As the first half of 2024 draws to a close, the world’s leading hotel groups, including Accor, Wyndham, Hotusa, major French tourism player La Compagnie des Alpes, CapitaLand Ascott Trust, Minor Hotels and Meliá, IHG, Hyatt or Hilton are all reporting robust performances.
Accor, ever higher, ever stronger
For the first half of 2024, Accor has reported sales of €2,677 million, an increase of 11% compared with the first half of 2023. This increase breaks down into a 4% rise for the Premium, Midscale and Economy division and a 22% rise for the Luxury & Lifestyle division.
The Premium, Midscale and Economy division recorded a 4% increase in RevPAR compared with the second quarter of 2023, still driven more by prices than by occupancy rates, while the Luxury & Lifestyle division saw its RevPAR rise by 8%, mainly due to the increase in occupancy rates.
Most of this increase was driven by the Americas (+12%), followed by the Middle East, Africa & Asia-Pacific (+7%), while Europe & North Africa posted a timid 1% growth.
The Premium, Midscale and Economy division posted EBITDA of 360 million euros, up 9% on the first half of 2023, while the Luxury & Lifestyle division generated EBITDA of 196 million euros, up 13% on the first half of 2023.
The Group share of net profit was therefore €253 million, compared with €248 million in the first half of 2023. The improvement in the share of profit of associates to €49 million, compared with €9 million in the first half of 2023, was mainly due to AccorInvest, which benefited from the stabilisation of business in Europe and the recording of capital gains linked to its ongoing asset disposal plan.
We are extremely pleased. At €504 million, our half-year operating surplus has never been higher. Our margins are growing faster than our sales, which confirms the robustness of our business model. Organising the Group around two divisions allows us to be more efficient and agile, by giving more responsibility to the teams on the ground.
Sébastien Bazin, CEO of Accor
These more than encouraging results enable the Group to confirm its targets for the year, announcing RevPAR growth of between 4% and 5%, network growth of between 3% and 4% and EBITDA of between €1,095 million and €1,125 million.
We are confirming our objectives for the year, and are even increasing our RevPAR forecast, which should rise by 4 to 5% instead of the 3 to 4% initially forecast. Tourism depends on world demographics, air traffic and the middle classes. And all of them are growing.
Sébastien Bazin, CEO of Accor
In the first half of 2024, Accor opened 146 hotels corresponding to 24,000 rooms, representing net network growth of 4.1% over the past 12 months. At the end of June 2024, the Group had a portfolio of 838,722 rooms (5,682 hotels) and a pipeline of 218,000 rooms (1,297 hotels).
Evolution rhymes with expansion at Wyndham
Wyndham reported similarly positive results for the second quarter of this year, with net profit of $86 million, an increase of 23% on the year-earlier quarter. Adjusted net profit was $91 million, an increase of 14% on the year-earlier quarter.
The Group’s adjusted EBITDA rose by 13% year-on-year to $178 million, or 6% on a comparable basis.
Global RevPAR was up 2% at constant exchange rates. Most of this growth was driven by the economy and midscale segments, which posted increases of 9% and 8% respectively, while the upscale segments have still not returned to their 2019 levels (-2%).
The number of rooms in the system as a whole rose by 4% year-on-year, with more than 18,000 rooms opened worldwide, including more than 7,000 in the United States, representing a 16% increase year-on-year. The Group also unveiled the first ECHO Suites Extended Stay by Wyndham in this market.
The development pipeline grew by 1% sequentially and 7% year-on-year to a record 245,000 rooms. Approximately 70% of the pipeline is in the mid-market and upper upscale segments, and 58% of this pipeline relates to the Group’s international growth. Around 79% of the pipeline is new-build, of which around 35% has started construction.
The resilience and highly cash generative nature of our business model was once again fully demonstrated this quarter. Against a backdrop of normalising national RevPAR, we delivered strong adjusted EBITDA thanks to net growth in rooms and ancillary costs. Since the beginning of the year, we have returned more than $250 million to shareholders, which represents 4% of our initial market capitalisation this year.
Geoff Ballotti, CEO of Wyndham Hotels & Resorts
A record first half for Hotusa
For its part, the Hotusa Group has set a new record in its 47-year history, with EBITDA for the first half of 2024 of 102 million euros, 34% higher than its best record to date, which corresponds to the first half of 2023, when it reached 76 million euros, with growth of 66% in the space of a year.
