As the end of the third quarter of 2024 approaches, multinationals are preparing to assess their financial statements to analyze key trends, measure their growth, and adjust their strategies to achieve their year-end objectives.
Accor: Positive Indicators for Performance and Development
Accor recorded a 12% growth in its revenue for the third quarter of 2024, reaching 1.434 billion euros, driven by a 5.3% improvement in RevPAR and expansion in key regions. The Luxury & Lifestyle division benefited from an 18% increase in revenue, supported by higher demand and a high occupancy rate. Performance was particularly strong in Europe, North Africa, and Southeast Asia, while France saw a boost due to pre-Olympic demand.
Despite economic challenges in China and the Pacific, Accor continues to develop its portfolio, with 231,000 rooms in the pipeline, further strengthening its global position. For the full year 2024, the company revised its EBITDA forecast to between 1.1 and 1.125 billion euros.
“Once again this quarter, the Group has recorded solid revenue growth, in line with the targets it set. These strong performances are driven particularly by the dynamism of our Luxury & Lifestyle brands, continued growth in our high-potential geographic areas, and the positive impact of the Olympic Games in France, where Accor was one of the Premium partners. By continuing to combine operational agility, execution quality, and financial discipline, we are confident in our ability to solidify the strength of our model in the long term and achieve strong progress in our results in 2024.” - Sébastien Bazin, Chairman and CEO of Accor
IHG : Solid performance driven by the EMEAA region
InterContinental Hotels Group (IHG) has reported steady growth in its third-quarter trading update for 2024, showcasing a global RevPAR increase of +1.5%. This performance was driven by IHG’s broad international presence and rising demand from groups and business travelers.
The Americas saw a RevPAR growth of +1.7%, while the EMEAA (Europe, Middle East, Asia, and Africa) region performed strongly with +4.9%. In contrast, Greater China experienced a -10.3% decline due to ongoing challenges in the region.
“We are pleased with the latest trading performance and another strong period of development activity, and we are on track to finish 2024 in line with market expectations. RevPAR grew +1.5% in the third quarter of 2024, reflecting the strength of our globally diverse footprint, healthy business demand and a record period for Groups bookings. Our EMEAA region again performed strongly, up +4.9%, and the Americas increased by +1.7%, driven by continued growth in the US. In Greater China, RevPAR was down -10.3% as we came up against strong comparatives of resurgent domestic travel this time last year, and the quarter was still broadly in line with 2019 levels.” - Elie Maalouf, Chief Executive Officer, IHG Hotels & Resorts.
Key highlights include significant development progress, with hotel openings more than doubling compared to the previous year. IHG opened 17,500 rooms across 98 hotels during the third quarter, a marked improvement from 7,700 rooms in the same period last year. The hotel group also signed 129 new hotels, representing 19,200 rooms, a 14% year-over-year increase. The global pipeline now stands at 327,000 rooms across 2,218 hotels.
In the EMEAA region, demand remained robust, with a +4.9% rise in RevPAR, underpinned by higher occupancy and average daily rate growth. Notably, Continental Europe posted a +7.1% increase, UK saw a +2.2% growth, while East Asia & Pacific saw a +6.5% development. However, the Middle East faced a -3.2% RevPAR decline.
IHG’s focus on expanding its portfolio through strategic conversions, including agreements with NOVUM Hospitality, has led to the addition of 6,200 rooms from 31 conversions during the quarter. The group’s net system size grew by +4.1% year-over-year, reflecting its commitment to enhancing its global presence. IHG remains on track to meet its full-year expectations and plans to return over $1 billion to shareholders through dividends and share buybacks in 2024.
Hilton: Reaching New Heights with Record Results
Hilton has announced its financial results for the third quarter of 2024, highlighting robust performance and record growth despite some macroeconomic challenges. With a net profit of $344 million and adjusted EBITDA totaling $904 million, the hospitality giant continues to demonstrate resilience and growth across its global operations.
Key Financial Highlights
Comparable revenue per available room (RevPAR) systemwide increased by 1.4% compared to the same quarter last year, driven by higher occupancy rates and an increase in the average daily rate (ADR).
