Hyatt Hotels Corporation, MGM Resorts International and Red Lion Hotels Corporation all released their first quarter results Thursday.
Below are highlights from each of the companies’ results.
Hyatt:
- Comparable owned and leased hotel revenue per available room increased 8.3% in the first quarter of 2012 compared to the first quarter of 2011.
- Comparable North American full-service hotel RevPAR increased 8.1% in the first quarter of 2012 compared to the first quarter of 2011. Comparable North American select-service hotel RevPAR increased 7.2% in the first quarter of 2012 compared to the first quarter of 2011.
- Comparable international hotel RevPAR increased 5.7% (6.5% excluding the effect of currency) in the first quarter of 2012 compared to the first quarter of 2011.
- Hyatt added six properties during the first quarter of 2012.
MGM:
- Consolidated net revenue increased 51% to $2.3 billion; excluding MGM China; net revenue increased 5% compared to the prior year quarter.
- Consolidated operating income was $193 million compared to $170 million in the first quarter of 2011.
- Net loss per share attributable to MGM Resorts was 44 cents compared to a loss of 18 cents per share in the prior year first quarter.
- Rooms revenue for MGM’s wholly owned domestic resorts increased 3% compared to the prior year quarter with a 4% increase in RevPAR at the company’s Las Vegas Strip resorts.
Red Lion:
- RevPAR for owned and leased hotels increased 7.3% year-over-year.
- Occupancy increased 360 basis points year-over-year driven primarily by an increase in the transient segment.
- ADR for owned and leased hotels was flat year-over-year.
- Net loss from continuing operations was $6.6 million, including a pre-tax impairment charge of $5.9 million; net loss from continuing operations was $4.5 million in the first quarter of 2011.
The U.S. hotel industry will continue building on the momentum gained during the past several months, but the prospect of weakening demand looms, panelists said Wednesday during the inaugural Hotel Equity and Lender Perspectives conference in Boston.
The recent uptick in leading economic indicators bodes well for the immediate future of the industry, Mark Woodworth, president of PKF Hospitality Research, said during the opening general session. The data shows demand is likely to show growth in hotel demand in the late third quarter this year and stretching into early 2013. Year-to-date through March, demand is up 4.1%, according to data from STR, parent company of HotelNewsNow.com.
Revenue per available room and average daily rate were up 7.9% and 4% year-to-date through March according to STR..
The upward trend should continue, said Rachel Roginsky, principal with Pinnacle Advisory Group. “So far so good is our theme,” she said.
Read “Hotel demand could weaken long term.”
Hyatt announced Wednesday that a Hyatt affiliate intends to acquire the 756-room Hotel Nikko Mexico for approximately $190 million from Japan-Mexico Hotel Investment Company.
The transaction is scheduled to close in May, and upon closing, the hotel will be rebranded as the Hyatt Regency Mexico City. Hyatt will invest approximately $450 million in a three-year renovation. The property will have 734 rooms after combining some of the existing rooms into suites.
STR released weekly performance numbers Wednesday for the U.S. and Canada.
U.S.: Overall, the U.S. hotel industry’s occupancy was up 6.4% to 65%, ADR increased 7.5% to $106.67 and RevPAR jumped 14.4% to $69.34.
Among the top 25 markets, New Orleans reported the largest ADR (+23.1% to $168.58) and RevPAR growth (+15% to 85.5%). Oahu Island, Hawaii, reported the largest occupancy increase, rising 17.5% to 81%.
Canada: In year-over-year measurements, the country’s occupancy ended the week with an 8.4% increase to 65.1%, its ADR was up 1.9% to 124.51 Canadian dollars and its revenue RevPAR increased 10.5% to CA$81.05.
Among the provinces, Saskatchewan experienced the largest occupancy increase, rising 20.6% to 76.9%. Prince Edward Island reported the only double-digit ADR increase, rising 10.7% to CA$87.98. Saskatchewan posted the highest RevPAR increase (+26.1% to CA$97.75).
The advance figure for seasonally adjusted initial employment claims in the U.S. fell by 27,000 to 365,000, according to the U.S. Department of Labor.
The four-week moving average increased, going up 750 to 383,500.
Compiled by Stephanie Wharton.
