From the desks of the Hotel News Now editorial staff:
- Hilton focuses on unit growth
- Marriott, Choice, Hyatt, MGM report for Q4
- US RevPAR drops 5.9% for week
- European hotel investment passes €20b
- Jobless claims show slight increase
Hilton focuses on unit growth: Hilton is promising to continue its record unit growth pace in 2017, CEO and President Chris Nassetta said during the company’s fourth quarter and full-year 2016 earnings call. Following the spinoffs of its vacation rentals and owned assets, Nassetta said the company is able to focus on the growth of its brands and possibly the addition of new brands.
“Globally, more than one in five rooms under construction is being developed as a Hilton brand,” Nassetta said. “Our five newest brands represent nearly 800 hotels and 90,000 rooms that are either open or in the pipeline.”
The company is projecting to net 50,000 to 55,000 more units in 2017, representing roughly 6.5% growth, Hotel News Now’s Stephanie Ricca reports.
Marriott, Choice, Hyatt, MGM report for Q4: Speaking of fourth quarter earnings, here’s a rundown of some of the latest earnings reports for Q4 and full-year 2016 from publicly traded hotel companies.
Marriott International: The big news for Marriott in 2016 was the acquisition of Starwood Hotels & Resorts International, but the company also reported the addition of more than 68,000 new rooms. The company saw constant dollar RevPAR grow 0.8% in the fourth quarter and 1.8% for the full year.
Choice Hotels International: Choice officials said their domestic hotels outpaced industry revenue growth, with RevPAR increasing 3.9% for the full-year 2016 and 5% for the fourth quarter.
Hyatt Hotels Corporation: The company saw RevPAR increase 2.5% year over year for full-year 2016, with 2.2% growth in owned and leased properties. The company also reported a 64.5% increase in net income to $204 million.
MGM Resorts International: The company saw strong revenue growth for its Las Vegas Strip resorts, with RevPAR increasing 6% for full-year 2016. The company reported net revenues of $9.5 billion for the year.
U.S. RevPAR drops 5.9% for week: Hotels in the U.S. saw a significant drop in revenue for the week ending 11 February, according to the latest data from Hotel News Now’s parent company STR. Year over year, RevPAR dropped 5.9% to $72.41 as occupancy fell 4.4% to 59.6% and average daily rate dropped 1.6% to $121.43.
Canadian hotels experienced a similar drop, with RevPAR down 79.47 Canadian dollars ($61.07). Occupancy fell 1.4%, and ADR dropped CA$140.06 ($107.64).
European hotel investment passes €20b: CBRE Hotels said hotel investment was down 7% year over year in 2016, but the €20.4 billion ($21.7 billion) worth of investment activity was still “considerably higher than the long-run average,” according to a news release.
CBRE said German’s transaction activity was particularly strong, with €5.1 billion ($5.4 billion) in completed deals for 2016.
Jobless claims show slight increase: The number of people seeking unemployment benefits rose by 5,000 last week, but the seasonally adjusted 239,000 “remains consistent with a labor market that continues to add jobs,” The Wall Street Journal reports.
The overall number came in lower than economist estimates of 243,000. This is the 102nd consecutive week with that number staying below 300,000.
Compiled by Sean McCracken.