Hilton also added 27,500 new rooms to its development pipeline, bringing the total to 492,400 rooms, an 8% increase from September 2023.
The company achieved a record by adding 36,600 rooms to its system in Q3, leading to a 7.8% net unit growth.
Operational Achievements and Development
In Q3 2024, Hilton reached several milestones, including the opening of its 8,000th hotel globally, marking a significant step in its international expansion. The company also celebrated the opening of its 900th hotel in the Asia-Pacific and EMEA (Europe, Middle East, and Africa) regions, underscoring its commitment to strengthening its presence in international markets.
The launch of Hilton’s new brand, Spark by Hilton, gained popularity, with over 20 new hotels opened, including the first Spark property in Canada.
Hilton expanded its luxury offerings by integrating Small Luxury Hotels of the World (SLH) into its booking channels, extending its reach to 10 new countries and territories. This partnership allows Hilton Honors members to book, earn, and redeem points at popular destinations.
Full-Year and Q4 Forecasts
Looking ahead, Hilton expects systemwide comparable RevPAR growth between 2.0% and 2.5% for 2024, with anticipated net earnings of $1.405 billion to $1.429 billion. Adjusted EBITDA is estimated to be between $3.375 billion and $3.405 billion. For Q4, RevPAR growth is projected at 1.0% to 2.0%.
The company anticipates a net unit growth between 6.0% and 7.0% for 2025.
"We’re thrilled to have achieved solid results, exceeding our forecasts, despite a slowdown in revenue growth due to modestly slower macroeconomic trends, climate impacts, and unfavorable calendar shifts. We continued to showcase our model’s strength by opening more rooms in a single quarter than ever before." – Christopher J. Nassetta, President and CEO of Hilton
Wyndham Hotels & Resorts: A Winning Strategy and Strong Development
Wyndham highlights include a 4% increase in global room count, with over 17,000 new rooms opened, nearly 7,000 of which are in the U.S., representing a 15% year-over-year growth. The company awarded 197 development contracts worldwide, including 95 in the U.S., marking a 10% increase from last year. The development pipeline grew by 1% over the previous quarter and 5% year-over-year, reaching a record 248,000 rooms.
As of September 30, 2024, Wyndham's global development pipeline included around 2,100 hotels and 248,000 rooms, a new record and a 5% year-over-year increase. Highlights include a 7% increase in the U.S. and a 3% increase internationally, marking the 17th consecutive quarter of sequential pipeline growth. About 70% of the pipeline consists of mid- and upscale segments, up 6% year-over-year, and approximately 14% is attributed to ECHO Suites Extended Stay by Wyndham, for which 283 contracts have been awarded since launch. The pipeline is 58% international, with 79% in new construction, of which 35% are already underway.
RevPAR
Global RevPAR increased 1% in Q3 at constant exchange rates, reflecting a 1% decline in the U.S. and 7% international growth.
In the EMEA, Latin America, and Canada regions, RevPAR collectively rose by 13%, driven by an 11% ADR increase and 2% occupancy growth. However, RevPAR in APAC declined by 7% due to a 2% decrease in occupancy and a 5% drop in ADR. Notably, APAC’s Q3 performance showed a sequential improvement of 500 basis points.
Q3 Operating Results
Wyndham achieved a net profit of $102 million compared to $103 million in Q3 2023. Adjusted EBITDA rose 4%, reaching $208 million compared to $200 million in the previous quarter.
"The stabilization of RevPAR trends and improved comparisons, along with an increased infrastructure demand, should pave the way for better results in upcoming quarters. We remain committed to our long-term strategy, providing exceptional value to our customers, franchisees, and shareholders, to whom we have returned nearly $380 million year-to-date through dividends and share buybacks." – Geoff Ballotti, President and CEO
Compagnie des Alpes: Growth Momentum Amid Economic Challenges
Compagnie des Alpes recently announced its 2023/24 fiscal results, with consolidated revenue reaching €1,239 million, up 10.1% from the previous year. This impressive performance reflects positive momentum across all divisions, highlighted by a record end-of-year for Leisure Parks despite challenging weather conditions.