Group sales for the first half of the year totalled €703 million, up 10% on the same period in 2023, when Hotusa achieved total sales of €637 million.
We’re very proud of the work we’ve done. The good performance of the sector, combined with effective management, has enabled us to achieve excellent results in the first half of the year. We are very clear that our growth model must continue to be based on a commitment to digitalisation and technological development, the attraction and training of talent, the continuous improvement of our products and the challenge of maintaining sustained growth in which international expansion plays an increasingly important role.
Amancio López Seijas, Chairman, Hotusa
Compagnie des Alpes shows resilience
France’s long-established mountain and amusement park operator Compagnie des Alpes is also delighted with its solid performance in the first nine months of the 2023/2024 financial year. The Group posted consolidated sales of €975.7 million, up 9.2% on the same period last year.
Most of this growth was driven by the winter season in the Ski Areas division. Sales in this division totalled 542.4 million euros in the first 9 months of the 2023/2024 financial year, representing significant growth of +13.2% on the same period last year. Growth in the 3rd quarter was more modest, at +2.1%.
Business in the 3rd quarter was somewhat penalised by an unfavourable calendar effect linked to the positioning of the Easter weekend and unfavourable weather conditions, the latter having a particular impact on attendance at the Group’s amusement parks. Nevertheless, sales for the period remained stable at €214.6 million, compared with €215.2 million in the 3rd quarter of the previous year.
Despite a slight decline of -1.9% recorded by the amusement park division in the 3rd quarter, total sales for the full 9 months of the 2023/2024 business came to 328.5 million euros, up 4.7% on the same period last year. This growth was mainly driven by an increase in average spend per visitor of over 4%, with the number of visitors up only very slightly (+0.6%).
The Distribution & Hospitality division posted sales of €104.8 million for the period as a whole, up 4.3% on the first 9 months of the 2022/2023 financial year. Hotel and mountain residence operator MMV and estate agency network Mountain Collection Immobilier both posted double-digit growth in their respective businesses over the period. On the other hand, the performance of tour operator TravelFactory was severely impacted by the discontinuation of its rail offer and by its strategic refocusing on margins rather than volumes.
CapitaLand Ascott Trust increases revenue on stronger operating performance
CapitaLand Ascott Trust (CLAS) reported a 12% increase in gross profit for the first half of 2024 to S$172.9 million. Sales also increased by 11% to S$386.4 million, driven by sustained housing demand and improved operating performance. On a like-for-like basis, gross profit and sales rose by 3% and 4% respectively.
Asset improvement initiatives (AEI) have been completed on four properties, including La Clef Tour Eiffel Paris, while four other properties are being renovated and one serviced residence is under development. Once completed, these initiatives should increase CLAS’s distribution income.
With the recovery in international travel, CLAS’ revenue per available unit (REVPAU) increased by 5% in the first half of 2024 to S$145. For the second quarter of 2024, REVPAU increased by 4% to S$155, exceeding pre-pandemic levels of 102% of pro forma REVPAU for the second quarter of 2019. Key markets, including Japan and the US, outperformed pre-pandemic levels thanks to higher room rates.
CLAS maintains a strong financial position with an average cost of debt of 3% per annum to 30 June 2024. Approximately 82% of CLAS’s debt is fixed rate, with a weighted average maturity of 3.6 years and an interest cover ratio of 3.7 times. CLAS’s leverage is 37.2%, well below the authorised limit of 50%. CLAS also has S$1.29 billion in available cash and credit facilities.
A very dynamic first half for Minor Hotels
The hotel group recorded strong growth in the first half of 2024, with sales up 11.5% to €1.15 billion. Net profit rose by 57.4% to €71 million, compared with €45 million for the same period last year.
Hotel occupancy rates averaged 67.6%. EBITDA rose by 11.4% to €298 million, driven by strong demand in the business and leisure travel segment and a controlled operating cost structure.
Despite the typical seasonal weakness in the first quarter and investments of €77 million, Minor Hotels Europe & Americas was able to reduce its net debt by €24 million in the first half, to €241 million. Minor reports that the company’s cash position remained strong at €537 million at 30 June 2024.
