Marriott International Reports Third Quarter 2024 Results
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Hyatt Reports First Quarter 2024 Results
/Hyatt Hotels Corporation ("Hyatt" or the "Company") (NYSE: H) reported first quarter 2024 results. Highlights include:
Comparable system-wide hotels RevPAR increased 5.5% compared to the same period in 2023
Comparable system-wide all-inclusive resorts Net Package RevPAR increased 11.0% compared to the same period in 2023
Net Rooms Growth was approximately 5.5%
Net Income was $522 million and Adjusted Net Income was $75 million
Diluted EPS was $4.93 and Adjusted Diluted EPS was $0.71
Adjusted EBITDA was $252 million
Pipeline of executed management or franchise contracts was approximately 129,000 rooms
Repurchased approximately 2.5 million shares of Class A and Class B common stock for an aggregate purchase price of $388 million
Full year comparable system-wide hotels RevPAR is projected to increase 3% to 5% on a constant currency basis compared to full year 2023
Full year Net Income is projected between $1,135 million and $1,195 million
Full year Adjusted EBITDA is projected between $1,150 million and $1,190 million and is in line with previously provided 2024 Outlook when adjusting for $30 million of reduced Adjusted EBITDA due to transactions
Full year Capital Returns to Shareholders is projected between $800 million and $850 million
Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt, said, "The year is off to a great start with gross fee revenue reaching a record of $262 million in the quarter. Our pipeline also reached a new record, expanding 10% year-over-year to 129,000 rooms, and we realized net rooms growth of 5.5%. World of Hyatt membership has grown by 22%, reaching a new record of 46 million members. Significant progress on asset dispositions is further expanding our asset-light earnings mix, reflecting our execution to permanently reduce owned real estate."
Accor - First-Quarter 2024 Revenue €1,236 million up 8% like-for-like
/Sébastien Bazin, Chairman and CEO of Accor, said:
"In this first quarter, marked by the Group's return in CAC 40, Accor once again delivered a solid performance, increasing revenue in all regions, notably in the Middle East and Asia-Pacific. Our network growth also accelerated, reflecting the attractiveness of our brands and the trust of our owners. By continuing to combine high standards with operational flexibility, quality of execution and financial discipline, we are confident in our ability to pursue a growth path that is in line with the objectives we have set for ourselves."
The first quarter of 2024 once again demonstrates the strength of hotel demand in all Accor Group regions and segments. Operating performance indicators (RevPAR and portfolio growth) are all trending positively, and the Group has continued to manage its balance sheet in line with its commitments.
In the first quarter of 2024, Accor opened 53 hotels corresponding to over more than 8,000 rooms, representing a net unit growth of 3.1% over the last12 months. At the end of March 2024, the Group had a hotel network of 825,313 rooms (5,613 hotels) and a pipeline of 224,000 rooms (1,297 hotels).
First-quarter 2024 RevPAR
The Premium, Midscale & Economy (PM&E) division posted an 8% increase in RevPAR compared with the first quarter of 2023, still more driven by rates than by occupancy rates.
The Europe North Africa (ENA) region reported a 5% increase in RevPAR compared with the first quarter of 2023.
In France, which represents 44% of the region’s room revenue, the Paris region and the provinces posted comparable RevPAR growth. RevPAR growth in March was particularly strong, benefiting from a higher number of events than in March 2023, and the absence of a major strike compared to the same period last year.
The United Kingdom, 13% of the region’s room revenue, posted RevPAR growth comparable to France, with an even balance between London and the provinces.
In Germany, 13% of the region’s room revenue, RevPAR growth was stronger than in France and the UK. This change reflects a steady improvement, and benefits from a more favorable base effect, as the activity recovery in the country was delayed as compared to the rest of Europe.
The Middle East, Africa and Asia-Pacific region reported a 12% increase in RevPAR compared with the first quarter of 2023.
The Middle East Africa region, 26% of room revenue in the region, continued to post solid RevPAR growth, driven by rates and benefiting in particular, in Saudi Arabia, from the Ramadan calendar, most of which was held in the first quarter of 2024.
South-East Asia, 30% of room revenue in the region, also reported strong RevPAR growth, driven in particular by Singapore and Thailand.