Distribution & Hospitality
In the Distribution & Hospitality sector, revenue reached €116.4 million, a 5.5% increase from 2022/23. For Q4 alone, revenue hit €11.6 million, marking a notable 17.9% increase, primarily driven by MMV’s exceptional performance during the summer season. MMV currently stands as the leading bed manager in the French Alps, with a total of 29,000 beds under management, solidifying its market leadership.
MMV, as the second-largest hotel operator in the French Alps, reported double-digit growth in accommodations, supported by the opening of a new Club Residence in Risoul and the renovation of Alpe d’Huez Village Club.
Mountain Collection Real Estate, the largest real estate agency network in the French Alps, also saw strong growth, thanks to revised pricing structures and a new agency in Val Thorens.
Travelfactory, a tour operator, has refocused its strategy on a margin-based approach, impacting its revenue.
Ski Areas and Outdoor Activities
The Ski Areas and Outdoor Activities division also saw a record year, with revenue of €552.8 million, a 13% increase from the previous year. Ski lift operations, generating €527.9 million (over 95% of the division’s revenue), benefited from an 8.1% increase in skier days and a 5.2% rise in average revenue per skier day. The group’s strong offerings resulted in a total of 13.8 million skier days, driven by exceptional snow coverage, well-positioned French school holiday schedules, and coordinated promotional efforts with the mountain ecosystem.
Leisure Parks
Finally, the Leisure Parks division achieved a remarkable performance, with revenue reaching €570.1 million, a 5.9% increase on a comparable basis. This growth is significant given adverse conditions, such as inclement weather and major sports events like Euro 2024 and the Paris 2024 Olympics. Despite a slight 0.4% increase in attendance to 10.6 million visits, the 5.2% increase in average visitor spending demonstrates the division’s resilience. Q4 revenue for the Leisure Parks reached €238.8 million, up 12.6%, with record attendance at several sites, supported by effective marketing initiatives.
Outlook
Looking ahead, Compagnie des Alpes remains optimistic yet cautious amid economic uncertainties. Despite the potential impact of weather conditions and the Olympics, strong Q4 performances in the Leisure Parks division support an EBITDA target of approximately €350 million, an increase of about 15% year-over-year. Early indicators for the 2024/25 fiscal year are encouraging, especially in booking rates for high-altitude winter resorts and MMV properties. Although comparisons to the favorable 2024 ski season are high, early sales for the Halloween season and Christmas bookings indicate a promising start for the upcoming months.
Covivio: Strong performance and strategic strengthening in hospitality
Covivio is experiencing positive momentum across all its sectors, with revenue growth of +6.8% on a like-for-like basis in the third quarter, where all activities demonstrated solid performance.
The hospitality segment recorded significant revenue growth, up +30.5% on a current basis and +10.4% on a like-for-like basis. This momentum is supported by the recovery of tourism and business activities in Europe. The third quarter particularly benefited from the success of the Olympic Games in France, compensating for a decrease in activity observed in the second quarter due to preparations for the event.
Since the beginning of the year, variable revenues in hospitality have increased by +10%, with very strong performance in Germany (+14%) and more modest yet notable growth in France (+3%). At the same time, Covivio has strengthened its position in its subsidiary Covivio Hotels, increasing its stake to 52.5% (up from 43.9% in March 2024), which brings the Group's overall exposure to hospitality to 20% of its portfolio.
Covivio is preparing a major operation with AccorInvest for the end of 2024, focused on restructuring the ownership of properties and funds. This strategic shift transforms Covivio into a hotel operator while retaining its role as an investor and asset manager. This evolution will optimize hotel management and increase value creation through investment programs.
Covivio has consolidated its hotel management platform, WiZiU, which currently manages 10 hotels in France and Belgium. By the end of 2024, it will add 14 new hotels through an operation with AccorInvest, aiming to reposition these establishments through investments and brand changes. WiZiU is expected to manage 24 hotels with 3,090 rooms, representing approximately 9% of Covivio's hotel portfolio.
