether the recovery is slowing down or not.

Not surprisingly, for the Premium, Midscale and Economy division, it is the Middle east Asia-Pacific region that reported the best KPIs evolutions with a +69% RevPAR compared to Q1 2022. Followed by Europe (+54% RevPAR), and the Americas (+49% of RevPAR).

For the lifestyle and luxury division, RevPAR rose by +50% mostly due the ADR raise in the luxury segment which offers much less price sensitivity.

Wyndham performs, but less than its competitors

For Wyndham, RevPAR growth evolved by +12%. A growth less important than its worldwide top 10 competitors due to its budget and eco brands that weigh more in its portfolio. The franchisees had therefore less opportunities to rise ADRs. This RevPAR progression is also supported by properties outside the US soil with a +37% RevPAR in this area.

Wyndham developed its room portfolio by +4%, (+1% in the US and +9% in the rest of the world).

Geoffrey A. Ballotti, president and chief executive officer said: “We outperformed our adjusted EBITDA expectations, leading us to raise our full-year outlook as a result.  With our seasonally strongest summer season on the horizon and no signs of slowdown in our middle-income guests’ desire to spend on travel, we’re enthusiastic about the opportunities that lie ahead and our ability to deliver outstanding value to our shareholders, guests, franchisees, and team members.”

Financial results are on a downtrend due to the selling of several owned hotels and the exit of its select-service management business.

The Indian IHCL posts record performances

The company posted a $242M EBITDA for Q1 up to 247% compared to the same period in 2022.

Puneet Chhatwal, Managing Director & CEO, IHCL commented :

IHCL achieved a record setting year with a number of significant accomplishments including the highest ever full year consolidated revenue, an all-time high and industry leading EBITDA margin and PAT of over INR 1,000 crores (125 USD Mn) a historic first for the company. This performance was enabled by consecutive four quarters of sustained high demand, additionally bolstered by IHCL demonstrating RevPAR leadership across its brandscape in all its key markets. 

IHCL crossed 260+ hotels in its portfolio including 36 signings at a rate of 3 hotels a month and 16 openings or a new hotel every three weeks in the year. IHCL’s vast footprint now covers 31 States and Union Territories in India. We were also able to achieve an optimal 50:50 mix between our owned/leased and managed hotels.”

Choice Hotels International posts several first quarter records

The lodging franchisor recorded a RevPAR increase of 5.9% for first quarter 2023 compared to the same period of 2022. This growth was principally driven by an increase in average daily rate (ADR) of 5.2% and a 34-basis-point increase in occupancy levels.

Choice’s adjusted EBITDA for 1Q 2023 reached $106.4 million, a first-quarter record and a 10% increase compared to the same period of 2022.

Also a first quarter record for the franchisor was its total revenues of $332.8 million, a 29% increase compared to 1Q 2022.

Patrick Pacious, President and CEO, stated: “Building on our record 2022 earnings results, our distinct growth strategy and best-in-class franchising business engine drove first quarter performance to new levels, with adjusted EBITDA increasing by 10% year-over-year. At the same time, we are ahead of plan integrating the Radisson Hotels Americas business unit, which we expect will further accelerate our transformative growth.”

As of 31st March 2023, Choice’s global pipeline increased 14% to over 96,000 rooms, representing 988 hotels.

NH Hotel Group records positive operating trend

The hospitality group’s RevPAR amounted to €68, compared to €36 in 1Q 2022 and €61 in 1Q 2019. On a comparable basis, it posted a 9% increase in RevPAR in first quarter 2023, versus the same period in 2019.

NH Hotel Group’s occupancy grew by 59.7% in 1Q 2023, though remained 5pp below 1Q 2019 levels. The strongest performing zone in this metric was Southern Europe, where the group nearly equalled pre-Covid levels.

First quarter EBITDA came in at €59 million, compared to €9 million in 1Q 2022 and €83 million in 1Q 2019.

Meliá Hotels International progresses in occupancy

The Spanish actor’s RevPAR stood at €64.80 in the first quarter of 2023, representing a 43% growth compared to 1Q 2022. This was accompanied by a positive evolution of the average rate and a rising occupancy rate month after month.

Meliá’s 1Q EBITDA reached €78 million, an increase of 243.4% with a 44% flowthrough conversion rate.

Gabriel Escarrer Jaume, Vice-Chairman & CEO, declared: “The first quarter of the year confirms a recovery of tourism worldwide, not only in the resort and urban leisure segments, but also in groups and business (MICE segment). The behaviour of demand still shows the "revenge" or "champagne bottle" effect that was triggered by the lifting of pandemic-related restrictions, while a more structured demand behaviour seems to be consolidating, reflecting the growing priority assigned to travelling in the life and consumption habits of the main markets, even in spite of inflationary pressures, interest rate hikes, turmoil in sectors such as energy, and the risk of slowdown in certain markets. This reaction is also noticeable in those countries that withdrew sanitary restrictions later, such as China, Japan, or Australia, where the take-off of demand for travel abroad is strongly tangible from the 2nd quarter of 2023, especially to the destinations in Southeast Asia.”



Hotel Group

  • Accor France
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Wyndham Hotel Group

Wyndham Hotel Group

Hotel Group

  • Wyndham Hotel Group United-States
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