The Pacific, 27% of room revenue in the region, continued the trend observed in the fourth quarter of 2023, with RevPAR growth driven primarily by higher occupancy rates.
In China, 18% of hotel room revenue in the region, business continued to recover, albeit at a measured pace.
The Americas region, which mainly reflects the performance of Brazil (65% of room revenue for the region), posted a 4% increase in RevPAR compared with the first quarter of 2023. The activity, which had exceeded the occupancy recorded prior to Covid, posted a slight decline in demand. Nevertheless, this slight decline in occupancy was more than offset by higher average rates.
The Luxury & Lifestyle (L&L) division reported a 7% increase in RevPAR compared with the first quarter of 2023, mainly driven by higher occupancy.
The Luxury segment, 77% of the division's room revenue, posted a 6% increase in RevPAR compared with the first quarter of 2023. Being more exposed to North America than the other segments, Luxury RevPAR growth is slightly more modest, reflecting a more mature market.
The Lifestyle segment reported solid RevPAR growth of 10% compared with the first quarter of 2023. This was driven by improved occupancy at resorts in Turkey, Egypt and the United Arab Emirates.
Group revenue
For the first quarter of 2024, the Group reported revenue of €1,236 million, up 8% on a like-for-like basis (LFL) compared with the first quarter 2023. This increase breaks down into a 6% growth for the Premium, Midscale and Economy division and a 12% growth for the Luxury & Lifestyle division.
Scope effects, mainly linked to the acquisition of Potel & Chabot (in October 2023) in the Luxury & Lifestyle division (Hotel Assets and Other segment), positively contributed for €38 million.
Currency effects had a negative impact of €37 million, mainly due to the Australian dollar (-5%) and the Turkish lira (-40%).
Premium, Midscale & Economy revenue
Premium, Midscale & Economy, which includes fees from Management & Franchise (M&F), Services to Owner and Hotel Assets & Other of the Group's Premium, Midscale & Economy brands, generated revenue of €690 million, up 6% LFL compared with the first quarter of 2023. This increase reflects the sustained activity reported over the period, mitigated by a base effect in Services to Owner.
The Management & Franchise (M&F) revenue totaled €192 million, up 14% LFL compared with the first quarter of 2023. This increase, which was higher than the 8% rise in RevPAR over the period, reflects the strong growth in incentive fees provided for in management contracts, particularly in Asia-Pacific region. Management & Franchise performance by region is detailed on the following page.
Services to Owners revenue, which includes Sales, Marketing, Distribution and Loyalty activities, as well as shared services and the reimbursement of hotel costs, totaled €252 million, down (1)% LFL compared with the first quarter of 2023. This decline reflects a base effect on the same period last year, which included the final rebilling of costs incurred by Accor as part of its reception services for supporters during the soccer World Cup in Qatar.
Hotel Assets and Other revenue was up 9% LFL compared with the first quarter of 2023. This segment, which is strongly linked to activity in Australia and Brazil, reflects the level of activity recorded in these regions.
Luxury & Lifestyle revenue
Luxury & Lifestyle, which includes fees from Management & Franchise (M&F), Services to Owner and Hotel Assets & Other of the Group's Luxury & Lifestyle brands, generated revenue of €566 million, up 12% LFL compared with the first quarter of 2023. This increase also reflects the good activity performance over the period, as well as the opening of new venues at Paris Society.
Management & Franchise (M&F) revenue totaled €102 million, up 11% like-for-like compared with the first quarter of 2023, driven by a 7% increase in RevPAR and strong growth in incentive fees from management contracts. The performance of the Management & Franchise business by segment is detailed on the following page.
Services to Owners, which includes Sales, Marketing, Distribution and Loyalty activities, as well as shared services and the reimbursement of hotel costs, totaled €347 million, up 12% LFL compared with the first quarter of 2023.
Hotel Assets and Other revenue was up 13% LFL compared with the first quarter of 2023. This change on a like-for-like basis reflects the opening of the Abbaye des Vaux de Cernay hotel and new restaurant venues at Paris Society, while the reported change of +77% includes a significant scope effect linked to the acquisition of Potel & Chabot in October 2023.