In the German residential sector, Covivio benefits from a housing shortage, exacerbated by a 21% drop in building permits, leading to rising rents, particularly in Berlin (+9.7% for existing homes and +7.4% for new homes). The Group reports an average rental reversion of 23%, reaching 35% in Berlin, while maintaining an occupancy rate close to 99%. The like-for-like growth in rents stands at 4.2%, with 4.9% in Berlin, its primary market.
The outlook for 2024 is confirmed, with a target for recurring net income of €460 million, an increase of +6% compared to 2023, and a dividend payout ratio exceeding 80%.
Pierre & Vacances-Center Parcs Group: fourth consecutive year of revenue growth in the tourism sector
For the 2023/2024 fiscal year, the Group's total revenue amounts to €1.9 billion, of which €1.8 billion comes from tourism activities, up +3.7%. This growth is notable despite external challenges such as unfavorable weather and political instability in France.
Accommodation Revenue in the 4th Quarter
In the fourth quarter, accommodation revenue reached €472.7 million, an increase of +1.1% compared to the previous year, thanks to a rise in the average selling price of +3.3%. However, the number of nights sold fell by -2.2%. The occupancy rate is at 81.8%, a slight decrease from 83.7% in summer 2023, while RevPar increased by +1.2%.
Brand Analysis
- Pierre & Vacances: In France, revenue from residences decreased by -1.7% due to a -2.9% decline in nights offered. However, on a like-for-like basis, RevPar increased by +1.2%. In Spain, residences experienced strong growth of +10.1%, with a +7.2% rise in nights sold and a +2.7% increase in average selling prices, leading to a RevPar increase of 6.0%.
- Center Parcs: Revenue increased by +1.2%, supported by a +3.8% rise in average selling prices. The Benelux domains performed particularly well (+1.2%), despite challenges for those located in France, where overall RevPar increased by +1.0%.
- Adagio: The brand recorded a decrease of -1.7%, primarily due to the impacts of the Olympic Games in Île-de-France, affecting the attendance of foreign tourists. Nevertheless, the serviced apartments achieved an occupancy rate exceeding 89% during the competitions, indicating resilient demand.
For the fiscal year, accommodation revenue reached €1,392.7 million, an increase of +2.6% compared to the previous year and +30% compared to 2019. This growth results from an increase in average selling prices (+2.3%) and a slight rise in the number of nights sold (+0.3%). The average occupancy rate stands at 74.0%, down by 0.4 points, while RevPar progresses by 2.0%.
Franck Gervais, General Manager of Pierre & Vacances - Center Parcs, stated:
"In an environment that remained complex throughout the year (declining purchasing power, inflationary context, political instability, and the Olympics in France), the Group concludes its fiscal year with growth activity for the fourth consecutive year, with nearly 4% growth in revenue from its tourism brands. This performance reinforces the relevance of our deployed strategy, based on a value creation model that relies on investment and innovation for an immersive customer experience, and on a leadership position in local tourism with a positive impact. It also attests to the dynamism of our teams, who continuously adapt to evolving customer behaviors, and the alignment of our offering for meaningful and environmentally respectful tourism."
CapitaLand Ascendas REIT : Focused Growth and Portfolio Resilience
CapitaLand Ascendas REIT (CLAR) provided its third-quarter 2024 update, reflecting strong financial health, strategic growth, and a commitment to sustainability. CLAR’s asset value stands at S$16.8 billion, spread across key regions including Singapore, the U.S., Australia, and Europe, with investments focused on sectors with high growth potential, such as business spaces, life sciences, logistics, and industrial data centers.
For the quarter, CLAR maintained an aggregate leverage of 38.9% and a stable debt cost of 3.7%, alongside an occupancy rate of 92.1% and a rental reversion of 14.4%, underscoring effective asset management. Investment activities included S$3.9 million in enhancements to Pacific Tech Centre and ONE@Changi City, focused on tenant experience improvements. Post-Q3, CLAR also divested a logistics property at 21 Jalan Buroh, Singapore, for S$112.8 million, marking a strategic capital recycling move.
Capital management remains a priority, with 80% of borrowings on fixed rates and a 3.3-year average debt maturity, offering stability amid interest rate fluctuations. CLAR’s ESG commitments include targets for green certifications across properties, renewable energy consumption, and rigorous governance standards.
