As the end of July approaches, it is the moment for global hotel companies to begin publishing their financial results and performances for Q2.
Hilton continues to benefit from its large global presence
Following a strong performance in Q1, Hilton has followed this up with another impressive financial display. For the second quarter running, the company has raised its full year 2023 outlook.
Hilton reported a 12.1% RevPAR increase versus Q2 2022 and a 9.3% increase vs. the same period in 2019. In terms of revenue, Adjusted EBITDA was $811 million for the quarter just gone (+19.4% vs. Q2 2022), exceeding the high end of guidance. As for net income, it came in at $413 million for Q2 2023.
Hilton opened 14,000 rooms during the second quarter for a net room growth of 11,200 keys in the company’s system.
36,000 new rooms were approved for development, thus growing the company’s pipeline to 440,900 rooms as of 30/06/2023 (up 7% compared to the same date last year).
In May 2023, Hilton launched Project H3, a new apartment-style extended-stay brand.
For the full year 2023, Hilton’s system-wide RevPAR is expected to increase between 10% and 12% vs. 2022. Similarly, Adjusted EBITDA is now projected to be between $2,975 million and $3,025 million.
System-wide comparable RevPAR continued to expand throughout the quarter, experiencing growth across all of our customer segments and regions, driven by strong preference for our brands. Our top line performance yielded meaningful bottom-line results, as we exceeded the high end of our guidance for Adjusted EBITDA and diluted EPS, adjusted for special items. We continue to drive long-term growth of our global network through the launch of strategic, new brands and have already added over 60,000 rooms to our development pipeline during 2023.
Christopher J. Nassetta, President & CEO of Hilton
Wyndham Hotels & Resorts keeps up steady growth
For Wyndham, global RevPAR grew by a reported 7% when compared to Q2 2022. Regarding revenues, Adjusted EBITDA was $158 million compared to $175 million in second quarter 2022, representing an 8% year-over-year increase.
Net income, on the other hand, declined in Q2 2023. It was down $22 million to a total amount of $70 million over the second three months of 2023.
Wyndham signed 24,000 rooms during the period, which equates to 6% growth vs. Q2 2022 and 7% growth compared to the same period in 2019.
In July 2023, the company was awarded 60 new construction projects for ECHO Suites Extended Stay by Wyndham. Its total number of contracts now stands at 265.
It should be noted that comparisons with Wyndham’s second quarter results are impacted by the sale of its owned hotels and the exit of its select-service management business, both of which occurred in 2022.
During the second quarter, we celebrated the tremendous progress we’ve made in our five-year journey as a new public company with another quarter of solid results including global RevPAR growth of 7%, net room growth of 4% and the 12th consecutive quarter of sequential growth in our development pipeline, which has never been stronger. International travel demand continues to accelerate, our US economy brands continue to outperform the industry and our nation’s infrastructure bill spend is expected to represent a meaningful tailwind for our franchisees in the months and years ahead. We remain very confident in our ability to deliver outstanding value for our franchisees and shareholders, as does our Board of Directors who today approved a $400 million increase in our share repurchase authorisation, reflecting their confidence in the ongoing strength of our business and our strong free cash flow.
Geoff Ballotti, President & CEO of Wyndham Hotels & Resorts
Meliá Hotels International continues to see demand
For the 4th consecutive quarter, Meliá has seen its RevPAR surpass that of 2019. In the quarter just gone, RevPAR for owned and leased properties grew by 15.4% on a year-to-year basis compared to Q2 2022, and by 25.5% compared to the same period in 2019.
The company’s net income for Q2 2023 was reported at €49 million, thus confirming a return to operating normality.
Consolidated revenue in the quarter came in at €513.7 million, however there is still room for growth considering occupancy figures were down 7.7% vs. pre-Covid levels.
At the end of the quarter, Meliá’s reservations on the books to year end are up more than 20% on the global figures for 2022.
