From the desks of the Hotel News Now editorial staff:
- Accor reports sound numbers, awaits AccorInvest cash
- IHG sees RevPAR rise 2.3% in Q3 numbers
- US hotels see continued boost across all metrics
- Interstate launches lifestyle division Intrigue
- 50% of business travelers still favor rogue bookings
Accor reports sound numbers, awaits AccorInvest cash: AccorHotels executives at the company’s third-quarter 2017 earnings conference call were confident of fulfilling its full-year 2017 operating profit guidance at the upper end of the €460 million ($542.1 million) to €480 million ($566 million), as announced at its last earnings roundup in July.
Executives were jubilant at recent M&A activity that saw full and 50% stakes in Australia’s Mantra Group and the French brand Orient Express, respectively, as they also continue in negotiations with a “potential investor” regarding offloading a sizable share of its HotelInvest division, known as AccorInvest or Booster Perimeter.
IHG sees RevPAR rise 2.3% in Q3 numbers: InterContinental Hotels Group released its third-quarter 2017 earnings numbers, which highlighted a 2.3% increase in revenue per available room. Two of its regions saw revenue per available room increase by more than 7%, with Greater China coming in at 7.8% and Europe coming in at 7.1%.
Paul Edgecliffe-Johnson, CFO, added at a conference call that two areas he would like to see IHG investigate further are the potential establishment of a soft-brand collection and an additional “something in the luxury space.” The company’s net system size grew 4.1% year on year to 786,000 rooms, which Edgecliffe-Johnson said was IHG’s “fastest pace of growth since 2010.”
U.S. hotels see robust boost across all metrics: Occupancy, average daily rate and revenue per available room all went up year over year at U.S. hotels for the week ending 14 October, according to the latest data from HNN’s parent company STR. Occupancy was up 2.4% to 72.3%, while average daily rate climbed 5.3% to $130.83 for a combined increase of 7.8% in RevPAR to $94.58.
The top performer in growth numbers for top 25 markets was Houston, which saw occupancy rise 37.3% year over year to 85.2%, while its RevPAR increased 57% to $99.76. Two additional markets saw RevPAR growth of more than 25% for the week: Washington, D.C.-Maryland-Virginia (36.3% to $160.43) and Dallas, Texas (26.2% to $96.26).
Interstate launches lifestyle division Intrigue: Interstate Hotels & Resorts has launched a lifestyle management division, Intrigue Hotels & Resorts by Interstate, which in a news release it states will deliver “innovative culture, style and technology, as well as next generation lodging and experiential services to fulfill the curiosities of the modern traveller.”
Leslie Ng, Interstate’s chief investment officer, said “with our extensive experience with independent and lifestyle properties, we anticipate strong future momentum, especially in urban and gateway markets such as New York City, Chicago, Miami and Los Angeles. Intrigue will be based in Arlington, Va., and New York City.
50% of business travelers still favor rogue bookings: Half of all business travelers are still allowed to book travel using any method they choose, regardless of the existence of any corporate travel program being in place, and a full 46% have done so for hotel bookings, according to the fourth edition of the Egencia Business Travel & Technology Survey.
The report added that “business travelers book out-of-policy because either they could not find a hotel close enough to their destination (37%) or found a better price or hotel within their per diem (37%) and suggested companies needed to “rein in these rogue booking tendencies … (and) relevancy, incentivization and clear policies can pave the way” to more people choosing to book via the corporate program.
Compiled by Terence Baker.