Looking at the broader macroeconomic environment, the International Monetary Fund (IMF) forecasts that global economic growth will remain steady at 3.2% in 2024 and 2025, albeit at a modest pace. Risks to the economic outlook persist, including potential escalation in regional conflicts, sustained tight monetary policies, renewed financial market volatility that could impact sovereign debt markets and a possible economic slowdown in China.
CLAR’s diversified portfolio across resilient sectors and proactive strategies help mitigate these risks, positioning it well to navigate the challenging environment while delivering sustainable value to unitholders.
Scandic : stable performance and strategic developments in Q3 2024
Scandic Hotels has published its interim report for the third quarter of 2024, reflecting a stable performance in a fluctuating market. While there was a slight decline in net sales, the company maintained steady bookings and continued its commitment to shareholder returns.
Financial overview for Q3 2024
For the period from July 1 to September 30, 2024, Scandic's net sales decreased by 2.0% to 6,182 million SEK, compared to 6,307 million SEK in the same quarter last year. However, organic growth saw a modest increase of 0.5%, while the average occupancy rate for the quarter rose to 71.4%, up from 71.0.
Revenue performance remained stable, with the average revenue per available room (RevPAR) increasing to 941 SEK, slightly above last year’s figure of 933 SEK. Operating profit was reported at 1,155 million SEK, while adjusted EBITDA stood at 1,077 million SEK.
For the year-to-date period from January 1 to September 30, 2024, net sales experienced a minimal decline of 0.3%, totaling 16,472 million SEK, with organic growth increasing by 0.7%. The average occupancy rate for this period was slightly lower at 62.5%, compared to 62.6% in the previous year. Despite these challenges, the average RevPAR increased to 811 SEK, a rise from 797 SEK in 2023.
Strategic initiatives and future outlook
During the quarter, Scandic implemented several strategic initiatives to strengthen its market position. The company converted all remaining convertible bonds into shares, which is expected to enhance its equity structure. Additionally, Scandic launched a new loyalty program with the goal of doubling its membership by 2030, fostering customer engagement in the Nordic hospitality sector.
Furthering its expansion, Scandic signed agreements for two new Scandic Go hotels, one in Gothenburg and another in Umeå, demonstrating its commitment to growth in key urban areas. The company also secured sustainability-linked long-term financing with major financial institutions, highlighting its focus on responsible growth.
Looking ahead, Scandic’s Board of Directors established new financial targets for 2025-2027, aiming for a net debt-to-adjusted EBITDA ratio below 1x. The company announced a share buyback program of approximately 300 million SEK to support shareholder value, along with plans for an extraordinary dividend of around 550 million SEK, which will be decided in an upcoming extraordinary general meeting.
“Scandic delivered a good quarter and the booking situation is stable. Our new financial targets reflect that we are well positioned for continued solid growth with good profitability and a balanced risk profile. We intend to return to ordinary dividends, and with the convertible loan behind us, we’ve freed up capital that we’ll now return to the shareholders.” - Jens Mathiesen, President & CEO of Scandic Hotels Group
As it continues to expand its footprint in the Nordic region and beyond, Scandic remains dedicated to delivering value to its shareholders and enhancing the guest experience.
Hyatt reports steady growth in third quarter 2024
Hyatt Hotels Corporation has published its financial results for the third quarter of 2024, reflecting continued growth and performance across various segments of the business. The company reported a 3.0% increase in comparable system-wide revenue per available room (RevPAR) compared to the same period in 2023, although the net package RevPAR for comparable all-inclusive resorts saw a decrease of 0.9%.
Key financial highlights
- Net Income: The company achieved a net income of $471 million, with adjusted net income reported at $96 million.
- Earnings Per Share: Diluted earnings per share (EPS) were recorded at $4.63, while adjusted diluted EPS was $0.94.
- Adjusted EBITDA: Hyatt reported adjusted EBITDA of $275 million.
- Net Rooms Growth: The company experienced net rooms growth of approximately 4.3%, indicating an expanding portfolio.