Management & Franchise revenue
Management & Franchise (M&F) posted revenue of €294 million, up 13% LFL compared with the first quarter 2023. This change reflects RevPAR growth of 8% LFL vs. the first quarter of 2023 amplified by:
the sharp rise in incentive fees provided for in hotel management contracts, particularly in the Asia-Pacific and Lifestyle segments;
a termination fee for a breach of contract in the Premium, Midscale & Economy segment in the Americas.
Outlook
The Group confirmed its medium-term growth perspectives as disclosed during the Investor Day on June 27, 2023:
Annualized RevPAR growth between 3% and 4% (CAGR 2023-27)
Annualized net unit growth between 3% and 5% (CAGR 2023-27)
M&F revenue growth between 6% and 10% (CAGR 2023-27)
A marginally positive EBITDA contribution from Services to Owners
EBITDA growth between 9% and 12% (CAGR 2023-27)
Recurring free cash flow conversion in excess of 55%
A return to shareholders of around €3 billion over the 2023-2027 period
In the first quarter of 2024, Accor completed a €400 million share buyback program, with an accretive effect for shareholders through the cancellation of 3.9% of its shares.
Marriott International Reports First Quarter 2024 Results
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First quarter 2024 comparable systemwide constant dollar RevPAR increased 4.2 percent worldwide, 1.5 percent in the U.S. & Canada, and 11.1 percent in international markets, compared to the 2023 first quarter;
First quarter reported diluted EPS totaled $1.93, compared to reported diluted EPS of $2.43 in the year-ago quarter. First quarter adjusted diluted EPS totaled $2.13, compared to first quarter 2023 adjusted diluted EPS of $2.09;
First quarter reported net income totaled $564 million, compared to reported net income of $757 million in the year-ago quarter. First quarter adjusted net income totaled $620 million, compared to first quarter 2023 adjusted net income of $648 million;
Adjusted EBITDA totaled $1,142 million in the 2024 first quarter, compared to first quarter 2023 adjusted EBITDA of $1,098 million;
The company added roughly 46,000 net rooms during the quarter, including approximately 37,000 rooms under its agreement with MGM Resorts International;
At the end of the quarter, Marriott’s worldwide development pipeline totaled over 3,400 properties and nearly 547,000 rooms, including roughly 27,000 pipeline rooms approved, but not yet subject to signed contracts. More than 202,000 rooms in the pipeline were under construction as of the end of the first quarter;
Marriott repurchased 4.8 million shares of common stock for $1.2 billion in the first quarter. Year to date through April 26, the company has returned $1.7 billion to shareholders through dividends and share repurchases.
Accor - Full-Year 2023 Results
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Sébastien Bazin, Chairman and Chief Executive Officer of Accor, said:
“Accor generated record-high results in 2023, with EBITDA breaking the €1 billion mark for the first time in its history. While there were numerous reasons for this success, the solid performances were above all attributable to the Group’s teams. I would like to thank them for their commitment and their know-how in an industry whose strength lies above all in the women and men on the ground daily who raise the profile of our brands with a passionate and generous sense of hospitality. Over the past year, the Group achieved growth in all segments and geographies, illustrating the strength of its asset light model, the efficiency of its organization based on the two divisions, Premium, Midscale and Economy on the one hand, and Luxury and Lifestyle on the other, the desirability of its brands, the strength of its distribution and loyalty tools, as well as its financial discipline.
While the geopolitical backdrop remains complex, 2024 is set to be rich in major international events which should continue to fuel growth and we start this new year with confidence. Accor is ideally positioned to continue its bold expansion and bring to life its vision of a pioneering, responsible hospitality industry that creates value for its shareholders and its partners.”
CHALET HOTELS LIMITED REPORTS THE BEST QUARTER EVER Q3FY24 RESULTS
/HIGHEST HOSPITALITY REVENUE at INR 3.4 bn, up 29% YoY
RevPAR up 18% YoY to INR 7,838
HOSPITALITY EBITDA Margin up by 5pp, to 46.3%
CONSOLIDATED REVENUE at INR 3.8 billion, up 18% YoY
Chalet Hotels Limited announces results for the third quarter ending December 31, 2023.
