As the third quarter of 2023 draws to a close, it's time for multinationals to take stock of their finances and analyse their performance.

Wyndham Hotels & Resorts: solid results with sustained growth and a record development pipeline

Wyndham Hotels & Resorts reported a 3% increase in global RevPAR, accompanied by a decline in the US but substantial international growth.

Adjusted EBITDA increased by 5% to $200 million, and net profit reached $103 million, or $1.21 per diluted share, exceeding the $101 million of the previous year for the same period.

Their development pipeline includes more than 1,930 hotels and 237,000 rooms, with major construction projects.

The company repurchased 1.4 million shares for $105 million during the third quarter, rejected Choices Hotels' offer and updated its annual growth projections for 2023. It signed more than 230 contracts, an increase of 8% on the previous year, including 60 new construction projects for ECHO Suites Extended Stay by Wyndham.

A total of $134 million was distributed to shareholders, of which $105 million came from share buybacks and a quarterly cash dividend of $0.35 per share.

Geoff Ballotti, president and CEO of Wyndham Hotels & Resorts, said the company's growth prospects offered superior returns, which was evident in the third quarter results. The company saw steady growth in overall RevPAR, both domestically and internationally. Adjusted EBITDA met expectations and the company continued to focus on expanding its ECHO Suites brand.

Hilton: resilient performance, broader horizons and positive outlook for 2023

Hilton demonstrated strong performance, with their system-wide RevPAR showing robust growth, increasing 6.8% compared to the third quarter of 2022 on a currency-neutral basis and by an impressive 11.4% compared to the same period in 2019.

Their adjusted EBITDA climbed to $834 million, indicating a strong operational performance, and net profit for the quarter was $379 million.

Hilton approved 35,500 new rooms for development during the quarter, taking their development pipeline to a record 457,300 rooms. The group added 15,700 rooms to its system during the quarter, reflecting its commitment to providing travellers with more options.

Shareholders benefited from significant returns, with Hilton repurchasing 4.5 million shares of its common stock during the quarter for a total of $723 million in the quarter and $1,938 million year-to-date through October.

Finally, Hilton launched new brands such as Spark by Hilton and Tempo by Hilton.

For the full year 2023, Hilton expects strong performance with an expected increase in system-wide RevPAR of between 12.0% and 12.5% compared to 2022. The group also expects net profit of between $1,375m and $1,389m and adjusted EBITDA of between $3,025m and $3,045m, underlining its focus on operational excellence. Return on capital for shareholders is expected to be between $2.4 billion and $2.6 billion for the full year 2023.

Accor: robust performance underpinned by strong RevPAR growth, an expanding hotel network and an upwardly revised financial outlook

The Accor group has reported RevPAR growth of 15% over the third quarter of 2022, despite a high basis of comparison, with strong performance across all market segments. The group has raised its RevPAR growth guidance for the full year 2023.

The Group has raised its forecast for expected EBITDA to between €955 million and €985 million.

For the third quarter of 2023, Accor reported total revenue of €1,286 million, up 13% at constant exchange rates compared with the third quarter of 2022. This growth was driven by both the Premium, Midscale & Economy division (+13%) and the Luxury & Lifestyle division (+17%).

The Premium, Midscale & Economy division saw its sales increase by 13%, mainly thanks to strong RevPAR growth of 15%. The Europe, Africa and Middle East (ENA) region reported a 9% increase in RevPAR, with variations from country to country.

The Luxury and Lifestyle division reported a 17% increase in sales. The luxury segment (which accounts for 77% of the division's sales) saw a 15% increase in RevPAR, while the lifestyle segment (23% of sales) saw a 12% increase in RevPAR.

Accor opened 73 hotels (around 9,200 rooms) in the third quarter, representing net network growth of 3% over the past 12 months. By September 2023, the Group will have a hotel network of 812,425 rooms and a pipeline of around 219,000 rooms.

The Group is now forecasting RevPAR growth of just over 20% for the full year 2023 (previously in the upper range of 15% to 20%).