"We reported solid third quarter results, with gross fee revenues reaching $268 million. Our pipeline reached a new record of approximately 135,000 rooms, increasing 10% year-over-year, and World of Hyatt membership expanded to a record of 51 million members, growing a remarkable 22% year-over-year. Our operating results and capital allocation strategy, including the completion of our 2021 asset-disposition commitment, acquisition of Standard International, and planned joint venture transaction to manage Bahia Principe branded hotels and resorts, demonstrate the strength of our asset-light earnings model leading to the return of over $1.2 billion to shareholders through share repurchases and dividends so far this year." - Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt
Performance by region
Hyatt's results were bolstered by strong demand in the business transient and group travel sectors, particularly in the United States. The summer season contributed to a significant increase in Europe, where RevPAR rose by 15% due to events such as the Summer Olympics in Paris. In Asia Pacific (excluding Greater China), RevPAR increased by 10%, highlighting the rebound in international travel in the region.
Openings and development
In the third quarter, Hyatt added 16 new hotels, totaling 2,589 rooms to its portfolio. Notable openings included Alila Shanghai, Brunfels Hotel, Grand Hyatt Kunming, and Park Hyatt Marrakech. The company also announced a partnership with Under Canvas, which will feature 13 outdoor resorts.
As of September 30, 2024, Hyatt has a robust pipeline of executed management or franchise contracts for approximately 690 hotels, totaling around 135,000 rooms.
Transactions and financial strategy
Hyatt reported that it has exceeded its asset-disposition commitment, generating $2.6 billion in gross proceeds over the last three years. The company also completed the acquisition of Standard International for approximately $150 million, with additional contingent considerations.
Looking forward, Hyatt is set to enter a long-term joint venture with Grupo Piñero, investing about €359 million to manage 23 all-inclusive resorts, adding approximately 12,000 rooms to its portfolio.
Financial outlook for 2024
Hyatt has provided an updated outlook for the fiscal year 2024, projecting a full-year RevPAR increase of 3.0% to 4.0% on a constant currency basis compared to 2023. The company anticipates net income in the range of $1,400 million to $1,450 million and adjusted EBITDA between $1,100 million and $1,120 million. Additionally, Hyatt plans to return approximately $1,250 million to shareholders through dividends and share repurchases.
Hyatt Hotels Corporation continues to exhibit resilience and growth in the hospitality sector, driven by strong demand, strategic expansions, and sound financial management, all contributing to shareholder value and the company's market position.
Marriott International Reports Steady Growth in Third Quarter 2024
Marriott International has published its financial results for the third quarter of 2024, indicating stable performance across key metrics and ongoing expansion in its global portfolio.
Key Financial Highlights
In the third quarter of 2024, Marriott's comparable systemwide RevPAR (Revenue Per Available Room) rose by 3.0% compared to the same quarter in 2023. This growth included a 2.1% increase in the U.S. and Canada, and a stronger 5.4% increase in international markets. The company reported a diluted earnings per share (EPS) of $2.07, down from $2.51 in the prior year, while the adjusted diluted EPS increased to $2.26 from $2.11.
The reported net income for the quarter was $584 million, compared to $752 million in the same quarter last year, while adjusted net income increased slightly to $638 million from $634 million. Adjusted EBITDA for the third quarter reached $1,229 million, up from $1,142 million in the previous year.
“Marriott had another solid quarter, highlighted by strong net rooms and fee growth, robust development activity and a 3 percent increase in global RevPAR[1]. Third quarter international RevPAR rose 5.4 percent, led by meaningful gains in APEC and EMEA with resilient domestic and cross-border demand, as well as solid ADR growth. RevPAR in the U.S. & Canada increased more than 2 percent compared to the year-ago quarter, with ADR up 2.3 percent. “Group remained the standout customer segment, with global group RevPAR rising 10 percent in the quarter and on pace to rise 8 percent for full year 2024. RevPAR for the business transient segment continued to grow nicely in the quarter, while leisure transient RevPAR was flat year over year, but still well ahead of pre-pandemic levels.” - Anthony Capuano, President and Chief Executive Officer
Growth and Development
During the quarter, Marriott added approximately 16,000 net rooms, bringing its total global system to nearly 9,100 properties with about 1,675,000 rooms. At the end of the quarter, the development pipeline included 3,802 properties, equating to approximately 585,000 rooms.