Second quarter:
Minor Hotels has released its financial results for the second quarter of 2024, showing a robust performance with quarterly revenue up 11% year-on-year and consolidated core profit for the first half up 16% on 2023. This continued double-digit growth for the Bangkok-based group, which operates more than 550 hotels worldwide, has been underpinned by persistent demand for business and leisure travel across all markets, particularly in Europe.
In the second quarter of 2024, Minor Hotels reported a consolidated core net profit of THB 2.6 billion (approximately USD 72 million), an increase of 3% year-on-year.
The group also reported significant increases in occupancy rates in Asia, the Indian Ocean and the MEA region, with an increase of four percentage points to 56% in the second quarter of 2024. Globally, occupancy results were positive but more modest, increasing by one percentage point for the quarter and two percentage points for the six months.
Average daily rate (ADR) across the global portfolio was up 11% year-on-year for the quarter, resulting in a 12% increase in revenue per available room (RevPAR).
Minor-owned hotels in Thailand experienced significant growth, with RevPAR for the second quarter up 14% year-on-year. This reflects the strong recovery in international tourist arrivals from key markets such as the US, China, Europe, India and Australia.
Meliá increases profits by 11.2% in the first half of 2024
Financial results
Meliá Hotels International recorded a consolidated net profit of 51.4 million euros in the first half of 2024, marking an 11.2% increase on the same period last year. Sales rose by 5.5% to €960.1 million. Excluding certain exceptional items in the second quarter of the previous year, revenue growth would have been 11.7%.
The Group’s EBITDA rose by 10% to €240.3 million. Meliá also reduced its net financial debt by €271.6 million to €892.1 million, thereby making progress towards its objective of keeping the Net Financial Debt/EBITDA ratio below 2.5x by the end of 2024.
Operating performance
RevPAR continued to grow, rising by 13.2% thanks mainly to improved rates and higher occupancy. Urban and holiday hotels in Spain performed particularly well, outperforming other destinations in terms of RevPAR, supported by a favourable economic climate and the country’s stronger tourism positioning.
Regional performances
Spain: City hotels benefited from strong demand from the MICE (conferences, events and incentives) and corporate segments, returning to pre-pandemic levels in the second quarter. Holiday hotels saw a marked improvement in occupancy and double-digit rate increases.
Europe: In Germany, a buoyant events and trade fair segment, boosted by the UEFA Cup, underpinned performance. Milan and London also performed well, with increased demand and positive events.
New signings and openings
Meliá signed 27 new projects in the first half, meeting its annual commitment of 30 hotels. These new projects, mainly under management and franchise formulas, include hotels in Malta, Albania, Thailand, Cuba, Spain and Greece. The Group has also opened 13 new hotels, including six in Spain, and reopened two properties after refurbishments.
Outlook for the third quarter
Meliá anticipates another positive summer season, exceeding the figures for previous years for the third year running. The company maintains its forecast of closing 2024 with a double-digit increase in RevPAR and an annual EBITDA of at least €525 million.
Strong performance with operating profit from reportable segments increasing by 12% and Adjusted EPS also up by 12%. The group has achieved record signings and is on track to return over $1 billion to shareholders, remaining confident in its long-term growth drivers.
The IHG Group records strong growth and a record number of signatures
Trading and Revenue:
For the first half of the year, global RevPAR increased by 3.0%, with the second quarter showing a rise of 3.2%. In the Americas, RevPAR grew by 1.7% in the first half and 3.3% in the second quarter. EMEAA saw a significant increase of 7.5% in the first half and 6.3% in the second quarter. However, Greater China experienced a decline of 2.6% in the first half and a more pronounced drop of 7.0% in the second quarter. In the US, RevPAR turned positive from April onwards, achieving a 2.5% increase in the second quarter. The average daily rate improved by 2.0%, and occupancy rose by 0.6 percentage points. Overall, total gross revenue for the group was $16.1 billion, marking a 6% increase.