The Group's EBITDA is now expected to be between €955 million and €985 million (previously between €930 million and €970 million).

CapitaLand Ascott Trust (CLAS): strong trading performance in the third quarter of 2023

The trust recorded a 13% increase in gross profits compared to the same period in 2022. This growth was driven by revenue gains that successfully offset higher operating and funding costs.

In particular, 44% of gross profits were attributed to management contracts for serviced residences and hotels, while the remaining 56% came from stable revenue sources such as longer-stay properties, head leases and management contracts with guaranteed income.

Revenue per available unit (RevPAU) for the portfolio increased by 17% year-on-year in Q3 2023. Demand for accommodation remained strong, resulting in RevPAU exceeding pre-Covid levels.

Key markets including Japan, Australia and the US showed significant growth in RevPAU compared to the pre-Covid period, reaching 117%, 113% and 110% of pre-Covid same-store levels respectively. Other markets such as Singapore, the UK, China and Vietnam also performed well.

CLAS paid 3.48 cents distribution per stapled share (DPS) for the period 1 January 2023 to 13 August 2023. In addition, an early distribution of 0.701 cents was paid for the period 1 July 2023 to 13 August 2023.

The trust's strong trading performance, active portfolio management and solid operating results have placed it in a favourable position to navigate the current environment of higher and longer interest rates. It is clear that CapitaLand Ascott Trust has demonstrated its resilience and ability to adapt to changing market conditions.

Marriott: RevPAR growth, profits and strategic moves

In the third quarter of 2023, comparable system-wide RevPAR in constant dollars increased 8.8% globally, 4.3% in the U.S. and Canada, and 21.8% in international markets compared to the third quarter of 2022.

Reported net profit for the third quarter was $752 million, compared with $630 million in the previous quarter. Adjusted net profit for the third quarter was $634 million, compared with $551 million in the third quarter of 2022.

Reported diluted earnings per share for the third quarter were $2.51, compared with $1.94 in the previous quarter. Adjusted diluted earnings per share for the third quarter were $2.11, compared to $1.69 in the third quarter of 2022.

Marriott repurchased 4.8 million common shares for $950 million during the third quarter. Year-to-date through October 31, the company returned $3.7 billion to shareholders through dividends and share repurchases.

Adjusted EBITDA was $1,142 million in the third quarter of 2023, up from $985 million in the third quarter of 2022.

In the third quarter, Marriott added approximately 17,200 rooms overall to its portfolio, including approximately 13,000 rooms in international markets and more than 4,900 rooms through conversions.

At the end of the quarter, Marriott's global development pipeline included more than 3,200 properties and nearly 557,000 rooms, with approximately 40,300 rooms in the pipeline approved for development but not yet under contract. At the end of the third quarter, approximately 238,000 rooms were under construction.

Hyatt: strong performance, profit growth and expansion

Hyatt Hotels Corporation has reported a strong performance for the third quarter of 2023. The company reported net profit of $68 million in the quarter, marking a significant increase from $28 million in the same period in 2022. Adjusted net profit also rose, reaching $75 million in the third quarter of 2023, compared with $72 million in the third quarter of 2022.

Diluted earnings per share also grew substantially, with Q3 2023 recording $0.63 per share, compared with $0.25 per share in Q3 2022. Adjusted diluted earnings per share reached $0.70 in Q3 2023, compared with $0.64 in the same period last year.

Despite a slight decrease in adjusted EBITDA to $247 million in Q3 2023 (from $252 million in Q3 2022), it is important to note that the adjusted EBITDA figures for Q3 2023 do not include net rebates and funded contracts, which amounted to $35 million, compared to $43 million in Q3 2022.

Comparable system-wide RevPAR grew an impressive 8.9% in the third quarter of 2023 compared to the same period in 2022. In addition, comparable RevPAR for owned and leased hotels increased by 6.3%, with these properties achieving an operating margin of 23.5% in Q3 2023. Net RevPAR for comparable all-inclusive packages also increased significantly.