Looking ahead, Marriott's outlook for the fourth quarter includes expectations of RevPAR growth between 2% and 3% and a net rooms growth of approximately 6.5%. For the full year, gross fee revenues are projected between $5.126 million and $5.146 million, with a robust capital return to shareholders anticipated at around $4.4 million.
Capital Strategy
Marriott continued its strategy of returning value to shareholders by repurchasing 4.5 million shares for around $1 billion during the quarter. Year-to-date, the company has returned $3.9 billion to shareholders through dividends and share repurchases. Additionally, Marriott has issued senior notes to enhance its balance sheet and support ongoing business operations.
Marriott International's third-quarter results reflect a stable performance in a recovering travel market. With continued investments in growth and development, along with strategic capital returns, Marriott is positioned for ongoing evolution in the global hospitality sector
Choice Hotels International reports strong third quarter 2024 performance
Choice Hotels International, Inc. has released its third quarter 2024 results, showcasing solid financial performance and growth. The company reported total revenues of $428 million for the quarter, representing a 1% increase compared to the same period last year.
Financial Highlights
- Net Income: The net income for the quarter was $105.7 million, a 15% increase year-over-year, resulting in diluted earnings per share (EPS) of $2.22.
- Adjusted Net Income: Adjusted net income, excluding certain items, reached $106.2 million, which corresponds to an adjusted diluted EPS of $2.23, up 23% from the third quarter of 2023.
- Adjusted EBITDA: The company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to $177.6 million, reflecting a 14% growth from the previous year.
This performance can be attributed to increased demand across Choice Hotels' various segments, particularly in the upscale, extended stay, and midscale categories. The company’s growth in units has also contributed positively to revenue.
Growth and development
The total global development pipeline now includes over 110,000 rooms, marking an 11% increase from the previous year, with a significant rise in conversion rooms.
The company experienced a 75% increase in hotel openings compared to the same quarter last year, reflecting its expansion strategy and commitment to enhancing its presence in the market.
Shareholder returns
Choice Hotels has focused on returning value to shareholders. Year-to-date, the company repurchased 2.9 million shares of common stock for $352.9 million.
"Choice Hotels generated another quarter of record financial performance, demonstrating the successful execution of our growth strategy and giving us the confidence to raise our full-year guidance," "We accelerated our unit growth, increased our global pipeline to new levels, expanded our international reach, and significantly grew the size of our rewards program. The positive momentum we have created and the strength of our versatile business model bolsters our ability to continue to deliver sustained top-line and earnings growth while returning significant capital to shareholders." - Patrick Pacious, President and Chief Executive Officer.
Looking ahead
The outlook for the remainder of 2024 appears positive, with expectations for continued growth in both net income and adjusted EBITDA. The company plans to implement strategies aimed at leveraging the momentum gained in the third quarter while enhancing operational efficiencies and expanding its market reach.
Minor Hotels: Explosive Growth and Record Financial Results Driven by Europe and Thailand in Q3 2024
Minor Hotels has posted strong growth in its Q3 2024 results, with a core net profit of THB 3.1 billion for the first nine months of the year, reflecting a 13% increase compared to 2023. Revenue reached THB 100.2 billion, an 11% year-on-year increase, surpassing forecasts and highlighting the strength of the group’s revenue optimization strategy, particularly in Europe and Thailand.
Sustained Growth in Europe and the Americas
In Europe and the Americas, Minor Hotels recorded a 10.9% increase in revenue, totaling EUR 1,789 million for the first nine months of 2024. This performance was driven by a 9% increase in RevPAR, fueled by a 7% rise in the Average Daily Rate (ADR). The high season particularly benefited growth in Spain, Central Europe, and the Benelux region, with strong demand from visitors from the United States and the United Kingdom.
The ADR for the region grew 6.2% year-on-year to EUR 146, with Spain and Central Europe posting the strongest performance across the portfolio. RevPAR increased by 8%, reaching EUR 101, highlighting Minor's targeted pricing strategy and sustained demand in high-growth regions.