Gabriel Escarrer Jaume, Chairman & CEO of Meliá Hotels International stated: "The Group's performance in the first half of the year continued to benefit from the recovery dynamics that began 15 months ago now, with the second quarter recording a very positive level of revenue, and so far, we have not seen any signs of a slowdown despite macroeconomic uncertainty."
Marriott’s portfolio grows with the completion of the City Express transaction
The world’s leading hospitality company saw its comparable systemwide constant dollar RevPAR increase by 13.5% worldwide, compared to Q2 2022. In international markets alone, its RevPAR grew by 39.1% vs. the same period last year.
In terms of revenue, Marriott recorded an adjusted EBITDA of $1,219 million in 2nd quarter 2023 (vs. Q2 2022’s $1,019 million). Reported net income in the quarter just gone totalled $726 million, compared to $678 million in the same period 2022.
Marriott added approximately 33,100 rooms globally in Q2 2023, including 17,300 rooms in the Caribbean & Latin America region associated with the City Express transaction. Furthermore, the company added more than 2,800 conversion rooms to its portfolio.
At the end of Q2 2023, Marriott’s global development pipeline stands at more than 3,100 properties and nearly 547,000 rooms.
"With continued momentum in demand for global travel, we posted another quarter of outstanding results. […] While conditions could change rapidly, booking trends remain solid. We are raising our full year rooms growth and earnings guidance and now expect to return $4.1 billion to $4.5 billion to shareholders in 2023," declared President & CEO Anthony Capuano.
Hyatt reports record level of total fee revenue for a single quarter
The US company’s comparable system-wide RevPAR increased 15% in Q2 2023 vs. the same period last year. It was also up 8% compared to second quarter 2019.
Adjusted EBITDA came in at $273 million for Hyatt, up $18 million from Q2 2022. This financial increase is also visible in adjusted net income, which stood at $88 million, compared to $51 million in the previous comparable quarter.
These performances generated a record level of total management, franchise, license, and other fees of $248 million (+21% vs Q2 2022).
Hyatt recorded net rooms growth of 6.9% in Q2 2023. Finally, the company’s pipeline of executed management or franchise contracts expanded to 119,000 keys.
Mark S. Hoplamazian, President & CEO of Hyatt, commented: "For the fifth consecutive quarter we posted record results demonstrating our unique positioning and continued momentum. System-wide RevPAR expanded 15% year-over-year, generating a record level of total fee revenue in the quarter. We updated our full year RevPAR outlook, and we expanded our pipeline to 119,000 rooms, representing approximately 40% of our existing portfolio. Our outlook remains optimistic, fuelled by strong group booking activity during the quarter, resulting in 2024 group pace up 10%. We believe our increasing asset-light earnings mix and free cash flow define a clear path for continued success and enhanced shareholder value into the future."
Choice enjoys a new quarterly record for total revenues
Choice Hotels International’s RevPAR for Q2 2023 increased 50 basis points vs. the same period in 2022, driven by a 2.8% increase in average daily rate.
As regards revenue, the franchisor recorded a quarterly adjusted EBITDA record of $153.1 million, which corresponds to a 18% increase compared to Q2 2022. In the same vein, Choice’s total revenues for the quarter came in at $427.4 million, a 16% increase vs. second quarter of 2022 and also a quarterly record.
Choice’s global pipeline grew over Q2 2023 by 10% to surpass 93,000 rooms. Its global rooms pipeline for conversion hotels rose by 14% and its domestic rooms pipeline for conversion hotels rose by 10%, both versus the franchisor’s reportings dated 30/06/2022.
Patrick Pacious, President & CEO, said: "Choice Hotels generated record revenues, fuelled by our best-in-class hotel conversion and reservation-delivery capabilities as well as our success in integrating Radisson Hotels Americas ahead of schedule. The exceptional speed with which we are able to move conversion projects through the pipeline has driven impressive revenue-intense hotel openings in the first half of 2023 and further strengthened our award-winning brand portfolio, reinforcing our confidence in the company's ability to drive significant growth in 2023 and beyond."