System Size and Pipeline:
The group’s gross system growth was 4.9% year-over-year, while net system growth stood at 3.2% year-over-year. In the first half of the year, IHG opened 18,000 rooms across 126 hotels, expanding its global estate to 955,000 rooms in 6,430 hotels. Additionally, the group signed 57,100 rooms across 384 hotels in the first half, representing a 67% year-over-year increase, or 15% when adjusting for Iberostar and NOVUM. This brings the global pipeline to 330,000 rooms in 2,225 hotels, a 15% increase year-over-year.
The second quarter alone saw the opening of 11,700 rooms in 80 hotels, showing a good sequential improvement from 6,300 rooms in the first quarter. Furthermore, IHG signed 39,400 rooms in 255 hotels during the second quarter, compared to 17,700 rooms in the first quarter. The second-quarter signings were up by 123% year-over-year in total, or up by 23% when adjusting for Iberostar and NOVUM.
Cash Flow and Net Debt:
Trailing 12-month adjusted EBITDA was $1,140 million, reflecting a 14% year-over-year increase. The net debt to adjusted EBITDA ratio stands at 2.4x.
Elie Maalouf, Chief Executive Officer, IHG Hotels & Resorts, said:
“With thanks to our teams around the world, we are making great progress on the delivery of our strategic priorities and the clear framework to drive future value creation that we set out in February. RevPAR growth accelerated in the latest quarter, reflecting a strong US rebound in Q2 and the breadth of our global footprint, and development activity continues to increase. Together with system growth, notable margin expansion and the benefit of returning surplus capital through buybacks, adjusted EPS growth was +12%.”
“We continue to strengthen our enterprise to position IHG as first choice for guests and owners, further improving and growing our brands, driving loyalty contribution, rolling out new hotel technology and increasing our ancillary fee streams. Our cash generation and strong balance sheet continue to support further investment in growth, and we are confident in capitalising on our scale, leading positions and the attractive, long-term demand drivers for our markets.”
Hyatt announces Q2 2024 results and strategic expansion
Hyatt Hotels Corporation has released its financial results for the second quarter of 2024, highlighting key growth metrics and strategic expansion plans. The company experienced a 4.7% increase in revenue per available room (RevPAR) across its global portfolio compared to the same quarter in 2023, with its all-inclusive resorts reporting a 3.0% rise in net package RevPAR. Hyatt reported a net income of $359 million and an adjusted net income of $158 million, with a diluted earnings per share (EPS) of $3.46 and an adjusted diluted EPS of $1.53.
“We posted solid second quarter results demonstrating our differentiated positioning and continued momentum. System-wide RevPAR grew by 4.7% and net rooms growth was 4.6%, generating record gross fee revenue of $275 million in the quarter. Our pipeline reached a new record of 130,000 rooms, up 9% year-over-year, reflecting strong developer interest in our brands. We saw continued growth of the World of Hyatt loyalty program, with membership increasing by 21% year-over-year to a record 48 million members. These achievements demonstrated the strength of our asset-light earnings model, which is designed to deliver strong free cash flow and enhance shareholder value.” – Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt
Hyatt achieved a net rooms growth of approximately 4.6% during the second quarter, adding 18 new hotels and 3,251 rooms to its portfolio. Significant openings included Park Hyatt Changsha and the first Hyatt Vivid Hotels & Resorts property, Hyatt Vivid Grand Island. The company’s pipeline of executed management and franchise contracts was approximately 130,000 rooms.
In the management and franchising segment, Hyatt reported strong performance from business transient and group travel, particularly in the U.S. and Europe. RevPAR in the U.S. increased by over 2%, supported by robust demand for group and business travel. Meanwhile, leisure travel experienced slight challenges due to factors such as the timing of Easter, resort renovations, and the lingering effects of the 2023 Maui wildfires. In Europe, inbound travel from the U.S. remained strong due to large one-time events. In Asia Pacific, excluding Greater China, RevPAR rose approximately 18%.
For owned and leased properties, adjusted EBITDA increased by 9% compared to the second quarter of 2023. Comparable margins improved by 110 basis points as revenue growth outpaced expenses. In the distribution segment, adjusted EBITDA rose by $9 million compared to the same quarter in 2023, although excluding the Unlimited Vacation Club, adjusted EBITDA slightly lagged behind last year due to a strong performance in the previous second quarter.