Key Highlights for Q3FY24:
Total Income at INR 3.8 bn, up 18% as compared to Q3FY23
EBITDA at INR 1.7 bn, up 18% as compared to Q3FY23, Margin at 45%
Consolidated PAT at INR 706 million
Hospitality Segment Performance:
Revenue at INR 3.4 bn, up by 29% from Q3FY23
ARR at INR 10,974, up by 8% over Q3FY23
Same store ARR at INR 11,253, up by 11% over Q3FY23
Occupancy was at 71%, expansion of 6 percentage points over Q3FY23
RevPAR improved by 18% YOY to INR 7,838
EBITDA was at INR 1.6 billion, up by 46% from Q3FY23
The board also approved raising of funds up to INR 20 Bn through issue of equity shares or any other convertible instruments, subject to shareholders approval. The proceeds of the issue are intended to be utilized inter alia towards paring down of debt, organic & inorganic growth, general corporate purposes and redemption of preference shares.
ESG Highlights:
The Westin Hyderabad HITEC City has received USGBC LEED GOLD in December 2023 under LEED V4 Building Design and Construction Hospitality.
Development Pipeline – On Schedule:
Hotel inventory expansion at Marriott Bengaluru (~130 rooms) and The Dukes Retreat, Lonavala (~70 rooms)
New hotel projects at The Taj, New Delhi Airport (~390 rooms) and Hyatt Regency, Airoli, Mumbai (~280 rooms)
CIGNUS Bengaluru Tower II is nearing completion.
Handover at CIGNUS POWAI® Tower I, Westin Complex in Powai to begin from Q4FY24.
Speaking on the above, Mr. Sanjay Sethi, MD & CEO, Chalet Hotels Limited, said, “We are pleased to record another strong quarter with highest-ever revenue and EBIDTA. With a strong pipeline for expansion, healthy operating performances and a team that continues to excel, we remain excited about the foreseeable future for our company.”
ITDC posts big jump in Revenue and Profits during half yearly financial results (2023-24)
/India Tourism Development Corporation (ITDC), the public sector undertaking under the aegis of the Ministry of Tourism is delighted to announce a big jump in H1 turnover. Following its remarkable financial performance in FY 2022-23, ITDC continues to demonstrate impressive results in H1 2023-24. The total turnover for the H1 of the year 2023-24 stood at Rs. 246.66 Cr, representing a substantial increase of over 32% compared to the corresponding period of last financial year.
The Profit Before Tax (PBT) for the H1 of the FY 2023-24 reached Rs. 50.87 Cr as compared to Rs. 33.22 Cr for corresponding period of last FY, a growth of over 53% whereas, PAT during this H1 stood at Rs. 37.42 Cr as against Rs. 23.29 Cr for H1 of the last FY. As against last quarter (Q1), the turnover and PAT this quarter (Q2) also grew by 11% and 10% respectively.
Speaking about the same, Mr. M. R. Synrem, IAS, Managing Director, ITDC, said, “ITDC is delighted to report a substantial growth and outstanding performance in H1 for the fiscal year 2023-24. This growth underscores ITDC's unwavering commitment to excellence, prudent financial management, and its steadfast dedication to providing value to its stakeholders. As ITDC continues its expansion within the tourism and hospitality sector, it remains firmly committed to fostering and advancing tourism in India while prioritizing sustainable growth and practices.”
Accor | Third-quarter 2023 revenue of €1,286 million up 13% like-for-like
/REVPAR UP 15% COMPARED WITH Q3 2022
UPGRADED REVPAR GROWTH GUIDANCE FOR 2023
EBITDA EXPECTED TO IMPROVE AT BETWEEN €955 MILLION AND €985 MILLION
Sébastien Bazin, Chairman and Chief Executive Officer of Accor, said:
“The Group’s strong performance during the quarter illustrates once again the strength of business momentum in all of our markets, notably in Asia, and for the brands in our two segments: Premium, Midscale and Economy, on the one hand, and Luxury and Lifestyle on the other. For Accor, this is the 6th consecutive quarter of growth since the return to post-pandemic business levels. These positive trends and our strict financial and operational discipline enable us, once again, to raise our RevPAR and EBITDA guidance for the year."
