LODGING Staff - 10 Minutes News for Hoteliers - Page 155

2 min

STR, TE Slightly Adjust 2024-2025 U.S. Hotel Forecast

💰 NASHVILLE—STR and Tourism Economics adjusted their 2024-25 U.S. hotel forecast, with 2024 ADR gains downgraded by 0.1 percentage points, RevPAR steady at +2.0%, and occupancy upgraded by 0.2 percentage points. For 2025, occupancy growth projections increased by 0.2 percentage points; ADR and RevPAR forecasts remained at +2.0% and +2.6%, respectively. Economic factors may affect travel with slower growth expected in 2024 but moderate travel growth anticipated due to factors like strong household balance sheets. Midscale and economy hotels face challenges from fewer lower-income travelers, while high-income travel is constrained by increased outbound travel and a strong dollar. GOP and EBITDA margins are projected to improve slightly year over year, with 2025 labor costs forecasted to decrease, especially in upper-midscale chains, projected at $168 lower than luxury chains.

5 min

Hyatt Hotels Corporation Reports Q2 2024 Results

💸 Hyatt Hotels Corporation reported a 4.7% rise in system-wide RevPAR and a 4.6% net rooms growth in Q2 2024. Net Income hit $359 million with $158 million adjusted. The pipeline reached a new record of approximately 130,000 rooms, showing a 9% year-over-year increase. The World of Hyatt loyalty program grew by 21% to 48 million members. In Q2, the company added 18 new hotels with 3,251 rooms. There were notable property sales and a brand acquisition, with $1.5 billion of the $2.0 billion asset sell-down commitment realized. Total liquidity stood at approximately $3.5 billion as of June 30, 2024. The company issued $450 million of 5.250% senior notes due 2029 and $350 million of 5.500% senior notes due 2034. A dividend of $0.15 per share is payable on September 10, 2024.

4 min

GBTA and Cvent Study Finds an Opportunity for Tech Integration to Transform Business Travel

📃 In a study by GBTA and Cvent, 88% of TMCs, 74% of suppliers, and 59% of buyers believe their organization handles technology well, but recognize room for integration of AI and blockchain. While tech spending is generally flat, 61% of suppliers and 83% of TMCs plan to increase tech investment, especially in Europe. About 29% of travel programs have a dedicated tech employee. Hotels largely use tech for operations, with 95% employing a Property Management System and at least two-thirds satisfied with their technology. Survey data was collected from 388 North American and European travel professionals between February 6-19, 2024.

2 min

Visual Matrix’s MOP Tech Increases Adoption by 440 Percent

💸 Visual Matrix's MOP technology experienced a 440% growth since November 2021, now deployed in over 1,000 hotels across 33 brands, including Wyndham, Hilton, Marriott, and IHG. MOP, a mobile housekeeping and maintenance solution, enhances operational efficiency through real-time updates, reducing reliance on physical trips to the front desk. It features labor-saving tools, emergency panic buttons with geolocation, and an integrated texting system for guest communication. The multi-language platform aims to streamline hotel operations and reduce paper and ink usage.

3 min

IHG Hotels & Resorts Reports Half-Year Results

💰 IHG Hotels & Resorts reported 2024 half-year results with a +12% increase in operating profit and Adjusted EPS. Global RevPAR grew by +3.0%, while the Americas saw +1.7%, EMEAA +7.5%, and Greater China dipped -2.6%. The total gross revenue reached $16.1 billion, marking a +6% growth. IHG opened 18,000 rooms, leading to a global estate of 955,000 rooms across 6,430 hotels, and signed 57,100 new rooms (+67% YOY). A significant achievement was the $800 million share buyback program, already 47% completed by June 30, 2024, and an interim dividend increase of +10% to 53.2¢. With adjusted free cash flow at $132 million and a net debt increase of $510 million, IHG remains on track to return over $1 billion to shareholders in 2024.

2 min

This Week’s Comings & Goings

📢 Christopher Tatum appointed divisional president of Aimbridge Hospitality's Full Service division. Sam Basu named area general manager of Marriott's Puerto Rico properties and GM of The Ritz-Carlton, San Juan. Kimpton Sawyer Hotel's new executive chef, Sam Shafer, previously banquet manager. Newport Harbor Island Resort's executive chef Jaysen Elrod to manage culinary operations. Kal Harris takes over as director of food and beverage at Hotel Haya. Kevin Denman becomes general manager of Panzano at Kimpton Hotel Monaco Denver. Moxy Asheville's Wildwood Still hires Austin Tisdale as executive chef and Christina Baer as food and beverage director. Springboard Hospitality promotes Chance Reno, Desiree Gardea, Karla Roque, and Tim Erkelens-Probst to GMs of West Hollywood properties. InterContinental Cleveland welcomes Omar Jones as Cluster executive chef and Thomas Francescangeli as executive pastry chef.

2 min

Valor Hospitality Partners Assumes Operation of Hilton Garden Inn Haymarket

🏢 Valor Hospitality Partners expanded its global portfolio by taking over Hilton Garden Inn Haymarket in Haymarket, Virginia. The hotel features 117 guestrooms, a fitness center, business center, and 2,570 square feet of event space. Amenities include two on-site restaurants – the Red House Tavern and Crossroads Cafe. This strategic location offers access to Washington D.C., Manassas, Middleburg, and the Blue Ridge Parkway for both business and leisure travelers.

6 min

Hilton Releases Q2 2024 Results

🏡 Hilton Worldwide Holdings Inc. reported Q2 2024 results with an adjusted EBITDA of $917 million, a net income of $422 million, and a diluted EPS of $1.67, adjusted to $1.91. System-wide comparable RevPAR increased by 3.5%, with a significant 15% growth in the development pipeline compared to June 30, 2023, now totaling 508,300 rooms. Hilton acquired the Graduate Hotels brand and announced a partnership with Small Luxury Hotels of the World, adding 18,000 rooms. They repurchased 3.5 million shares, totaling a capital return of $1.774 billion year to date through August. Full-year 2024 projections include a system-wide RevPAR increase of 2-3%, a net income between $1,532 million and $1,555 million, and an Adjusted EBITDA between $3,375 million and $3,405 million, with a capital return of approximately $3.0 billion.

Aimbridge Names Christopher Tatum Full Service Division President

📅 Christopher Tatum was appointed as the new divisional president of Aimbridge Hospitality's Full Service division in Plano, Texas. He brings four decades of experience, primarily from Marriott International, to his new role where he will lead the division that includes Full Service, Evolution Lifestyle, Luxury, and Resort properties in the U.S., Canada, and the Caribbean. Prior to Aimbridge, he was the president and CEO of the Hawaii Tourism Authority and recently managed a portfolio at Davidson Hospitality.

2 min

2024 Guide to Franchising

🏨 BWH Hotels, as of March 31, 2024, boasts a global presence of 3,899 properties with 2,113 located in the U.S. The company offers a rewards program, including Best Western Rewards® and WorldHotels Rewards℠. Franchising since as early as 1946 for Best Western®, they have a variety of brands across chain scales from economy to luxury, each with specific franchising fees such as a $49,000 application fee for Aiden® and royalty rates like 5% of GRR for Best Western Premier®. The total rooms in the system across brands reach numbers like 127,209 for Best Western® and 3,185 for Aiden®.

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