Hyatt also made strategic moves in transactions and capital strategy, acquiring the me and all hotels brand from Lindner Hotels AG, which includes six hotels with over 1,000 rooms in Germany. This acquisition is part of Hyatt’s continued efforts to expand its footprint in key markets. The company remains committed to its $2.0 billion asset sell-down target, having realized $1.5 billion in gross proceeds from real estate sales. Hyatt aims to achieve the full $2.0 billion target by the end of 2024 as part of its asset disposition strategy.
Hyatt reported total liquidity of approximately $3.5 billion as of June 30, 2024, with total debt amounting to $3,885 million and a pro rata share of unconsolidated hospitality venture debt of $451 million. During the second quarter, Hyatt repurchased 906,875 shares of Class A common stock for approximately $134 million, leaving $1.6 billion remaining under the share repurchase authorization.
For the full year 2024, Hyatt projects a RevPAR increase of 3.0% to 4.0% compared to 2023 and a net rooms growth target of 5.5% to 6.0%. The company expects net income between $1,055 million and $1,115 million and adjusted EBITDA between $1,135 million and $1,175 million. Hyatt plans to return between $800 million and $850 million to shareholders this year.
Hilton: Robust financial performance in Q2 2024 with continued portfolio expansion
The Group reported a net profit of USD 422 million, supported by adjusted EBITDA of USD 917 million. System-wide RevPAR increased by 3.5% compared to the same period in 2023, reflecting increases in both occupancy and average daily rate (ADR). This increase is attributable to favourable momentum across all segments, with a special mention for group performance.
Hilton’s network expansion intensified with the approval of 62,700 new rooms during the quarter, bringing the development pipeline to a record 508,300 rooms, representing year-on-year growth of 15%. In addition, Hilton added 22,400 new rooms to its portfolio during the quarter, increasing net rooms by 18,000, representing net unit growth of 6.2% year-on-year.
Among the highlights of the quarter, Hilton acquired the Graduate Hotels brand in May, strengthening its lifestyle offering. The group also announced a strategic partnership with Small Luxury Hotels of the World (SLH), allowing nearly 400 SLH hotels to join its network, adding around 18,000 rooms to its portfolio from July.
For the full year 2024, Hilton expects system-wide RevPAR growth of between 2.0% and 3.0% compared to 2023, with net profit expected to be between USD 1,532 million and USD 1,555 million. Adjusted EBITDA is expected to be between $3,375 million and $3,405 million, while net unit growth is expected to remain between 7.0% and 7.5%.
For the third quarter of 2024, Hilton expects comparable system-wide RevPAR to increase between 2.0% and 3.0%, with net income expected to be between $435 million and $448 million, and Adjusted EBITDA between $875 million and $890 million.
“We are pleased to report a solid second quarter, with an increase in RevPAR of 3.5%, driven by growth in all segments, with particularly strong group performance. On the development side, we ended the quarter with a record development pipeline, up 15% from the prior year and up 8% sequentially from the first quarter, including strategic partner hotels. Looking forward to the rest of the year, with the continued growth of our existing brands, as well as the addition of our new brands and strategic partner hotels, we expect net unit growth of 7.0 percent to 7.5 percent for the full year.” – Christopher J. Nassetta, President & Chief Executive Officer of Hilton
Choice Hotels International posts strong Q2 2024 performance and adjusts annual projections
Choice Hotels International has announced its financial results for the second quarter of 2024, reflecting notable progress and growth across various metrics. The company reported total revenues of $435.2 million for the quarter, setting a new record with a 2% increase compared to the same period in 2023. Net income also rose by 3% to $87.1 million, translating to a diluted earnings per share (EPS) of $1.80, marking a 9% increase from the previous year. Additionally, the company’s adjusted EBITDA reached a quarterly high of $161.7 million, a 6% increase year-over-year.
Expansion of Global and Domestic Operations
Choice Hotels continues to expand its reach, with its global rooms pipeline increasing by 22% year-over-year, totaling over 114,000 rooms. This growth includes a significant rise in conversion rooms. During the second quarter, global hotel openings increased by 20% compared to the same period last year. The international portfolio expanded by 1.6% in room count, with international hotel openings doubling from 2023.