The third quarter continued this upward trend with revenue of EUR 644 million, up 10% compared to Q3 2023, driven by a 7.3% increase in ADR to EUR 152. This ADR increase accounted for 83% of RevPAR growth, and both Spain and Central Europe showed particularly strong performance, driven by higher bookings during peak demand periods. This performance also led to a significant 52% increase in recurring net profit, totaling EUR 141 million.
Thailand’s Dynamism and Expansion in Asia
Despite the low season, Thailand saw a 12% growth in RevPAR in Q3, driven by a 9% increase in ADR and a 66% occupancy rate. Thailand benefited from strong international and domestic demand, supported by the group’s yield optimization strategy. In Asia, the group continued its expansion with new NH and NH Collection brand openings in Sri Lanka and Thailand, supporting its management-focused strategy aimed at profitability and expansion in high-growth markets.
Growth Outlook
Minor Hotels is preparing for a strong high season, with increased demand in Thailand, Bali, and Europe. Leveraging the high demand for both business and leisure travel, the group is well-positioned to capitalize on these favorable trends and strengthen its market position.
"Our exceptional performance this quarter underscores the strength of our strategy focused on high-growth markets and our agility in adapting to evolving travel dynamics. The strong expansion in Europe, coupled with Thailand's ongoing recovery, is a testament to the success of our revenue optimization initiatives and our unwavering commitment to delivering exceptional guest experiences. As we approach the high season, we are well-positioned to capitalize on growing demand, ensure sustained growth, and deliver substantial value to our stakeholders." - Dillip Rajakarier, CEO of Minor Hotels and Group CEO of Minor International
Logis Hôtels Group: Strong Growth in 2024 and Enhanced Ambitions for 2025
Logis Hôtels Group posts solid financial results with a projected turnover of €263 million for 2024, marking a 10% increase compared to the previous year. This growth is supported by several strategic initiatives, including the development of the premium segment and the expansion of high-end brands.
2024 Performance:
- Revenue Growth: The group has maintained continuous growth over the past six years, with a 10% increase in revenue to date, and a record projected result for the end of the year.
- Price Management: In response to inflation, Logis Hôtels has managed to increase its rates in a controlled manner (+5%), strengthening the purchasing power of its clients and reinvesting this value back into the network.
- Key Performance Indicators:
The ETIK loyalty program grew by 16% over the past year, with 600,000 members, supporting direct sales (+14%) and reducing reliance on OTAs, whose performance has stagnated (+3%).
Sales, both leisure and business, have also increased, notably thanks to the success of the Soirée Étape package (+26%).
- Impact of 2024 Events: The positive impact of the Olympic and Paralympic Games boosted summer performance, particularly for destinations close to Paris, attracting an international clientele, which represents over a third of the group’s customers this year.
Strategy and Outlook for 2025
For 2025, Logis Hôtels Group is implementing a strategy to strengthen its urban presence and attract new investors. Focus will be placed on developing the Urban Style brand, with an offering tailored to both business and leisure clients, aiming to reach 30 new locations by the end of 2025. This brand will be divided into two segments: Urban Style Signature (high-end) and Urban Style Appart (long stays). The group will also continue expanding its premium brands, Demeures & Châteaux and Singuliers Hôtels, with strong growth in both revenue and customer loyalty. Meanwhile, Logis Hôtels will continue to focus on decarbonization and sustainability, with initiatives to reduce its environmental impact.
Commitment to Sustainability:
Logis Hôtels is also emphasizing decarbonization and energy transition, with notable efforts in sustainable restaurant management and the continued implementation of the Act-Eco indicator, adopted by more than 80% of its network.
"2024 is a unique year. In addition to our TV investments, the famous 'Olympic effect' helped boost the performance of a rather mixed summer by around +10%, with a prolongation into the Indian summer thanks to the Paralympics. On the other hand, it significantly benefited destinations less than 2 hours from Paris, attracting a high proportion of international clientele, which now represents just over a third of our customers this year. The challenge now is to continue attracting and retaining them," says Karim Soleilhavoup, CEO of Logis Hôtels Group.