Hyatt welcomed 20 new hotels, totalling 3,262 rooms, to its network during the third quarter. Notable additions include Calistoga Motor Lodge & Spa, seven UrCove properties and Andaz Macau, which is the largest Andaz-branded property globally at 715 rooms.

At 30 September 2023, the company had a strong pipeline of signed management or franchise agreements for around 600 hotels, representing some 123,000 rooms, pointing to continued expansion and development in the near future.

Melia: Impressive growth and consolidation strategy

In the third quarter, Melia recorded significant sales growth of +16.1% (€1,478.3 million) and an increase in net profit of +71.6% (€108.6 million) in September. The company recorded a significant 6.9% increase in revenues compared with 2022, reflecting a solid commercial performance.

RevPAR showed a significant increase, up 19.5% to September compared with 2022, driven in particular by progress in Spain, EMEA and APAC. Melia.Com accounted for over 46% of total centralised sales, underlining the key role of digital channels in revenue generation. The corporate and MICE segments confirmed their recovery, with cumulative sales growth of over 40% in the first nine months of 2022.

The steady decline in booking cancellation rates has brought stability to the business. The company's efforts to generate efficiencies have resulted in a 171 basis point increase in the Ebitdar margin. The company's liquidity position stands at 358.2 million euros, indicating a solid financial position. During the third quarter of the year, post-IFRS net debt was reduced by €33.2 million.

Melia Hotels International has signed agreements for 18 new hotels totalling 3,500 rooms until September. In addition, the company plans to add at least 12 more by the end of the year, with the expectation of incorporating more than 7,000 rooms under management and franchise arrangements. The company has opened eight new hotels in 2023 to date, offering 1,514 rooms under management or franchise. Melia has scheduled the opening of 26 new hotels until the end of 2024, with the main focus on Mexico, the Mediterranean region and European capitals.

The company expects a positive fourth quarter, influenced by an extended holiday season and the recovery of the Corporate and MICE segments, which show a 26% increase in bookings for 2024. A positive winter season is expected in Cape Verde and the Canary Islands (with a 26.5% increase in bookings compared to the previous season), as well as growth in the US and Canadian markets for Caribbean hotels. The company expects a continued recovery in international tourism in the Asia-Pacific region, facilitated by increased connectivity and flexible entry conditions.

NH: solid performance against a backdrop of recovery

The NH hotel group has announced good financial results for the first nine months of the year. Total sales were up 28.1% on the same period last year, reaching €1,612 million. This represents a significant recovery, exceeding pre-pandemic levels by 51%.

• The average occupancy rate through September was 73%, only one percentage point lower than the occupancy rate in 2019, indicating a strong recovery.
• The average price was reported at €137 per night, reflecting the rate at which rooms were booked and contributing to revenue growth.
• The report presented to the CNMV (Comisión Nacional del Mercado de Valores) indicates that compared to 2019, LFL RevPAR has grown significantly, with a remarkable increase of 24%.This growth was driven by a 26% increase in prices, offset by a marginal decline in occupancy of 1 percentage point.

Third-quarter revenues totalled €586 million, 14% up on the previous year.

• The occupancy rate improved by 2 percentage points to 71% and the average price reached 142 euros, representing an increase of 9.1% compared with the third quarter of 2022 and 28% compared with the same period in 2019. In Spain, France and Portugal, the occupancy rate was 74%, in line with 2022.
• The average price rose by 12% (143 euros). In Italy, the average price was 201 euros (up 15% on the third quarter of 2022) and the occupancy rate was 70%. In Benelux, Central Europe and Latin America, the occupancy rate was 71%, 70% and 68% respectively, all three improving on the same period last year. The average price in Benelux was 158 euros (+13%), in Central Europe 113 euros (+11%) and in Latin America 83 euros (+9%).
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In short, these major players in the hotel and restaurant sector continue to post promising results and to show confidence in their future prospects.