Domestically, the pipeline for upscale, extended stay, and midscale brands grew by 11%, with a substantial 65% increase in conversion rooms. Choice Hotels executed 118 domestic hotel openings in the first half of 2024, a 10% increase from the previous year. Of these, 82% of franchise agreements were dedicated to conversion hotels. The WoodSpring Suites brand experienced a 10% growth, maintaining its top ranking in guest satisfaction among economy extended-stay hotel brands.
“Choice Hotels generated another quarter of record financial performance amid a normalizing domestic RevPAR environment, demonstrating the strength of our versatile business model and proven growth strategy,” “We increased our global pipeline to new levels propelled by robust demand for our brands, accelerated the velocity of our global hotel openings, expanded our international reach, and significantly grew the size of our rewards program. With our meaningfully enhanced hotel portfolio profile, we are confident in the company’s ability to continue to deliver sustained earnings growth, invest in profitable long-term growth initiatives, and return significant capital to shareholders.” – Patrick Pacious, President and Chief Executive Officer of Choice Hotels International, Inc.
Financial Strategy and Liquidity Management
Choice Hotels has taken steps to enhance its financial position by increasing its revolving credit facility to $1 billion and issuing $600 million in new senior notes to manage existing debts and reduce borrowing expenses. As of June 30, 2024, the company had a liquidity position of approximately $530 million.
In the first half of 2024, Choice Hotels repurchased 2.4 million shares of common stock for $296.2 million and paid cash dividends totaling $28.9 million. The company still has 4.4 million shares available for repurchase under its current authorization.
Updated 2024 Financial Outlook
Choice Hotels has adjusted its full-year 2024 financial outlook to account for a more moderated domestic RevPAR growth. The company projects net income between $260 million and $272 million, with adjusted net income ranging from $309.5 million to $321.5 million. Adjusted EBITDA is expected to be between $580 million and $600 million.
Despite a revised RevPAR growth forecast, Choice Hotels anticipates continued growth in its upscale, extended stay, and midscale segments, with net unit growth of approximately 2%. The company remains focused on leveraging its strong brand presence and strategic initiatives to drive further expansion and shareholder value.
Travelodge Group: Solid performance driven by strategic investment and resilient customer demand
In the first half of 2024, Travelodge Group reported a 1.7% increase in revenue to £486.7 million, largely driven by sustained demand from a diverse leisure and business customer base. Higher occupancy rates, combined with the opening of new hotels, contributed to this growth.
Group EBITDA was £82.2 million, impacted by planned investments to improve growth and quality, as well as inflationary pressures. These investments included an accelerated refurbishment programme, a multi-channel advertising campaign and acquisitions of freehold properties, which together contributed to a positive overall result.
The Spanish market performed particularly well, with an impressive 45% increase in sales, driven by like-for-like growth of 12% and the acquisition of new hotels. This positive momentum in Spain, combined with strong cash flow generation and good liquidity management, augurs well for a promising second half. The company strengthened its presence by doubling its Spanish portfolio to 12 hotels, thanks to the acquisition of six properties from the Louvre Group, five of which are already operating under the Travelodge brand. In addition, agreements have been signed for the construction of three new hotels in San Sebastian, Cadiz and Alicante, strengthening Travelodge’s presence in the growing Spanish market.
The UK market remains at the heart of Travelodge’s expansion strategy. In February 2024, Travelodge PropCo completed the acquisition of 66 freehold and long leasehold hotels from LXi REIT plc for £210 million. In addition, Travelodge OpCo has opened five new properties in the UK since the start of the year, strategically located in London Bermondsey, Rotherham, Colchester, Bristol and London Oval, with a further hotel due to open by the end of the year. The UK hotel market continues to offer significant opportunities for future development.
The outlook for the second half of the year is encouraging, with July revenues already ahead of 2023 and future bookings also looking better than last year. These results position Travelodge Group well to continue to capture growing demand, particularly for long-term events, and to pursue its investment strategy to consolidate its leadership in the budget hotel market.
“UK revenues in the third quarter to date are modestly below 2023 levels but we were encouraged by improving trends during July, with UK revenues ahead of 2023 in that month. Forward bookings are also positive, with booked revenue to the end of the year ahead of 2023 levels at this point, driven by strong event demand. Our strong financial position, combined with our affordable proposition and diversified, increasingly well invested hotel network, position us well for long-term growth.” – Jo Boydell, Travelodge Chief Executive
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