Hotel demand remained very strong throughout Q3 with RevPAR up 15% compared with prior year despite a very high comparable basis (RevPAR in Q3 2022 was up 14% compared with Q3 2019).
The underlying dynamics observed in previous quarters remained constant, with average price still high and a marked improvement in the occupancy rate which slightly lags the level of 2019.
All regions and segments contributed through solid operating performances, even if the first signs of normalization of activity growth are materializing after several quarters of intense recovery.
In third-quarter 2023, Accor opened 73 hotels, for around 9,200 rooms, and has thus achieved net unit growth of 3% over the last 12 months. At end-September 2023, the Group had a hotel portfolio of 812,425 rooms (5,537 hotels) and a pipeline of around 219,000 rooms (1,273 hotels).
For 2023, the Group is confirming its forecast of net unit growth in the network between 2% and 3%.
Hyatt Reports Third Quarter 2023 Results
/New Record Total Fee Revenue of $250 Million Pipeline Expands to New High of 123,000 Rooms
Hyatt Hotels Corporation ("Hyatt" or the "Company") (NYSE: H) today reported third quarter 2023 financial results. Highlights include:
Net Income was $68 million in the third quarter of 2023 compared to $28 million in the third quarter of 2022. Adjusted net income was $75 million in the third quarter of 2023 compared to $72 million in the third quarter of 2022.
Diluted EPS was $0.63 in the third quarter of 2023 compared to $0.25 in the third quarter of 2022. Adjusted Diluted EPS was $0.70 in the third quarter of 2023 compared to $0.64 in the third quarter of 2022.
Adjusted EBITDA was $247 million in the third quarter of 2023 compared to $252 million in the third quarter of 2022.
Adjusted EBITDA does not include Net Deferrals and Net Financed Contracts of $35 million1 in the third quarter of 2023, and Net Deferrals and Net Financed Contracts of $43 million1 in the third quarter of 2022.
Comparable system-wide RevPAR increased 8.9% in the third quarter of 2023 compared to 2022.
Comparable owned and leased hotels RevPAR increased 6.3% in the third quarter of 2023 compared to 2022. Comparable owned and leased hotels operating margins were 23.5% in the third quarter of 2023.
Comparable All-inclusive Net Package RevPAR increased 8.6% in the third quarter of 2023 compared to 2022.
Net Rooms Growth was approximately 6.2% in the third quarter of 2023.
Pipeline of executed management or franchise contracts was approximately 123,000 rooms.
Share Repurchases were approximately 1.25 million Class A shares for $144 million in the third quarter of 2023.
Marriott International Reports Third Quarter 2023 Results
/Third quarter 2023 comparable systemwide constant dollar RevPAR increased 8.8 percent worldwide, 4.3 percent in the U.S. & Canada, and 21.8 percent in international markets, compared to the 2022 third quarter;
Third quarter reported diluted EPS totaled $2.51, compared to reported diluted EPS of $1.94 in the year-ago quarter. Third quarter adjusted diluted EPS totaled $2.11, compared to third quarter 2022 adjusted diluted EPS of $1.69;
Third quarter reported net income totaled $752 million, compared to reported net income of $630 million in the year-ago quarter. Third quarter adjusted net income totaled $634 million, compared to third quarter 2022 adjusted net income of $551 million;
Adjusted EBITDA totaled $1,142 million in the 2023 third quarter, compared to third quarter 2022 adjusted EBITDA of $985 million;
The company added approximately 17,200 rooms globally during the third quarter, including roughly 13,000 rooms in international markets and more than 4,900 conversion rooms;
At the end of the quarter, Marriott’s worldwide development pipeline totaled more than 3,200 properties and nearly 557,000 rooms, including roughly 40,300 of pipeline rooms approved, but not yet subject to signed contracts. Approximately 238,000 rooms in the pipeline were under construction as of the end of the third quarter;
Marriott repurchased 4.8 million shares of common stock for $950 million during the third quarter. Year to date through October 31, the company has returned $3.7 billion to shareholders through dividends and share repurchases.
