As the month of July draws to a close, the major multinationals take stock of their financial results and performance for the first quarter of 2023.
Accor records strong growth across all its brands
The Accor group reported sales of 2,402 million euros, up 35% on the first half of 2022. Sales in the Premium, Midscale and Economy division rose by 34%, and in the Luxury and Style division by 40%.
"Our first-half sales growth was very solid for all our brands and in all our markets. These good performances are underpinned by the rigorous execution of our strategy, the attractiveness of our brands and the commitment of our teams. This momentum is set to continue over the coming months, driven by sustained demand for both leisure and business travel. It enables us to revise our 2023 objectives upwards, and to continue investing in our brands, our talent and our digital tools" - Sébastien Bazin, Chairman and CEO of Accor.
Overall RevPAR for the first half of 2023 increased by 38% compared with the first half of 2022. RevPAR in the Premium, Mid-range and Economy divisions rose by 26%, and in the Luxury and Lifestyle division by 24%.
EBITDA for all brands for the first half of 2023 is 447 million euros, more than double the figure for the first half of 2022. EBITDA for the Premium, Mid-range and Economy division is 330 million euros, up 71%, while EBITDA for the Luxury and lifestyle division is 174 million euros, up 176%.
Expected RevPAR growth for 2023 is now between 15% and 20% for the full year, and Group EBITDA between €930 and €970 million (previously €920 and €960 million) for the full year, given the current macroeconomic uncertainties.
NH sees strong rebound, exceeding pre-pandemic figures
NH Hotel Group, a subsidiary of Minor Hotels, closed the first half of 2023 with total sales of 1,026.7 million euros and total net profit of 45 million euros, both exceeding pre-pandemic figures. The operational improvement extended to all destinations, enabling the company to offset some of the cost increases.
In the period from January to June, the hotel chain exceeded its 2022 sales target by 38.3% (reaching 742.4 million euros) and its 2019 sales target by 25% (reaching 822 million euros). These results are attributed to an 18.5% improvement in average daily rate and a 44% increase in RevPAR.
Between January and June 2022, the average daily rate stood at 114 euros, rising to 135 euros per night for the same period in 2023. In addition, RevPAR reached 89 euros per night, up from 62 euros and 72 euros per night during the equivalent periods in 2022 and 2019, respectively.
NH achieved a total net profit of 45 million euros, a significant improvement on the loss of 15.4 million euros in the first six months of 2022. This also represents a 13% increase on the 40 million euros earned in the same period of 2019. Operational improvement was seen across all destinations, and the chain pointed out that "cost discipline has enabled recurring EBITDA of 267.6 million euros for the first half of 2023", marking substantial year-on-year growth of 43.3%. This figure also exceeds the 257 million euros reported for the first half of 2019.
CapitaLand Ascott Trust (CLAS) reports solid growth thanks to strong operating performance
CapitaLand Ascott Trust's (CLAS) gross profit for the first half of 2023 recorded a 31% increase over the first half of 2022, reaching S$154.4 million.
This revenue growth of 30% for the first half of 2023, reaching S$346.9 million, is attributed to the strong operating performance of CLAS properties and the continued recovery in travel.
This increase in revenue and gross margin is also due to additional contributions from the 14 quality operating assets acquired by CLAS in fiscal 2022 and the second quarter of 2023, which are mainly longer-term assets. Revenues and gross profit for the first half of 2023 increased by 26% and 25% respectively compared with the first half of 2022.
CLAS REVPAU increased 44% year-on-year to S$138 in the first half of 2023.
"We expect continued demand for CLAS properties, as international arrivals should continue to recover to between 80% and 95% of pre-pandemic levels by the end of 2023. We also expect international travel to accelerate as air capacity increases. Despite macroeconomic uncertainties, CLAS's performance should remain solid thanks to our geographic diversification, our range of lodging asset classes and our different types of contracts." - Ms. Serena Teo, Managing Director of CLAS Managers
Meliá thrives on solid financial results and expansion
Meliá Hotels International achieved a positive consolidated net result of €46.2m (compared with €3.7m in 2022) and closed the half-year at EBITDA level with €218.5m (+33.8%), pointing to the achievement of at least €475m - excluding capital gains - which the Group Chairman pledged to achieve at the recent AGM. Consolidated revenues excluding capital gains (€909.7m) increased by +22.7% year-on-year in June compared to H1 2022, and by +9.3% in Q2 on a like-for-like basis (€513.7m), already exceeding those achieved in the same period in 2019, marking an excellent Q2.
Occupancy rates and rates are expected to be slightly higher than last summer, which is particularly positive for Spanish and European holiday and leisure destinations. However, hotels located in urban areas in the business sector are experiencing some difficulties, although they are improving on last summer's results.
The Group has signed 16 hotels for the first six months to July, reaffirming its commitment to sign a minimum of 30 new hotels with 7,000 rooms, and has opened 8 establishments in Tanzania, Albania, Vietnam and Thailand. Other major openings are expected before the end of the year in Milan, Mexico and Barcelona.
"The sustained improvement in demand, with 34.56% more bookings recorded for this season in Spanish holiday hotels -in monetary terms- compared to the same dates in 2019, also exceeding those of 2022 by double digits, and the positive outcome of commercial campaigns such as the recent "Wonder Week" -which generated 18% more bookings compared to the previous year- allow us to reaffirm, with cautious optimism, our expectations of reaching at least 475 million Ebitda without capital gains in 2023, also exceeding the revenues and net profit achieved in the previous year. " - Gabriel Escarrer Jaume, Chairman and CEO of Meliá Hotels International
In conclusion, the hotel sector has demonstrated a strong rebound and positive growth in the first half of 2023 for major hotel groups. Despite ongoing macroeconomic uncertainties, these hotel groups are optimistic about the future, expecting demand to remain strong and new investments to be made in their brands and assets. The outlook for the second half of 2023 remains promising for the hotel industry as it continues to adapt and thrive in the post-pandemic landscape.
IHG sees strong results overall, as well as excellent growth in its high-end brands
IHG Hotels & Resorts finished the first half of 2023 with $15.2 billion in total gross revenue, which corresponds to a 29% increase vs. 2022 and a 12% one vs. 2019. In terms of adjusted EBITDA, IHG reported a total of $996 million in the semester just gone, up 23% from last year.
The company’s RevPAR was up 24% compared to the same period last year and showed sequential growth vs. 2019 in both quarters of 2023. The lifting of travel restrictions in Greater China played a significant role in year-on-year growth, with the region’s RevPAR coming in at +94% vs. H1 2022.
IHG opened 21,000 rooms (108 hotels) and signed 34,200 rooms (239 hotels) in H1 2023, a year-on-year increase of 40% and 11%, respectively. More than a quarter of all signings were made across the company’s six luxury and lifestyle brands.
"I am honoured to take over as IHG’s group CEO and excited to look ahead with our talented teams and owners all around the world to an important next chapter of growth. Our teams have delivered strong results in the first half, with financial performance, hotel openings and signings all significantly above prior year comparisons. Travel demand is very healthy, with RevPAR improving year-on-year across all our markets and exceeding 2019 pre-pandemic peaks for four consecutive quarters. In the Americas and EMEAA regions, leisure demand has remained buoyant, and business and group travel continued to strengthen, while in Greater China, demand has rebounded rapidly." - Elie Maalouf, CEO of IHG Hotels & Resorts