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David Eisen

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  • 5 min

Group, business travel shine for Marriott as leisure levels off

💰 Marriott International reported a third-quarter net income drop of $168 million YOY, despite a global RevPAR increase of 3%, with international markets leading. The company's development pipeline includes 3,800 properties with 585,000 rooms, and net rooms grew by 6% YOY. Group business RevPAR rose 10% YOY, with full-year 2024 projections up 8%. Business transient segment RevPAR also increased by 2% YOY, whereas leisure transient RevPAR remained stagnant. Marriott's focus is shifting to midscale with the City Express by Marriott brand, despite higher growth in luxury segments. The third quarter saw over 30% of room additions through conversions, and a multiunit deal with Sonder added 9,000 rooms, with 1,000 more in the pipeline. The company anticipates annual savings of $80-$90 million starting in 2025 from G&A cost reductions and continues its asset-light strategy by selling owned properties. Marriott Bonvoy's membership reached 219 million.
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  • 7 min

The hotel leisure transient boom may be over, but there are still reasons to cheer, Hyatt points to

🏨 Hyatt Hotels Corp. saw leisure transient revenue decline by about 4% in Q3, with flat revenues through the first nine months of 2024 compared to 2023. However, group rooms revenue increased 6% in Q1 of 2025, with U.S. and European markets performing strongly. Business transient revenue is up approximately 16% year-over-year. System-wide RevPAR (Revenue Per Available Room) increased by 3% in comparison to 2023, supported by a net rooms growth of 4.3%. New openings include the Park Hyatt Marrakech and the Alila Shanghai. Hyatt's pipeline consists of around 135,000 rooms, and net income reached $471 million. Membership in the World of Hyatt loyalty program has surpassed 50 million. The company noted a slowdown in new construction starts, although construction starts in China have risen in the last two quarters. Hyatt is forming new lifestyle and luxury groups, with Amar Lalvani leading the former. Attrition rates for rooms are higher than expected at about 1.5% for the year. For Q1 of 2025, Hyatt expects over 6% net rooms growth year-over-year. Hyatt has recently entered a strategic joint venture with Grupo Piñero and has sold several assets, including the Hyatt Regency Orlando for approximately $1.07 billion.
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  • 3 min

Hyatt stretches tentacles further into all-inclusive space via Grupo Piñero JV

🏖️ Hyatt, in a joint venture with Spain's Grupo Piñero, will manage all Bahia Principe hotels and resorts, expected to increase Hyatt’s all-inclusive portfolio by 30%. This includes 23 resorts with over 12,000 rooms in the Dominican Republic, Mexico, Jamaica, and Spain. The deal includes the ownership of the Bahia Principe brand and the Cayo Levantado Resort. Julio Pérez will remain CEO; Encarna Piñero will be the chairman. The transaction aims to enhance Bahia Principe resorts and expand opportunities globally.
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